Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 461
AN ACT to amend the Indiana Code concerning commercial law.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 15-11-8 IS REPEALED [EFFECTIVE JULY 1,
2025]. (Inspection of Grain Moisture Testing Equipment).
SECTION 2. IC 26-3-7-2, AS AMENDED BY P.L.208-2021,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. The following definitions apply throughout this
chapter:
(1) "Agency" refers to the Indiana grain buyers and warehouse
licensing agency established under section 1 of this chapter.
(2) "Anniversary date" means the date that is ninety (90) calendar
days after the fiscal year end of a business licensed under this
chapter.
(3) "Bin" means a bin, tank, interstice, or other container in a
warehouse in which bulk grain may be stored.
(4) "Board" means the governing body of the Indiana grain
indemnity corporation created by IC 26-4-3-2.
(5) "Buyer-warehouse" means a person that operates both as a
warehouse licensed under this chapter and as a grain buyer.
(6) "Claimant" means a person to whom a licensee owes a storage
or financial obligation under this chapter for grain that has been
delivered to the licensee for sale or for storage under a bailment.
(7) "Crop year" means the period from one (1) year's harvest to
the next year for a specified field crop as follows:
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(A) Barley and barley seed from June 1 to May 31.
(B) Canola and canola seed from July 1 to June 30.
(C) Corn and corn seed from September 1 to August 31.
(D) Lentils and lentil seed from July 1 to June 30.
(E) Oats and oat seed from June 1 to May 31.
(F) Popcorn and popcorn seed from September 1 to August 31.
(G) Rye and rye seed from June 1 to May 31.
(H) Sorghum and sorghum seed from September 1 to August
31.
(I) Soybeans and soybean seed from September 1 to August
31.
(J) Sunflower and sunflower seed from September 1 to August
31.
(K) Wheat and wheat seed from June 1 to May 31.
(L) All other field crops and other field crop seed from
September 1 to August 31.
(8) "Daily position record" means a written or electronic
document that is maintained on a daily basis for each grain
commodity, contains a record of the total amount of grain in
inventory for that business day, and complies with any
requirements established by the director.
(9) "Deferred pricing" or "price later" means a purchase by a
buyer in which title to the grain passes to the buyer and the price
to be paid to the seller is not determined:
(A) at the time the grain is received by the buyer; or
(B) less than twenty-one (21) days after delivery.
(10) "Delayed payment" means:
(A) a purchase by a buyer in which title to the grain passes to
the buyer at a determined price; and
(B) payment to the seller is not made in less than twenty-one
(21) days after delivery.
(11) "Depositor" means any of the following:
(A) A person that delivers grain to a licensee under this
chapter for storage or sale.
(B) A person that:
(i) owns or is the legal holder of a ticket or receipt issued by
a licensee for grain received by the licensee; and
(ii) is the creditor of the issuing licensee for the value of the
grain received in return for the ticket or receipt.
(C) A licensee that stores grain that the licensee owns solely,
jointly, or in common with others in a warehouse owned or
controlled by the licensee or another licensee.
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(12) "Designated representative" means the person or persons
designated by the director to act instead of the director in assisting
in the administration of this chapter.
(13) "Director" means the director of the Indiana grain buyers and
warehouse licensing agency appointed under section 1 of this
chapter.
(14) "Facility" means a permanent business location or one (1) of
several permanent business locations in Indiana that are operated
as a warehouse or by a grain buyer.
(15) "Failed" or "failure" means any of the following:
(A) The inability of a licensee to financially satisfy fully all
obligations due to claimants.
(B) Public declaration of a licensee's insolvency.
(C) Revocation of a licensee's license, if the licensee has
outstanding indebtedness owed to claimants.
(D) Nonpayment of a licensee's debts in the ordinary course of
business, if there is not a good faith dispute.
(E) Voluntary surrender of a licensee's license, if the licensee
has outstanding indebtedness to claimants.
(F) Involuntary or voluntary bankruptcy of a licensee.
(15) "Flat price contract" means a contract that sets a fixed
price for a specific delivery requirement, where the price is
determined by adding the basis to the futures price of the
same commodity, which is set before the futures contract
expires.
(16) "Fund" means the Indiana grain indemnity fund established
under IC 26-4-4-1.
(17) "Grain" means corn for all uses, popcorn, wheat, oats, barley,
rye, sorghum, soybeans, oil seeds, other agricultural commodities
as approved by the agency, and seed as defined in this section.
The term does not include canning crops for processing or sweet
corn.
(18) "Grain assets" means any of the following:
(A) All grain and grain coproducts owned or stored by a
licensee, including the following:
(i) Grain that is in transit following shipment by a licensee.
(ii) Grain that has not been paid for.
(iii) Grain that is stored in unlicensed facilities that are
leased, owned, or occupied by the licensee.
(B) All proceeds, due or to become due, from the sale of a
licensee's grain.
(C) Equity, less any secured financing directly associated with
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the equity, in hedging or speculative margin accounts of a
licensee held by a commodity or security exchange, or a dealer
representing a commodity or security exchange, and any
money due the licensee from transactions on the exchange,
less any secured financing directly associated with the money
due the licensee from the transactions on the exchange.
(D) Any other unencumbered funds, property, or equity in
funds or property, wherever located, that can be directly traced
to the sale of grain by a licensee. However, funds, property, or
equity in funds or property may not be considered encumbered
unless:
(i) the encumbrance results from valuable consideration paid
to the licensee in good faith by a secured party; and
(ii) the encumbrance did not result from the licensee posting
the funds, property, or equity in funds or property as
additional collateral for an antecedent debt.
(E) Any other unencumbered funds, property, or equity in
assets of the licensee.
(19) "Grain bank grain" means grain owned by a depositor for use
in the formulation of feed and stored by the warehouse to be
returned to the depositor on demand.
(20) "Grain buyer" means a person who is engaged in the business
of buying grain from producers.
(21) "Grain coproducts" means any milled or processed grain,
including the grain byproduct of ethanol production.
(22) "Grain standards act" means the United States Grain
Standards Act, approved August 11, 1916 (39 Stat. 482; 7 U.S.C.
71-87 as amended).
(23) "License" means a license issued under this chapter.
(24) "Licensee" means a person who operates a facility that is
licensed under this chapter.
(25) "Official grain standards of the United States" means the
standards of quality or condition for grain, fixed and established
by the secretary of agriculture under the grain standards act.
(26) "Parent entity" means an entity that owns at least twenty
percent (20%) or the equivalent of another entity, including
through shares, membership interests, or other securities, or
as a partner in a general partnership or joint venture.
(26) (27) "Person" means an individual, partnership, corporation,
association, or other form of business enterprise.
(27) (28) "Receipt" means a warehouse receipt issued by a
warehouse licensed under this chapter.
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(29) "Revocation of a license" means any of the following:
(A) The inability of a licensee to financially satisfy fully all
obligations due to claimants.
(B) Public declaration of a licensee's insolvency.
(C) Revocation of a licensee's license, if the licensee has
outstanding indebtedness owed to claimants.
(D) Nonpayment of a licensee's debts in the ordinary
course of business, if there is not a good faith dispute.
(E) Involuntary or voluntary bankruptcy of a licensee.
(28) (30) "Seed", notwithstanding IC 15-15-1, means grain set
apart to be used primarily for the purpose of producing new
plants.
(29) (31) "Seed inventory" means seed for commercial sale.
(32) "Storage" means a facility or system that is designed,
structured, and equipped to receive, clean, dry, store, and
dispense grains or seeds. The term includes a facility where
the producer has maintained:
(A) title to the grain until selling or moving the grain to a
facility other than the facility where the grain was
delivered; and
(B) a record or proof of storage at the facility where the
grain was delivered.
(33) "Storage loss" means a loss to a storage depositor
resulting from a warehouse operator:
(A) whose license has been revoked; and
(B) who has not fully satisfied the warehouse operator's
storage obligation to the depositor, after any outstanding
charges against the grain.
(34) "Subsidiary" means an entity, including a general
partnership or joint venture, that is owned in whole or part by
one (1) or more other entities, including at least one (1) entity
that constitutes a parent entity.
(30) "Suspension" means a temporary halt to the purchase of grain
under section 18(b) of this chapter.
(31) (35) "Ticket" means a scale weight ticket, a load slip, or
other evidence, other than a receipt, given to a depositor upon
initial delivery of grain to a facility.
(32) (36) "Warehouse act" means the United States Warehouse
Act, approved August 11, 1916 (39 Stat. 486; 7 U.S.C. 241-273
as amended).
(33) (37) "Warehouse" means any building or other protected
enclosure in one (1) general location licensed or required to be
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licensed under this chapter, which building or other protected
enclosure is operated under one (1) ownership and run from
a single office, and in which grain is or may be:
(A) stored for hire;
(B) used for grain bank storage; or
(C) used to store company owned grain.
and the building or other protected enclosure is operated under
one (1) ownership and run from a single office.
(34) (38) "Warehouse operator" means a person that operates a
facility or group of facilities in which grain is or may be stored for
hire or which is used for grain bank storage and which is operated
under one (1) ownership and run from a single office.
SECTION 3. IC 26-3-7-3, AS AMENDED BY P.L.208-2021,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The director may do the following:
(1) Require any reports that are necessary to administer this
chapter.
(2) Administer oaths, issue subpoenas, compel the attendance and
testimony of witnesses, and compel the production of records in
connection with any investigation, informal meeting, or hearing
under this chapter.
(3) Prescribe all forms within the provisions of this chapter.
(4) Establish grain standards in accordance with the grain
standards act and federal regulations promulgated under that act
that must be used by warehouses.
(5) Investigate the activities required by this chapter including the
storage, shipping, marketing, and handling of grain and
complaints with respect to the storage, shipping, marketing, and
handling of grain.
(6) Inspect a facility, the grain stored in a facility, and all property
and records pertaining to a facility. All inspections of an applicant
or licensee under this chapter must take into consideration the
proprietary nature of an applicant's or licensee's commercial
information. The director may adopt rules under IC 4-22-2
regarding inspections permitted under this chapter, and the rules
must take into consideration the proprietary nature of an
applicant's or a licensee's commercial information. This chapter
does not authorize the inspection of an applicant's or licensee's
trade secret or intellectual property information.
(7) Determine whether a facility for which a license has been
applied for or has been issued is suitable for the proper storage,
shipping, and handling of the grain that is stored, shipped, or
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handled, or is expected to be stored, shipped, or handled.
(8) Require a licensee to terminate storage, shipping, marketing,
and handling agreements upon revocation of the person's a
license.
(9) Attend and preside over any investigation, informal meeting,
or hearing allowed or required under this chapter.
(10) Impose sanctions for violations of this article.
(11) Require a grain buyer and all persons purchasing grain to
show evidence of training or licensing on the risks associated with
grain marketing practices only if a grain buyer engages in a risk
factor higher than a standard defined by the director. This training
or licensing may include requiring the grain buyer or person
purchasing grain to do any of the following:
(A) Provide the agency with proof of registry with the
commodity futures trading commission (CFTC) as a
commodity trading adviser, a futures commission merchant, an
introducing broker, or an associated person.
(B) Demonstrate passage of the series 3 examination
administered by the National Futures Association.
(C) Annually attend six (6) hours of continuing education,
approved by the director, focusing on the risks to a grain buyer
and seller that are associated with grain marketing practices
and the communication of risks to the producer. Additionally,
as part of continuing education, require a grain buyer, and all
persons purchasing grain for a grain buyer, to pass a test,
approved and administered by the director, that reasonably
measures the grain buyer's understanding of the risks to grain
buyers and sellers associated with producer marketing
strategies.
(12) (11) Require all contracts executed after August 31, 2017,
for the purchase of grain from producers, except a flat price
contract or a contract for the production of seed, to include the
following notice immediately above the place on the contract
where the seller of the grain must sign:
"NOTICE - SELLER IS CAUTIONED THAT
CONTRACTING FOR THE SALE AND DELIVERY OF
GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE
FUTURE PAYMENTS BY YOU TO MAINTAIN THIS
CONTRACT, A LOWER SALES PRICE, AND OTHER
RISKS NOT SPECIFIED.
INDIANA STATE LAW REQUIRES THAT AFTER JULY 1,
2022, ALL DEFERRED PRICED GRAIN MUST BE PRICED
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WITHIN THE CROP YEAR AS DEFINED BY
IC 26-3-7-2(7). THIS CONTRACT MUST BE PRICED BY
_(Insert Date)_.
COVERAGE UNDER THE INDIANA GRAIN INDEMNITY
PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED
TO A FIRST PURCHASER LICENSEE WITHIN THE 15
MONTHS BEFORE THE DATE OF FAILURE THE
REVOCATION OF A LICENSE AND IS LIMITED TO
100% OF A LOSS FOR STORED GRAIN AND 80% OF A
LOSS FOR OTHER COVERED CONTRACTS.
BE SURE YOU UNDERSTAND THE NATURE OF THIS
CONTRACT AND THE ASSOCIATED RISKS.".
(13) (12) Require all contracts executed after January 1, 2000, for
the production of seed to include the following notice, in
conspicuous letters, immediately above the place on the contract
or an addendum where the seller of the seed must sign:
"NOTICE - IF THE TERMS OF THIS CONTRACT STATE
THAT THE CONTRACTOR RETAINS OWNERSHIP OF
THE SEED AND ITS PRODUCTS, YOU MAY NOT BE
ELIGIBLE FOR PARTICIPATION IN THE INDIANA
GRAIN INDEMNITY PROGRAM. TO BE ELIGIBLE TO
PARTICIPATE IN THE INDIANA GRAIN INDEMNITY
PROGRAM, FARMERS MUST OWN AND SELL GRAIN
OR SEED. BE SURE YOU UNDERSTAND THE NATURE
OF THIS CONTRACT AND THE ASSOCIATED RISKS.".
(14) (13) At any time, order an unannounced audit for compliance
with this article.
(15) Adopt rules under IC 4-22-2 to carry out the purposes and
intent of this chapter.
(16) (14) Require all grain buyers offering deferred pricing,
delayed payments, or contracts linked to the commodity futures
or commodity options market in connection with a grain purchase
to document the agreement in writing not more than twenty-one
(21) days after delivery.
(17) (15) Receive and consider financial audits of a licensee
conducted by an independent audit or accounting firm.
(18) (16) Share information with board members regarding the
financial status of a licensee, while the board is in executive
session and without disclosing the name or any other identifying
information of the licensee, including the following:
(A) Whether there is a risk that a licensee licensee's license
may fail. be revoked.
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(B) The financial impact to the fund if a licensee identified in
clause (A) were to fail. have the licensee's license revoked.
(C) The estimated number of potential claimants that could
result from the failure revocation of a licensee identified in
clause (A).
(D) Any other information the director determines is necessary
to solicit the advice of the board regarding the financial status
of a licensee.
However, the director may not share information under this
subdivision with a board member who has not executed a
confidentiality agreement.
(19) Adopt rules under IC 4-22-2 regarding fines for violations of
this chapter.
(b) The director shall do the following:
(1) Establish standards to ensure that a grain buyer has a suitable
financial position to conduct a business as a grain buyer.
(2) Require a person who conducts business as a grain buyer to
first be licensed by the agency.
(3) Require any person engaged in the business of advising
producers on grain marketing for hire to:
(A) register with the agency; and
(B) provide the agency with proof of registry with the
commodity futures trading commission (CFTC) as a
commodity trading advisor, a futures commission merchant, an
introducing broker, or an associated person.
(c) The director may designate an employee to act for the director
in the administration of this chapter. An employee designee may not:
(1) act in matters that require a public hearing or the temporary
suspension of a license;
(2) (1) adopt rules; or
(3) (2) act as the ultimate authority in the administration of this
chapter.
(d) The director may designate an administrative law judge to act for
the director in the administration of this chapter.
(e) The director may determine whether geographically separate
facilities constitute a single warehouse or grain buyer and in making
the determination may consider the following:
(1) The number of facilities involved.
(2) Whether full weighing equipment is present at the
geographically separate facilities.
(3) The method of bookkeeping employed by the separate
facilities.
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(4) The hours of operation of the separate facilities.
(5) The personnel employed at the separate facilities.
(6) Other factors the director deems relevant.
(f) For purposes of determining whether a building or other
protected enclosure constitutes a single warehouse that requires a
single license under this chapter, the director may consider the
following:
(1) The presence of a full weighing facility at geographically
diverse warehouse facilities.
(2) The traditional method of record keeping with respect to
the separate facilities.
(3) The hours, number of personnel, and activities of the
separate facilities.
(4) Any other factor considered relevant.
In the absence of contradictory information, any warehouses
owned and operated by the same person that are located within
close proximity of each other are presumed to constitute a single
warehouse.
(f) (g) The director and the director's designees designated
representative shall become members of the national grain regulatory
organization and shall:
(1) work in partnership with other state grain regulatory officials;
(2) participate in national grain regulatory meetings; and
(3) provide expertise and education at national meetings.
(g) (h) The director shall engage an independent third party firm to
conduct a performance review of the agency's auditing practices and
procedures at least once every five (5) years. The agency shall make
reasonable efforts to implement any corrective measures identified in
the performance review to enhance and improve the agency's auditing
practices and procedures. The agency shall make the findings of the
performance review available to the board.
(h) (i) The director may subpoena or require that certain records
located outside Indiana, if any, be brought to a specified location in
Indiana for review by the agency.
SECTION 4. IC 26-3-7-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 3.5. When computing any period of time under this
chapter, including the time of service of a notice, the computation
must comply with IC 4-21.5-3-2.
SECTION 5. IC 26-3-7-4, AS AMENDED BY P.L.60-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) A person may not operate a warehouse or
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conduct business as a grain buyer or buyer-warehouse without first
having obtained the appropriate license from the agency. nor may a
person or entity associated with the person continue to operate a
warehouse or conduct business as a grain buyer or buyer-warehouse
after the person's license has been revoked or suspended, except as
provided in section 18 of this chapter.
(b) All facilities in Indiana that an applicant for a license uses to
store or handle grain must qualify for and obtain a license and be
licensed under this chapter before the applicant may operate a
warehouse or conduct business as a grain buyer in Indiana. An
applicant may not be licensed unless all of the applicant's facilities
qualify for a license under this chapter. An applicant for a license must
apply to the agency for a license that covers all facilities operated by
the applicant for the storage or handling of grain in Indiana.
(b) A person may not be licensed to operate a particular facility
unless all facilities operated by the person in Indiana also qualify
to be and are licensed under this chapter. A person that operates
multiple facilities for the storage or handling of grain in Indiana
must obtain a license that covers all facilities operated by the
person.
(c) A person may not represent that the person is licensed under
this chapter, and may not use a name or description that conveys
an impression that the person is licensed under this chapter, unless
the person holds a valid license issued under this chapter that has
not been terminated.
(c) (d) If a licensee acquires an additional grain storage or handling
facility in Indiana, the licensee shall promptly submit to the agency an
amended application for licensure. A licensee shall promptly notify the
agency of a material change to the licensee's operations, such as
expansion of the amount of storage being used in the licensee's existing
facilities or change of ownership of a facility, and shall provide the
director with additional information the director may require. A
licensee shall obtain the approval of the director before making use of
increased storage or handling capacity.
(d) (e) A licensee that acquires an additional grain storage or
handling facility that is required to be licensed shall may not use the
facility for the storage or handling of grain until it qualifies for and is
issued a license and is licensed as provided in this chapter. If a licensed
grain storage or handling facility that a licensee operates in Indiana
becomes ineligible for a license at any time for any reason, it shall the
facility may not be used for the storage or handling of grain until the
condition making it ineligible is removed.
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(e) A licensee shall maintain at least eighty percent (80%) of the
unpaid balance of grain payables in unencumbered assets represented
by the aggregate of the following:
(1) Company owned grain.
(2) Cash on hand.
(3) Cash held on account in federally or state licensed financial
institutions or lending institutions of the Federal Farm Credit
Administration.
(4) Investments held in time accounts with federally or state
licensed financial institutions.
(5) Direct obligations of the United States government.
(6) Balances in grain margin accounts determined by marking to
market.
(7) Balances due or to become due to the licensee on deferred
pricing contracts.
(8) Marketable securities, including mutual funds.
(9) Irrevocable letters of credit that are:
(A) in favor of the agency;
(B) acceptable to the agency; and
(C) in addition to any letter of credit deposited with the
director to satisfy the bonding requirement of this chapter.
(10) Deferred pricing contract service charges due or to become
due to the licensee.
(11) Other evidence of proceeds from or of grain that is
acceptable to the agency.
(12) Seed inventory.
(13) Other assets approved by the director.
(f) A licensee must have the minimum positive net worth specified
in section 16 of this chapter to hold any license or do business.
SECTION 6. IC 26-3-7-4.1, AS AMENDED BY P.L.145-2017,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4.1. (a) The agency shall mail by first class mail
or send electronically a renewal application, which must include a
listing of all the licensee's facilities, to each licensee before the end of
the licensee's fiscal year. The renewal application form must be
completed and returned to the agency not later than ninety (90) days
after the end of the licensee's fiscal year. The licensee must forward,
with the renewal application, the following:
(1) Current reviewed review level or audit level financial
statement that:
(A) is prepared by an independent accountant certified
under IC 25-2.1; and
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(B) complies with generally accepted United States
accounting principles.
(2) Updated financial profile form supplied by the agency.
(3) Appropriate license fee.
(b) A renewal application must contain the information as required
under rules adopted by the agency. The licensee shall receive an annual
renewal license application form appropriate to the license issued to the
licensee. The annual renewal license application forms are for a:
(1) grain bank;
(2) warehouse;
(3) grain buyer; or
(4) buyer-warehouse.
SECTION 7. IC 26-3-7-4.2, AS ADDED BY P.L.145-2017,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4.2. (a) If an applicant for a license or a renewal
of a license issued under this chapter does not regularly conduct
business at an a street address at which the applicant usually can be
contacted in Indiana, the applicant shall include with the applicant's
application a written appointment of a registered agent for service of
process, notice, or demand.
(b) The appointment in subsection (a) must be accompanied by a
written acceptance of the appointment by the registered agent. The
designation of a registered agent and requirements for a registered
agent must comply with the requirements under IC 23-0.5-4.
(c) The registered agent must be an individual who is a resident of
Indiana or a corporation whose principal place of business is located in
Indiana.
(d) The appointment must be made in the form and manner
prescribed by the director.
(e) If a registered agent resigns or relocates from Indiana or the
applicant revokes the registered agent's appointment, the applicant
shall:
(1) immediately notify the director in writing not later than thirty
(30) days before the resignation, relocation, or revocation; and
(2) file with the director a written appointment of another
registered agent, along with a written acceptance of the
appointment signed by the registered agent.
(f) If a registered agent dies or is incapacitated, the applicant shall:
(1) immediately notify the director in writing of the death or
incapacity;
(2) not later than thirty (30) days after the death or incapacity,
appoint another registered agent; and
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(3) file with the director a written appointment of the other
registered agent, along with a written acceptance of the
appointment signed by the registered agent.
(g) Failure to comply with this section is grounds for denial,
suspension, or revocation of a license.
SECTION 8. IC 26-3-7-4.4 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4.4. (a) The agency shall issue the following types of
licenses:
(1) A grain bank license may be issued to a person that:
(A) stores only grain bank grain;
(B) has a storage capacity of not more than fifty thousand
(50,000) bushels of grain; and
(C) purchases less than fifty thousand (50,000) bushels of
grain per year.
(2) A warehouse license may be issued to a person that:
(A) stores grain for hire; and
(B) purchases less than fifty thousand (50,000) bushels of
grain per year.
(3) A grain buyer license may be issued to a person that:
(A) purchases annually at least fifty thousand (50,000)
bushels of grain that are not for the sole purpose of feeding
the person's own livestock or poultry;
(B) chooses to obtain a grain buyer's license; or
(C) offers deferred pricing, delayed payments, or contracts
linked to the commodity futures or commodity options
market in connection with grain purchases.
(4) A buyer-warehouse license may be issued to a person that
operates both as a warehouse and as a grain buyer.
(b) An applicant shall file with the director a separate
application for each license or amendment of a license at the times,
on the forms, and containing the information that the director
prescribes.
(c) An initial application for a license must be accompanied by
a license fee as follows:
(1) For a grain bank or for a warehouse or buyer-warehouse
with a storage capacity of less than two hundred fifty
thousand (250,000) bushels, one thousand dollars ($1,000) for
the first facility and two hundred fifty dollars ($250) for each
additional facility.
(2) For a warehouse or a buyer-warehouse with a storage
capacity of at least two hundred fifty thousand (250,000)
SEA 461 — Concur
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bushels but less than one million (1,000,000) bushels, one
thousand five hundred dollars ($1,500) for the first facility
and two hundred fifty dollars ($250) for each additional
facility.
(3) For a warehouse or a buyer-warehouse with a storage
capacity of at least one million (1,000,000) bushels but less
than ten million (10,000,000) bushels, two thousand dollars
($2,000) for the first facility and two hundred fifty dollars
($250) for each additional facility.
(4) For a warehouse or buyer-warehouse with a storage
capacity greater than ten million (10,000,000) bushels, two
thousand five hundred dollars ($2,500) for the first facility
and two hundred fifty dollars ($250) for each additional
facility.
(5) For a grain buyer, including a grain buyer that is also
licensed as a warehouse under the warehouse act, one
thousand five hundred dollars ($1,500) for the first facility
and two hundred fifty dollars ($250) for each additional
facility.
The director may prorate the initial application fee for a license
that is issued at least thirty (30) days after the anniversary date of
the licensee's business.
(d) Before the anniversary date of the license, the licensee shall
pay an annual fee in an amount equal to the amount required
under subsection (c). The director may prorate the annual
application fee for a license that is modified at least thirty (30) days
after the anniversary date of the licensee's license.
(e) A licensee or an applicant for an initial license must have a
minimum current asset to current liability ratio of one to one (1:1)
or better.
(f) An applicant for an initial license shall submit with the
person's application a review level financial statement or better
financial statement that reflects the applicant's financial situation
on a date not more than fifteen (15) months before the date on
which the application is submitted. A financial statement submitted
under this section must:
(1) be prepared by an independent accountant certified under
IC 25-2.1;
(2) comply with generally accepted United States accounting
principles; and
(3) contain:
(A) an income statement;
SEA 461 — Concur
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(B) a balance sheet;
(C) a statement of cash flow;
(D) a statement of retained earnings;
(E) an aged accounts receivable listing detailing accounts
that are ninety (90) days due, one hundred twenty (120)
days due, and more than one hundred twenty (120) days
due;
(F) a copy of the daily position record for the end of the
licensee's fiscal year;
(G) the preparer's notes; and
(H) other information the agency may require.
(g) If a licensee's storage capacity changes between license
renewals, the agency shall charge the licensee a fee of two hundred
fifty dollars ($250).
(h) An application for a license implies a consent to be inspected.
(i) Fees collected under this section shall be deposited in the
grain buyers and warehouse licensing agency license fee fund
established by section 6.3 of this chapter.
SECTION 9. IC 26-3-7-4.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4.7. (a) If a licensee desires to relinquish its license
issued under this chapter, the licensee shall submit a written
request to the director to relinquish the license. The relinquishment
request must include a certification from the licensee that the
licensee:
(1) has fully satisfied all payment obligations to all producers
for any grain purchased by the licensee including any
payment obligations under any contract, deferred pricing
agreement, deferred payment agreement, or other similar
legal instrument;
(2) has no outstanding storage obligations to any licensee or
person;
(3) is not party to any contract, deferred pricing agreement,
basis contract, hold-pay agreement, or other similar legal
instrument under which grain will be delivered to the
licensee; and
(4) either does not have receipts in its possession or, if the
licensee has receipts in its possession, the receipts are enclosed
or will be provided to the director or the director's designated
representative to facilitate the recovery of unused receipts
under section 30 of this chapter.
(b) The relinquishment request must include a list of all known
SEA 461 — Concur
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customers of the licensee in the preceding eighteen (18) months and
the last known telephone numbers and mailing addresses of each
person identified.
(c) The agency shall send a notice to each known customer of the
licensee from the list provided in subsection (b) for the preceding
eighteen (18) months.
(d) Before the director may grant the licensee's relinquishment
request the agency shall perform a closeout audit of the licensee.
SECTION 10. IC 26-3-7-6 IS REPEALED [EFFECTIVE JULY 1,
2025]. Sec. 6. (a) The agency shall issue the following licenses:
(1) A grain bank license may be issued to a person that:
(A) stores only grain bank grain;
(B) has a storage capacity of not more than fifty thousand
(50,000) bushels of grain; and
(C) purchases less than fifty thousand (50,000) bushels of
grain per year.
(2) A warehouse license may be issued to a person that:
(A) stores grain for hire; and
(B) purchases less than fifty thousand (50,000) bushels of
grain per year.
(3) A grain buyer license may be issued to a person that:
(A) purchases annually at least fifty thousand (50,000) bushels
of grain that are not for the sole purpose of feeding the
person's own livestock or poultry;
(B) chooses to obtain a grain buyer's license; or
(C) offers deferred pricing, delayed payments, or contracts
linked to the commodity futures or commodity options market
in connection with grain purchases.
(4) A buyer-warehouse license may be issued to a person that
operates both as a warehouse and as a grain buyer.
(b) An applicant shall file with the director a separate application
for each license or amendment of a license at the times, on the forms,
and containing the information that the director prescribes.
(c) An initial application for a license must be accompanied by a
license fee as follows:
(1) For a grain bank or for a warehouse or buyer-warehouse with
a storage capacity of less than two hundred fifty thousand
(250,000) bushels, one thousand dollars ($1,000) for the first
facility and two hundred fifty dollars ($250) for each additional
facility.
(2) For a warehouse or a buyer-warehouse with a storage capacity
of at least two hundred fifty thousand (250,000) bushels but less
SEA 461 — Concur
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than one million (1,000,000) bushels, one thousand five hundred
dollars ($1,500) for the first facility and two hundred fifty dollars
($250) for each additional facility.
(3) For a warehouse or a buyer-warehouse with a storage capacity
of at least one million (1,000,000) bushels but less than ten
million (10,000,000) bushels, two thousand dollars ($2,000) for
the first facility and two hundred fifty dollars ($250) for each
additional facility.
(4) For a warehouse or buyer-warehouse with a storage capacity
greater than ten million (10,000,000) bushels, two thousand five
hundred dollars ($2,500) for the first facility and two hundred
fifty dollars ($250) for each additional facility.
(5) For a grain buyer, including a grain buyer that is also licensed
as a warehouse under the warehouse act, one thousand five
hundred dollars ($1,500) for the first facility and two hundred
fifty dollars ($250) for each additional facility.
The director may prorate the initial application fee for a license that is
issued at least thirty (30) days after the anniversary date of the
licensee's business.
(d) Before the anniversary date of the license, the licensee shall pay
an annual fee in an amount equal to the amount required under
subsection (c). The director may prorate the annual application fee for
a license that is modified at least thirty (30) days after the anniversary
date of the licensee's license.
(e) A licensee or an applicant for an initial license must have a
minimum current asset to current liability ratio of one to one (1:1) or
better.
(f) An applicant for an initial license shall submit with the person's
application a review level financial statement or better financial
statement that reflects the applicant's financial situation on a date not
more than fifteen (15) months before the date on which the application
is submitted. A financial statement submitted under this section must:
(1) be prepared by an independent accountant certified under
IC 25-2.1;
(2) comply with generally accepted accounting principles; and
(3) contain:
(A) an income statement;
(B) a balance sheet;
(C) a statement of cash flow;
(D) a statement of retained earnings;
(E) an aged accounts receivable listing detailing accounts that
are ninety (90) days due, one hundred twenty (120) days due,
SEA 461 — Concur
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and more than one hundred twenty (120) days due;
(F) a copy of the daily position record for the end of the
licensee's fiscal year;
(G) the preparer's notes; and
(H) other information the agency may require.
The director may adopt rules under IC 4-22-2 to allow the agency to
accept other substantial supporting documents instead of those listed
to determine the financial solvency of the applicant if the director
determines that providing the listed documents creates a financial or
other hardship on the applicant or licensee.
(g) If a licensee's storage capacity changes between license
renewals, the agency shall charge the licensee a fee of two hundred
fifty dollars ($250).
(h) An application for a license implies a consent to be inspected.
(i) Fees collected under this section shall be deposited in the grain
buyers and warehouse licensing agency license fee fund established by
section 6.3 of this chapter.
SECTION 11. IC 26-3-7-6.1, AS AMENDED BY P.L.134-2015,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6.1. (a) Not more than ninety (90) days after the
end of a licensee's fiscal year, the licensee shall file with the agency a
current review level financial statement or better financial statement
that reflects the licensee's financial situation for the previous fiscal
year. The financial statement must be submitted with the licensee's
renewal forms and fees.
(b) (a) A financial statement submitted under this section chapter
must comply with the following:
(1) Be prepared by an independent accountant certified under
IC 25-2.1.
(2) Comply with generally accepted United States accounting
principles. and
(3) Be at a review level or audit level.
(3) (4) Contain:
(A) an income statement;
(B) a balance sheet;
(C) a statement of cash flow;
(D) a statement of retained earnings;
(E) an aged accounts receivable listing detailing accounts that
are ninety (90) days due, one hundred twenty (120) days due,
and more than one hundred twenty (120) days due;
(F) a copy of the daily position record for the end of the
licensee's fiscal year;
SEA 461 — Concur
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(G) (E) the preparer's notes; and
(H) (F) other information the agency requires.
(5) An aged accounts receivable listing detailing accounts that
are ninety (90) days due, one hundred twenty (120) days due,
and more than one hundred twenty (120) days due.
(6) A copy of the daily position record for the end of the
licensee's fiscal year.
The director may adopt rules under IC 4-22-2 to allow the agency to
accept other substantial supporting documents instead of those listed
to determine the financial solvency of the applicant if the director
determines that providing the listed documents creates a financial or
other hardship on the applicant or licensee.
(c) If the licensee has failed to timely file the financial statement,
renewal form, or renewal fee as required in subsection (a), the agency
may assess a fine as follows:
(1) Fifty percent (50%) of the licensee's renewal fee for a
financial statement, renewal form, or renewal fee that is at least
one (1) day and not more than sixty (60) days late.
(2) One hundred percent (100%) of the licensee's renewal fee for
a financial statement, renewal form, or renewal fee that is more
than sixty (60) days late.
(d) The agency may file a notice of hearing for any fines assessed
under subsection (c).
(b) If a person, an applicant, or a licensee is the subsidiary of a
parent entity, and financial statements are not prepared by or for
the person, applicant, or licensee in the ordinary course of
business, the director may consider the following to be the
equivalent of a review level or audit level financial statement, for
purposes of this section:
(1) Either:
(A) a compilation level financial statement prepared in
accordance with generally accepted United States
accounting principles by an independent accountant
certified under IC 25-2.1; or
(B) an audited or review level financial statement of the
parent entity, current as of its most recent fiscal year end,
that is in full compliance with the requirements of this
section.
(2) An unconditional guaranty of the parent entity in the form
required by the agency, with a term of at least one (1) year,
under which the parent entity agrees without condition to
satisfy in full any and all existing and future monetary
SEA 461 — Concur
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obligations of the person, applicant, or licensee covered by all
applicable licenses covered under this chapter.
(c) Except as provided in subsection (e), for any particular
person, applicant, or licensee, the director may consider the
following documents and materials, taken together, to be the
equivalent of a compilation level, review level, or audit level
financial statement for purposes of this section after making the
determination required under subsection (b):
(1) Copies of state and federal tax returns for the person,
applicant, or licensee, for the two (2) years before the most
recent fiscal year of the person, applicant, or licensee.
(2) Copies of state and federal tax returns for the principals,
members, shareholders, or other owners of or stakeholders in
the person, applicant, or licensee.
(3) Current reports or similar accounting documents showing
all outstanding payables and receivables, with each due date
and party, including contact information.
(4) A business plan covering the next five (5) fiscal years of the
person, applicant, or licensee and signed by a principal,
member, shareholder, owner, or executive or other officer of
the person, applicant, or licensee.
(5) A proposed agreement between the person, applicant, or
licensee and the agency, in the form required by the agency,
where the person, applicant, or licensee agrees to use certain
risk management practices, which the director determines are
necessary or appropriate under the circumstances, to mitigate
the risk of loss by the person, applicant, or licensee in the
futures or options market.
(6) Other documents or materials as the director may by rule
identify.
(d) If a financial statement is required under this chapter, a
person, applicant, or licensee may submit the equivalent of a
review level or audit level financial statement under subsection (b)
or (c) if the person, applicant, or licensee obtains preapproval from
the director before the financial statement is or would be required
to be submitted under this chapter and complies with the
following:
(1) At least forty-five (45) days before the financial statement
is or would be required to be submitted under this chapter,
the person, applicant, or licensee submits to the director a
letter regarding the financial statement requirement that
includes the following:
SEA 461 — Concur
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(A) Identifies the person, applicant, or licensee submitting
the letter and each section of this chapter that the person,
applicant, or licensee is or will be required to submit a
financial statement.
(B) Encloses all the documents and materials required
under subsection (b) or (c).
(C) A detailed explanation regarding why, under the
particular circumstances, the director should consider all
the documents and materials required under subsection (b)
or (c), as submitted, to be the equivalent of a review level
or audit level financial statement.
(D) States whether the person, applicant, or licensee is
seeking to submit the documents and materials required
under subsection (b) or (c) only once, in perpetuity, or for
some other set period.
(E) Sets forth contact information for the person,
applicant, or licensee.
(2) Upon receipt by the director of a letter under subdivision
(1), the director shall do the following:
(A) Conduct a review of the letter and its enclosures,
including contacting the person, applicant, or licensee if
necessary and reviewing any other documents,
information, or other materials already available to the
director.
(B) Determine whether the enclosures should be considered
to be the equivalent of a review level or audit level
financial statement under the circumstances and for the
reasons set forth in the letter.
(C) Issue a notice of financial statement determination to
the person, applicant, or licensee that sets forth the
director's determination under clause (B), that includes the
reasons under subdivision (3), and whether the
determination will apply only once, in perpetuity, or for
another set period, as determined by the director.
(3) In reviewing the letter and its enclosures to make the
determination under subdivision (2)(A) and (2)(B), the
director shall consider the following:
(A) Whether the documents and materials required under
subsection (b) or (c), as submitted by the particular person,
applicant, or licensee, adequately supply the director and
the agency with sufficient information regarding the
person, applicant, or licensee for the agency to perform its
SEA 461 — Concur
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statutory functions under this chapter with respect to the
person, applicant, or licensee.
(B) Whether it would be reasonable and appropriate for
the director to continue to accept the documents and
materials required under subsection (b) or (c) from the
person, applicant, or licensee, in perpetuity or for some
other set period, including, the length of the guaranty
required under subsection (b)(2).
(4) Any letter under subdivision (1) and any response under
subdivisions (2) and (3), including the director's
determination under subdivisions (2)(B) and (3), applies only
to the person, applicant, or licensee that submitted the letter
under subdivision (1).
(e) The director may not accept documents and materials listed
in subsection (c) to be the equivalent of a review level or audit level
financial statement from a person, an applicant, or a licensee if the
person, applicant, or licensee offers:
(1) deferred pricing;
(2) delayed payments; or
(3) contracts linked to the commodity futures or commodity
options market in connection with grain purchases.
SECTION 12. IC 26-3-7-6.3, AS AMENDED BY P.L.208-2021,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6.3. (a) The grain buyers and warehouse licensing
agency license fee fund is established to provide funds for the
administration of this chapter and IC 26-3-7.5. The fund shall be
administered by the agency. The fund consists of:
(1) the moisture testing device inspection fees collected under
IC 15-11-8-3; IC 26-3-7.5-6;
(2) the licensing fees collected under section 6 section 4.4 of this
chapter;
(3) the fines collected under this chapter;
(4) gifts and bequests; and
(5) appropriations made by the general assembly.
(b) Expenses of administering the fund shall be paid from money in
the fund.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited in the fund.
(d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
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SECTION 13. IC 26-3-7-6.5, AS AMENDED BY P.L.208-2021,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6.5. (a) The names, locations, respective counties,
and license status of licensees may be disclosed.
(b) Unless in accordance with a judicial order, the director, the
agency, its counsel, auditors, or its other employees or agents shall not
divulge any other information disclosed by the applications or reports
filed or inspections performed under the provisions of this chapter.
However, information may be divulged to agents and employees of the
agency, the board, as required by subsection (d), the state board of
accounts or another entity retained under subsection (f), or to any other
legal representative of the state or federal government otherwise
empowered to see or review the information.
(c) Except as provided in subsection (d), the director may disclose
the information described in subsection (b) only in the form of an
information summary or profile, or statistical study based upon data
provided with respect to more than one (1) warehouse, grain buyer, or
buyer-warehouse that does not identify the warehouse, grain buyer, or
buyer-warehouse to which the information applies.
(d) The director shall disclose to the board, while the board is in
executive session, the status and inspection results of any licensee who
that poses a significant risk of failure the director revoking the
licensee's license or who that has failed to meet the minimum
requirements in section 4(e) or 16 14.4 of this chapter. The director
may not include any identifying information regarding the licensee.
The director may not disclose the information to a board member who
has not executed a confidentiality agreement presented by the agency.
(e) The director shall provide the board with records of previous
failures license revocations to analyze the factors that have led to
previous failures. licenses being revoked.
(f) The director may use the services of the state board of accounts
or retain another entity to assist the agency in investigating any audit
results or other factors which indicate the potential for a licensee
failure. the revocation of a licensee's license. The director may seek
the advice and guidance of the board on selecting an entity or on any
other matter.
SECTION 14. IC 26-3-7-6.8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 6.8. (a) A person that desires to conduct business as
a grain buyer, warehouse operator, or buyer-warehouse in Indiana
shall submit to the director the following:
(1) A completed license application in the form required by
SEA 461 — Concur
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the agency.
(2) A financial statement that complies with the requirements
of this chapter and that reflects the applicant's financial
situation on a date not more than fifteen (15) months before
the date the applicant first submits any of the license
application materials required under this subsection.
(3) A completed certificate of deposit, a bond, or other
security, in the form required by the agency, and proof of the
deposit, bond, or other security sufficient to demonstrate
compliance with the requirements of this section, including, as
applicable, complete and accurate copies of all instruments,
documents, or materials related to the deposit, bond, or other
security.
(4) A completed certificate of insurance, in the form required
by the agency, and proof of insurance sufficient to
demonstrate compliance with the requirements of this section.
(5) Proof of compliance with the scale certification
requirements.
(6) A certificate of good standing or other documentation
sufficient to demonstrate that the applicant is licensed to do
business in Indiana, including a current copy of the
applicant's business information that is maintained by the
secretary of state.
(7) Examples of grain delivery tickets, settlement sheets,
purchase agreements, storage agreements, and other similar
agreements that comply with the requirements of this chapter,
that are to be used by the applicant in conducting business as
a licensee in Indiana.
(8) Any other documentation that the director determines is
necessary to demonstrate that the applicant is in compliance
with the requirements for a license under this chapter.
(b) Within ninety (90) days of the receipt of all license
application materials required under subsection (a), the director
or director's designated representative shall review the license
application and determine whether the applicant has demonstrated
compliance with the requirements for a license under this chapter.
(c) An on-premises inspection of each applicable facility located
within Indiana is required.
(d) The application must be denied if the applicant is not in full
compliance with this chapter.
(e) If a license application is denied for any reason under this
section, the notice of denial must set forth each reason for the
SEA 461 — Concur
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denial, including any failure by the applicant to comply with the
requirements of this chapter.
(f) An applicant may appeal a decision of the director to deny a
license under IC 4-21.5-3.
SECTION 15. IC 26-3-7-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) The director may
issue or amend a license after the director has:
(1) received and approved the required information and
documentation; and
(2) determined that:
(A) the facility or facilities covered by the application are
suitable for the proper storage or handling of the grain
intended to be stored or handled in the facility or facilities; and
(B) the applicant has complied with this chapter and the rules
adopted under this chapter.
(b) A person may not represent that the person is licensed under this
chapter, and may not use a name or description that conveys the
impression that the person is licensed, in a receipt or otherwise, unless
the person holds an unsuspended and unrevoked license to conduct the
business indicated by the license.
(c) (a) An applicant for a license under this chapter must show that
the applicant:
(1) has a good business reputation;
(2) has not been involved in improper manipulation of books and
records or other improper business practice;
(3) (1) has the qualifications and background essential for the
conduct of the business to be licensed;
(4) employs management and principal officers that have suitable
business reputations, background, and qualifications to perform
their duties;
(5) (2) has not been found guilty of a crime that would affect the
licensee's ability to conduct business with integrity; involving
illegal activities that involve money, assets, or financial tools
for personal gain; and
(6) (3) does not employ an officer, director, partner, or manager
that has been found guilty of a crime that would affect the
licensee's ability to conduct business with integrity. involving
illegal activities that involve money, assets, or financial tools
for personal gain.
(b) The agency may deny a license to an applicant that has been
involved in improper business practices.
SECTION 16. IC 26-3-7-8 IS REPEALED [EFFECTIVE JULY 1,
SEA 461 — Concur
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2025]. Sec. 8. Upon receipt of an application for a permanent license,
the director may issue a temporary license to the applicant for a
reasonable time, not to exceed ninety (90) days, as the director deems
necessary or advisable to enable the applicant to comply with the
further requirements for obtaining a license under this chapter. A
temporary license entitles the temporary licensee to the same rights and
subjects the temporary licensee to the same duties as if the temporary
licensee had a permanent license.
SECTION 17. IC 26-3-7-8.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 8.5. (a) If the
ownership of a facility or business licensed under this chapter passes
to a successor owner, the obligations under this chapter of the original
licensee do not cease until the successor owner is properly licensed and
has executed a successor's agreement with the agency.
(b) A license issued under this chapter is not transferable or
assignable to any person, including successors in interest to the
licensee.
SECTION 18. IC 26-3-7-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) Each applicant
for a license under this chapter shall, as a condition of licensure, file or
have on file with the director:
(1) a cash deposit;
(2) an irrevocable letter of credit;
(3) a bond; or
(4) any combination of the above;
as provided in section 10 of this chapter.
(b) A bond filed under this chapter shall:
(1) be conditioned upon the faithful performance of all obligations
of the licensee under this chapter and the rules adopted under this
chapter from the effective date of the bond until the earlier of the
date the license is revoked or the bond is canceled as provided in
this chapter; and
(2) be further conditioned upon the faithful performance of all
obligations from the effective date of the bond and thereafter,
regardless of whether the licensee's facility or facilities exist on
the effective date of the bond or are thereafter assumed prior to
the date the licensee's license is revoked or the bond is canceled
as provided in this chapter.
(c) The bond must remain in effect during a violation a temporary
suspension of the licensee's license, or a period during which the
licensee is subject to a cease and desist order.
SECTION 19. IC 26-3-7-10, AS AMENDED BY P.L.208-2021,
SEA 461 — Concur
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SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) The minimum amount of bond, letter of
credit, or cash deposit required from a licensee is as follows:
(1) For a grain bank license or a warehouse license:
(A) fifty thousand dollars ($50,000); and
(B) ten cents ($0.10) multiplied by the licensed bushel storage
capacity of the grain bank or warehouse.
(2) For a grain buyer, including a grain buyer that is also a
licensee under the warehouse act:
(A) fifty thousand dollars ($50,000); or
(B) five-tenths percent (0.5%) of the total amount the grain
buyer paid for grain purchased from producers during the
grain buyer's most recent fiscal year;
whichever is greater.
(3) For a buyer-warehouse:
(A) an amount equal to the sum of:
(i) fifty thousand dollars ($50,000); and
(ii) ten cents ($0.10) multiplied by the licensed bushel
storage capacity of the buyer-warehouse's facility; or
(B) five-tenths percent (0.5%) of the total amount the
buyer-warehouse paid for grain purchased from producers
during the buyer-warehouse's most recent fiscal year;
whichever is greater.
(b) Except as provided in subsections (g) and (h), the amount of
bond, letter of credit, or cash deposit required by this chapter may not
exceed three hundred twenty-five thousand dollars ($325,000) per
license and may not exceed a total of one million two hundred fifty
thousand dollars ($1,250,000) per person.
(c) The licensed bushel storage capacity is the maximum number of
bushels of grain that the licensee's facility could accommodate as
determined by the director or the director's designated representative
and shall be increased or reduced in accordance with the amount of
space being used for storage from time to time.
(d) Instead of a bond or cash deposit, an irrevocable letter of credit
in the prescribed amount may be provided with the director as the
beneficiary. The director shall adopt rules under IC 4-22-2 to establish
acceptable form, substance, terms, and conditions for letters of credit.
The director may not release a party from the obligations of the letter
of credit within eighteen (18) fifteen (15) months of the termination of
the licensee's license.
(e) The director shall adopt rules under IC 4-22-2 to provide for the
receipt and retention of cash deposits. However, The director shall may
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not return a cash deposit to a licensee until the director has taken
reasonable precautions to assure that the licensee's obligations and
liabilities have been or will be met.
(f) If a person is licensed or is applying for licenses to operate two
(2) or more facilities in Indiana, the person may give a single bond,
letter of credit, or cash deposit to satisfy the requirements of this
chapter and the rules adopted under this chapter to cover all the
person's facilities in Indiana.
(g) If a licensee has a deficiency in the minimum positive tangible
net worth required under section 16(a)(2)(B), 16(a)(3)(B), 16(a)(4)(B),
or 16(a)(5)(B) 14.4 of this chapter, the licensee shall add to the amount
of bond, letter of credit, or cash deposit determined under subsection
(a) an amount equal to the deficiency or provide another form of surety
as permitted under the rules of the agency.
(h) Except as provided in subsections (i) and (j), a licensee may not
correct a deficiency in the minimum positive tangible net worth
required by section 16(a)(1), 16(a)(2)(A), 16(a)(3)(A), 16(a)(4)(A), or
16(a)(5)(A) 14.4 of this chapter by adding to the amount of bond, letter
of credit, or cash deposit required by subsection (a).
(i) A buyer-warehouse that has a bushel storage capacity of less than
one million (1,000,000) bushels or purchases less than one million
(1,000,000) bushels of grain per year may correct a deficiency in
minimum positive tangible net worth by adding to the amount of bond,
letter of credit, or cash deposit determined under subsection (a) if the
buyer-warehouse has a minimum positive tangible net worth of at least
fifty thousand dollars ($50,000), not including the amount added to the
bond, letter of credit, or cash deposit.
(j) A buyer-warehouse that has a bushel storage capacity of at least
one million (1,000,000) bushels, or purchases at least one million
(1,000,000) bushels of grain per year, may correct a deficiency in
minimum positive tangible net worth by adding to the amount of bond,
letter of credit, or cash deposit determined under subsection (a) if the
buyer-warehouse has a minimum positive tangible net worth of at least
one hundred thousand dollars ($100,000), not including the amount
added to the bond, letter of credit, or cash deposit.
(k) If the director or the director's designated representative finds
that conditions exist that warrant requiring additional bond or cash
deposit, there shall be added to the amount of bond or cash deposit as
determined under the other provisions of this section, a further amount
to meet the conditions.
(l) If the director or the director's designated representative finds a
deficiency in minimum positive tangible net worth before the
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licensee's next audit by the agency, the director shall issue a notice of
deficiency to the licensee stating that the licensee has thirty (30) days
to correct the deficiency. If a licensee fails to correct a deficiency in
minimum positive tangible net worth within the thirty (30) day period,
the director may issue a fine of not more than one thousand dollars
($1,000).
(m) If a licensee fails to correct a deficiency in minimum net worth
within sixty (60) days of receiving a fine under subsection (l), the
director may issue a temporary suspension of not more than thirty (30)
days. The director or the director's designated representative shall grant
an opportunity for a hearing as soon as possible following a temporary
suspension under this subsection.
(n) (m) The director may accept, instead of a single cash deposit,
letter of credit, or bond, a deposit consisting of any combination of cash
deposits, letters of credit, or bonds in an amount equal to the licensee's
obligation under this chapter. The director shall adopt rules under
IC 4-22-2 to establish standards for determining the order in which the
forms of security on deposit must be used to pay proven claims if the
licensee defaults.
(o) (n) The director may require additional bonding that the director
considers necessary.
SECTION 20. IC 26-3-7-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) A licensee may
not cancel an approved bond or approved insurance unless the director
has given prior written approval for the cancellation and has received
a substitute cash deposit or has approved a substitute bond or
insurance. The surety on a bond may cancel a bond required by this
chapter only after the expiration of ninety (90) days from the date the
surety mailed a notice of intent to cancel, by registered or certified
mail, to the director. An insurance company may cancel insurance
required by this chapter only after the expiration of a thirty (30) day
period from the mailing, by certified mail, of notice of intent to cancel,
to the director. The surety and the insurance company shall, at the time
of giving notice to the director, send a copy of the notice to the
licensee.
(b) Notwithstanding any other provision of this chapter, the license
of a licensee shall automatically be suspended fined one thousand
dollars ($1,000) for failure to:
(1) file a new bond, letter of credit, or cash deposit within the
ninety (90) day period as provided in this section;
(2) file new evidence of insurance within the thirty (30) day
period as provided in this section; or
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(3) maintain at all times a bond or cash deposit and insurance as
provided in this chapter.
The suspension shall continue until the licensee complies with the
bonding and insurance requirements of this chapter. If a licensee fails
to pay the fine and meet the requirements set forth in this
subsection within ninety (90) days, the agency shall revoke the
license of the licensee.
SECTION 21. IC 26-3-7-14.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 14.2. (a) A licensee under this
chapter shall maintain a minimum current ratio of one to one (1:1)
or better. The current ratio is determined by dividing a licensee's
current assets by the licensee's current liabilities, as demonstrated
by the licensee's financial statement submitted to the agency, the
quotient of which is rounded to the nearest ten-thousandth (0.0001)
decimal place.
(b) For purposes of subsection (a), a better ratio includes the
absence of a current ratio where the value of a licensee's current
liabilities, as demonstrated by the licensee's financial statement
submitted to the agency, is zero (0).
(c) The addition by the licensee of an amount required under
this section does not itself constitute or effect a cure of a current
ratio deficiency.
(d) If the licensee's demonstrated current ratio is less than the
required amount but greater than eighty-five percent (85%) of the
required amount, then:
(1) the director or the director's designated representative
shall issue a notice of deficiency to the licensee; and
(2) the licensee shall cure the current ratio deficiency within
ninety (90) days from the receipt of the deficiency notice.
(e) If the licensee's demonstrated current ratio is less than or
equal to eighty-five percent (85%) of the required amount or has
not cured the ratio deficiency as required in subsection (d)(2), then
the director shall hold an informal meeting in accordance with this
chapter and, within thirty (30) days of the conclusion of the
informal meeting, issue either:
(1) a consent agreement that requires the licensee to take
certain actions within a set period, not to exceed twelve (12)
months, to remedy the current ratio deficiency, as the director
deems necessary and appropriate; or
(2) an order that revokes the license or licenses of the licensee.
(f) If a licensee, after an informal meeting in subsection (e):
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(1) does not meet the requirements in subsection (e)(1), the
director shall revoke; or
(2) has an asset to liability ratio that has continued to decline,
the director may revoke;
the license or licenses of the licensee.
(g) Subject to section 31.8 of this chapter, the director shall
assess a fine of one thousand dollars ($1,000) against a licensee that
does not maintain the minimum ratio requirement under
subsection (a).
SECTION 22. IC 26-3-7-14.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 14.4. (a) As demonstrated by the
licensee's financial statement submitted to the agency, a licensee
under this chapter shall maintain a minimum positive tangible net
worth, as required under this section.
(b) A licensee shall maintain a minimum positive tangible net
worth as follows:
(1) For a grain bank license, at least one hundred thousand
dollars ($100,000).
(2) For a warehouse license, an amount at least equal to the
sum of:
(A) one hundred thousand dollars ($100,000); and
(B) ten cents ($0.10) multiplied by the total bushel storage
capacity of the facility or facilities covered by the
warehouse license.
(3) For a grain buyer license, an amount at least equal to the
greater of:
(A) one hundred thousand dollars ($100,000); or
(B) five cents ($0.05) multiplied by the total number of
bushels of grain purchased under the grain buyer license
during the grain buyer's most recent fiscal year.
(4) For a buyer-warehouse license, where the
buyer-warehouse license has one (1) or more facilities with a
total bushel storage capacity of less than one million
(1,000,000) bushels or at which the buyer-warehouse's total
annual purchases are less than one million (1,000,000) bushels
of grain, an amount at least equal to the greater of:
(A) the sum of:
(i) one hundred fifty thousand dollars ($150,000); and
(ii) ten cents ($0.10) multiplied by the total bushel
storage capacity of the facility or facilities covered by the
buyer-warehouse license; or
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(B) five cents ($0.05) multiplied by the total number of
bushels of grain purchased under the buyer-warehouse
license during the buyer-warehouse's most recent fiscal
year.
(5) For a buyer-warehouse license, where the
buyer-warehouse license has one (1) or more facilities with a
total bushel storage capacity of at least one million (1,000,000)
bushels or at which the buyer-warehouse's annual purchases
are at least one million (1,000,000) bushels of grain, an
amount at least equal to the greater of:
(A) the sum of:
(i) two hundred thousand dollars ($200,000); and
(ii) ten cents ($0.10) multiplied by the total bushel
storage capacity of the facility or facilities covered by the
buyer-warehouse license; or
(B) five cents ($0.05) multiplied by the total number of
bushels of grain purchased under the buyer-warehouse
license during the buyer-warehouse's most recent fiscal
year.
(c) If a licensee has more than one (1) license, the licensee shall
maintain a minimum positive tangible net worth that is at least
equal to the sum of the minimum positive net worth amounts
required under subsection (b) for each individual license held by
the licensee.
(d) A licensee that fails to be above eighty-five percent (85%) of
the minimum positive tangible net worth required under this
section, as demonstrated by the licensee's financial statement
submitted to the agency, may cure the minimum positive tangible
net worth deficiency by adding to the amount of the deposit, bond,
or other security required under this chapter an amount equal to
the difference between the required minimum positive tangible net
worth and the licensee's demonstrated net worth.
(e) A licensee may cure the minimum positive tangible net worth
deficiency by submitting to the agency:
(1) a financial statement, in compliance with the requirements
of this chapter, and current as of a date within the time
specified to cure the deficiency under this section,
demonstrating that the licensee meets the required minimum
positive tangible net worth; or
(2) a new financial statement, in compliance with the
requirements of this chapter, and current as of a date within
the time specified to cure the deficiency under this section,
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demonstrating that the licensee's demonstrated net worth is
at least equal to the amount or amounts specified in
subsection (b), and by adding to the amount of the deposit,
bond, or other security required under this chapter an
amount equal to the difference between the required
minimum positive tangible net worth and the licensee's
demonstrated net worth.
(f) The director may, in accordance with this section, require a
licensee that has failed to meet the minimum positive tangible net
worth requirement to add to the amount of the deposit, bond, or
other security required under this section an amount the director
deems necessary and appropriate to respond to the minimum
positive tangible net worth deficiency. The addition by the licensee
of an amount required under this subsection does not itself
constitute or effect a cure of a minimum positive tangible net worth
deficiency.
(g) If the licensee's demonstrated current net worth is less than
the required amount but greater than eighty-five percent (85%) of
the required amount, then:
(1) the director or the director's designated representative
shall issue a notice of deficiency to the licensee; and
(2) the licensee shall cure the current net worth deficiency
within ninety (90) days from the receipt of the deficiency
notice.
(h) If the licensee's demonstrated current net worth is less than
or equal to eighty-five percent (85%) of the required amount or
has not cured the ratio deficiency as required in subsection (d),
then the director shall hold an informal meeting in accordance
with this chapter and, within thirty (30) days of the conclusion of
the informal meeting, issue either:
(1) a consent agreement that requires the licensee to take
certain actions within a set period, not to exceed twelve (12)
months, to remedy the current net worth deficiency, as the
director deems necessary and appropriate; or
(2) an order that revokes the license or licenses of the licensee.
(i) If a licensee, after an informal meeting in subsection (h):
(1) does not meet the requirements in subsection (h)(1), the
director shall revoke; or
(2) has a net worth that has continued to decline, the director
may revoke;
the license or licenses of the licensee.
(j) Subject to section 31.8 of this chapter, the director shall
SEA 461 — Concur
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assess a fine of one thousand dollars ($1,000) on a licensee that does
not maintain the net worth requirement under subsection (b).
SECTION 23. IC 26-3-7-16 IS REPEALED [EFFECTIVE JULY 1,
2025]. Sec. 16. (a) A licensee shall have and maintain a current asset
to current liability ratio of one to one (1:1) and shall maintain, as
evidenced by the financial statement required by section 6 of this
chapter, the following minimum positive net worth:
(1) For a grain bank, minimum positive net worth is at least one
hundred thousand dollars ($100,000).
(2) For a warehouse, minimum positive net worth is at least equal
to the sum of:
(A) one hundred thousand dollars ($100,000); and
(B) ten cents ($0.10) multiplied by the bushel storage capacity
of the warehouse.
(3) For a grain buyer, minimum positive net worth is:
(A) one hundred thousand dollars ($100,000); or
(B) five cents ($0.05) multiplied by the total number of
bushels of grain purchased by the grain buyer during the grain
buyer's most recent fiscal year;
whichever is greater.
(4) For a buyer-warehouse that has a bushel storage capacity of
less than one million (1,000,000) bushels or purchases less than
one million (1,000,000) bushels of grain per year, minimum
positive net worth is:
(A) the sum of:
(i) one hundred fifty thousand dollars ($150,000); and
(ii) ten cents ($0.10) multiplied by the bushel storage
capacity of the buyer-warehouse; or
(B) five cents ($0.05) multiplied by the total number of
bushels of grain purchased by the buyer-warehouse during the
buyer-warehouse's most recent fiscal year;
whichever is greater.
(5) For a buyer-warehouse that has a bushel storage capacity of at
least one million (1,000,000) bushels or purchases at least one
million (1,000,000) bushels of grain per year, minimum positive
net worth is:
(A) the sum of:
(i) two hundred thousand dollars ($200,000); and
(ii) ten cents ($0.10) multiplied by the bushel storage
capacity of the buyer-warehouse; or
(B) five cents ($0.05) multiplied by the total number of
bushels of grain purchased by the buyer-warehouse during the
SEA 461 — Concur
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buyer-warehouse's most recent fiscal year;
whichever is greater.
(b) Except as provided in section 10 of this chapter, if a licensee is
required to show additional net worth to comply with this section, the
licensee may satisfy the requirement by adding to the amount of the
bond, letter of credit, or cash deposit required under section 10 of this
chapter an amount equal to the additional net worth required or provide
another form of surety as permitted under the rules of the agency.
(c) The director may adopt rules under IC 4-22-2 to provide that a
narrative market appraisal that demonstrates assets sufficient to comply
with this section may satisfy the minimum positive net worth
requirement.
SECTION 24. IC 26-3-7-16.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 16.3. (a) A licensee shall, as a
condition of licensure, submit to the agency on an annual basis, and
not later than one hundred twenty (120) days after the end of the
licensee's fiscal year, the following:
(1) A completed annual report in the form and as otherwise
required in this chapter.
(2) A financial statement for the licensee's most recent fiscal
year that complies with the requirements of this chapter.
(3) The applicable license fee, in a form and manner of
payment acceptable to the agency.
(b) Before the anniversary date of the license, the licensee shall
pay an annual fee in an amount equal to the amount required
under section 4.4 of this chapter. The director may prorate the
annual application fee for a license that is modified at least thirty
(30) days after the anniversary date of the licensee's license.
(c) If a licensee's storage capacity changes between license
renewals, the agency shall charge the licensee a fee of two hundred
fifty dollars ($250).
SECTION 25. IC 26-3-7-16.5, AS AMENDED BY P.L.145-2017,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 16.5. (a) Upon learning of the possibility that a
shortage exists, either as a result of an inspection or a report or
complaint from a depositor, the agency, based on an on-premises
inspection, shall make a preliminary determination as to whether a
shortage exists. If a shortage is not discovered, the agency shall treat
the audit as it would any other audit.
(b) If it is determined that a shortage may exist, the director or the
director's designated representative shall hold a hearing as soon as
SEA 461 — Concur
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possible to confirm the existence of a shortage as indicated by the
licensee's books and records and the grain on hand. Only the licensee,
the surety company named on the licensee's bond, the issuer of the
irrevocable letter of credit, and any grain depositor who has made a
claim or complaint to the agency in conjunction with the shortage shall
be considered as interested parties for the purposes of that hearing, and
each shall be given notice of the hearing. At the hearing, the director
or the director's designated representative shall determine whether
there appears to be a reasonable probability that a shortage exists. If it
is determined that a reasonable probability exists and that the bond or
letter of credit proceeds or the cash deposit should be distributed, a
preliminary determination shall be entered to the effect that the
licensee has failed to meet its obligations under this chapter or the rules
adopted under this chapter. At the hearing, the director or the director's
designated representative may order that shall take possession of the
bond or other security required under this chapter and all proceeds
from grain sales are to be held in the form in which they are received
and to be kept in a separate account from all other funds. held by the
licensee. The order may shall also provide for informal conferences
between agency representatives and persons who have or who appear
to have grain deposited with the licensee. The surety company shall be
permitted to participate in those conferences.
(c) In the event that the director determines that the bond or letter
of credit proceeds or cash deposit is to be distributed, the agency shall
hold a hearing on claims. Notice shall be given to the surety company
named on the licensee's bond, the issuer of the irrevocable letter of
credit, and to all persons shown by the licensee's books and records to
have interests in grain deposited with the licensee. If the agency has
actual knowledge of any other depositor or person claiming rights in
the grain deposited with the licensee, the bond, the irrevocable letter of
credit, or the cash deposit, notice shall also be provided to that person.
In addition, public notice shall be provided in newspapers of general
circulation that serve the counties in which licensed facilities are
located, and notices shall be posted on the licensed premises. At the
hearing on claims, the director or the director's designated
representative may accept as evidence of claims the report of agency
representatives who in informal conferences with depositors have
concluded that a claim is directly and precisely supported by the
licensee's books and records. When there is disagreement between the
claims of a depositor and the licensee's books and records, the director
or the director's designated representative shall hear oral claims and
receive written evidence of claims in order to determine the validity of
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the claim.
(d) Any depositor who does not present a claim at the hearing may
bring the claim to the agency within fifteen (15) days after the
conclusion of the hearing. However, a depositor who has a claim that
was involved in the probate of an estate at the time of the claims
hearing has one (1) year from the conclusion of the claims hearing to
present the claim to the agency.
(e) Only grain that has been delivered to a first purchaser licensee
for sale or storage under a bailment not more than fifteen (15) months
before the date of failure of the licensee revocation of the licensee's
license may be considered by the director or the director's designated
representative in determining the total proven storage and financial
obligations due to depositors and the loss sustained by each depositor
who has proven a claim.
(f) Following the hearing on claims, the director or the director's
designated representative shall make a determination as to the total
proven storage and financial obligations due to depositors and the loss
sustained by each depositor who has proven a claim. Depositors found
to have proven their claims for storage or financial loss shall be proven
claimants. In arriving at that loss, in accordance with section 19 of this
chapter, the director shall apply all grain on hand or its identifiable
proceeds to meet the licensee's obligations to grain depositors of grain
of that type. Initial determinations of loss shall be made on the amount
of grain on hand, or identifiable proceeds, and shall reduce the amount
to which a depositor may have a proven claim. With respect to the
remaining unfulfilled obligations, the director shall, for the sole
purpose of establishing each depositor's claim under this chapter,
establish a date upon which the loss is discovered, shall price the grain
as of that date, shall treat all outstanding grain storage obligations not
covered by grain on hand or identifiable proceeds as being sold as of
that date, and shall determine the extent of each depositor's loss as
being the actual loss sustained as of that date. Grain of a specific type
on the premises of a licensee must first be applied to meet the licensee's
storage obligations with respect to that type of grain. If there is
insufficient grain of a specific type on hand to meet all storage
obligations with respect to that type of grain, the grain that is present
shall be prorated in accordance with the procedures described in this
section and section 16.8 of this chapter. The agency shall refer the
licensee to the county prosecuting attorney if the licensee does not
have the amount of grain in storage, at the time of the revocation
of the license, that the records indicate should be in storage.
(g) Upon the failure of the agency to begin an audit, which would
SEA 461 — Concur
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serve as the basis for a preliminary administrative determination,
within forty-five (45) days of the agency's receipt of a written claim by
a depositor, a depositor shall have a right of action upon the bond,
letter of credit, or cash deposit. A depositor bringing a civil action need
not join other depositors. If the agency has undertaken an audit within
the forty-five (45) day period, the exclusive remedy for recovery
against the bond, letter of credit, or cash deposit shall be through the
recovery procedure prescribed by this section.
(h) When the proven claims exceed the amount of the bond, letter
of credit, or cash deposit, recoveries of proven claimants shall be
prorated in the same manner as priorities are prorated under section
16.8 of this chapter.
(i) The proceedings and hearings under this section may be
undertaken without regard to, in combination with, or in addition to
those undertaken in accordance with section 17.1 of this chapter.
(j) The findings of the director shall be final, conclusive, and
binding on all parties.
(k) The director may adopt rules under IC 4-22-2 to determine how
the agency may distribute the interest that may accrue from funds held
by the agency for the payment of claims.
(l) (k) A claim of a licensee for stored grain may not be honored
until the proven claims of all other claimants arising from the purchase,
storage, and handling of the grain have been paid in full.
(m) (l) A claim is considered to be adjudicated if the claimant has:
(1) agreed with the director's determination on the claim and not
filed an appeal under IC 4-21.5-3; or
(2) exhausted the claimant's administrative appeal and judicial
review remedies.
(n) (m) Subject to the requirements under this chapter, if one (1) or
more claimants are not paid in full for the claimants' proven claims, the
director shall forward to the Indiana grain indemnity fund board of
directors a list of the claimants who are owed money and the balance
difference between the amount that the claimant was paid and the
amount that the claimant claims to be due each claimant along with
a copy of the final order.
SECTION 26. IC 26-3-7-16.8, AS AMENDED BY P.L.145-2017,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 16.8. (a) A lien against all grain assets of a
licensee or a person who is required to be licensed under this chapter
attaches in favor of the following:
(1) A lender or other claimant that has a receipt for grain owned
or stored by the licensee.
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(2) A claimant that has a ticket or written evidence, other than a
receipt, of a storage obligation of the licensee.
(3) A claimant that surrendered a receipt as part of a grain sales
transaction if:
(A) the claimant was not fully paid for the grain sold; and
(B) the licensee failed has had the licensee's license revoked
less than twenty-one (21) days after the surrender of the
receipt.
(4) A claimant that has other written evidence of a sale to the
licensee of grain for which the claimant has not been fully paid.
(b) A lien under this section attaches and is effective at the earliest
of the following:
(1) the delivery of the grain for sale, storage, or under a bailment;
(2) the commencement of the storage obligation; or
(3) the advancement of funds by a lender.
(c) A lien under this section terminates when the licensee discharges
the claim.
(d) If a licensee has failed, had the licensee's license revoked, the
lien that attaches under this section is assigned to the agency by
operation of this section. If a failed licensee whose license has been
revoked is liquidated, a lien under this section continues to attach as
a claim against the assets or proceeds of the assets of the licensee that
are received or liquidated by the agency.
(e) Except as provided in subsection (h), if a licensee has failed, has
had the licensee's license revoked, the power to enforce the lien on
the licensee's grain assets transfers by operation of this section to the
director and rests exclusively with the director who shall allocate and
prorate the proceeds of the grain assets as provided in subsections (g)
and (i).
(f) The lien established under this section has priority over all
competing lien claims asserted against the licensee's grain assets.
(g) The priority of a lien that attaches under this section is not
determined by the date on which the claim arose. If a licensee has
failed, licensee's license has been revoked, the director shall enforce
lien claims and allocate grain assets and the proceeds of grain assets of
the licensee in the following order of priority:
(1) First priority is assigned to the following:
(A) A lender or other claimant that has a receipt for grain
owned or stored by the licensee.
(B) A claimant that has a ticket or written evidence, other than
a receipt, of a storage obligation of the licensee.
(C) A claimant that surrendered a receipt as part of a grain
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sales transaction if:
(i) the claimant was not fully paid for the grain sold; and
(ii) the licensee failed has had the licensee's license
revoked less than twenty-one (21) days after the surrender
of the receipt.
If there are insufficient grain assets to satisfy all first priority
claims, first priority claimants shall share pro rata in the assets.
(2) Second priority is assigned to all claimants who have written
evidence of the sale of grain, such as a ticket, a deferred pricing
agreement, or similar grain delivery contract, and who completed
delivery less than thirty (30) days before the licensee's failure.
revocation of the licensee's license. Claimants under this
subdivision share pro rata in the remaining assets if all claimants
under subdivision (1) have been paid but insufficient assets
remain to fully satisfy all claimants under this subdivision.
(3) Third priority is assigned to all other claimants that have
written evidence of the sale of grain to the failed revoked license
of the licensee. Claimants under this subdivision share pro rata in
the distribution of the remaining grain assets.
(h) If a claimant under this section brings an action to recover grain
assets that are subject to a lien under this section and the agency does
not join the action, the director shall, upon request of the claimant,
assign the lien to the claimant in order to allow the claimant to pursue
the claim to the extent that the action does not delay the resolution of
the matter by the agency, the prompt liquidation of the assets, or the
ultimate distribution of assets to all claimants.
(i) If:
(1) a claimant engaged in farming operations granted to one (1)
or more secured parties one (1) or more security interests in the
grain related to the claimant's claim under this section; and
(2) one (1) or more secured parties described in subdivision (1)
have given to:
(A) the licensee prior written notice of the security interest
under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before its
repeal; and
(B) the director prior written notice of the security interest
with respect to the grain described in subdivision (1) sufficient
to give the director a reasonable opportunity to cause the
issuance of a joint check under this subsection;
the director shall pay the claimant described in subdivision (1) the
portion of the proceeds of grain assets under subsection (e) to which
the claimant is entitled under this section by issuance of a check
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payable jointly to the order of the claimant and any secured party
described in subdivision (1) who has given the notices described in
subdivision (2). If only one (1) secured party described in subdivision
(1) is a payee, the rights of the secured party in the check shall be to the
extent of the indebtedness of the claimant to the secured party. If two
(2) or more secured parties described in subdivision (1) are payees, the
nature, extent, and priority of their respective rights in the check are
determined in the same manner as the nature, extent, and priority of
their respective security interest under IC 26-1-9.1.
SECTION 27. IC 26-3-7-17.1, AS AMENDED BY P.L.145-2017,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 17.1. (a) Whenever the director, as a result of an
inspection or otherwise, has reasonable cause to believe that a person
to which this chapter is or may be applicable:
(1) is conducting business contrary to this chapter or in an
unauthorized manner; or
(2) has failed, neglected, or refused to observe or comply with any
order, rule, or published policy statement of the agency;
then the director may undertake any one (1) of the actions prescribed
by this section.
(b) Upon learning of the possibility that a licensee is acting as
described in subsection (a), the director or the director's designated
representative may seek an informal meeting with the licensee. At that
meeting, which shall must be held at a time and place agreed to by the
licensee and the director, the director or the director's designated
representative shall discuss the possible violations and may enter into
a consent agreement with the licensee under which the licensee agrees
to undertake, or to cease, the activities that were the subject of the
meeting. The consent agreement may must:
(1) provide for a time frame within which the licensee must be in
compliance; and
(2) state in detail the requirements that must be met to be in
compliance, including the requirements under section 31.2(b)
of this chapter.
(c) Upon learning of the possibility that a person is acting as
described in subsection (a), the director or the director's designated
representative, except as otherwise provided in this subsection, shall
hold a hearing to determine whether a cease and desist order should
issue against a licensee or an unlicensed person undertaking activities
covered by this chapter. If the director or the director's designated
representative determines that the violation or the prohibited practice
is likely to cause immediate insolvency or irreparable harm to
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depositors, the director or the director's designated representative,
without notice, may shall issue a temporary cease and desist order
requiring the person to cease and desist from that violation or practice.
The order shall become effective upon service on the person and shall
remain effective and enforceable pending the completion of all
administrative proceedings.
(d) Upon a determination, after a hearing held by the director or the
director's designated representative, that a person is acting as described
in subsection (a), the director may suspend, shall revoke or deny a
license. If the director suspends, revokes or denies a license, the
director shall publish notice of the suspension, revocation or denial as
provided in section 17.5 of this chapter.
(e) If the director has reasonable cause to believe that a licensee is
acting as described in subsection (a) and determines that immediate
action without an opportunity for a hearing is necessary in order to
safeguard depositors, the director may suspend a license temporarily
without a hearing for a period not to exceed twenty (20) days. When a
license is suspended without a hearing, the director or the director's
designated representative shall grant an opportunity for a hearing as
soon as possible.
SECTION 28. IC 26-3-7-17.5, AS AMENDED BY P.L.60-2015,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 17.5. (a) Whenever the license of a licensee is
suspended or revoked, the director shall:
(1) for each facility operated by the licensee, publish a public
notice in a newspaper of general circulation that serves the county
in which the facility is located; and
(2) cause notice of the suspension or revocation to be posted at
the facilities covered by the license.
(b) Whenever an application for licensure under this chapter is
denied, the director may:
(1) for each facility operated by the applicant, publish a public
notice in a newspaper of general circulation that serves the county
in which the facility is located; and
(2) cause notice of the denial to be posted at the applicant's
facilities.
(c) A notice posted under this section may not be removed without
the written permission of the director.
(d) The director shall adopt rules under IC 4-22-2 to determine the
content of the notices required by this section.
SECTION 29. IC 26-3-7-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 18. (a) When a license
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is revoked, the licensee shall terminate in the manner prescribed by the
director all arrangements covering the grain in the facility covered by
the license, but shall be permitted, under the direction and supervision
of the director or the director's designated representative, to deliver
grain previously received.
(b) During any suspension of a license, the licensee may, under the
direction and supervision of the director or the director's designated
representative, operate the facility, but shall not incur any additional
obligations to producers.
SECTION 30. IC 26-3-7-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 26. Every ticket issued
shall embody within its terms:
(1) the name of the licensee to whom the grain was delivered;
(2) the date the grain was delivered;
(3) exact information concerning the type, net weight, and grade
factors of the grain received;
(4) a statement that the grain described in the ticket is to be taken
into storage, is being delivered on contract, or is to be sold under
other arrangements;
(5) the name of the owner of the grain; and
(6) other provisions prescribed by the director.
The director may adopt rules under IC 4-22-2 to exempt certain types
of grain from these requirements.
SECTION 31. IC 26-3-7-26.5, AS ADDED BY P.L.208-2021,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 26.5. (a) Beginning after July 1, 2022, A licensee
may not:
(1) enter into a deferred pricing agreement in connection with
grain purchases that extends beyond the crop year for the
delivered grain; or
(2) transfer the deferred pricing agreement to a new contract
deferred pricing agreement beyond the crop year for the
delivered grain.
(b) If the deferred pricing agreement in connection with a grain
purchase was entered into before July 1, 2021, the licensee shall
complete the licensee's payment obligations to the seller under the
agreement before January 1, 2024. The determined price date of a
deferred pricing agreement shall be:
(1) the determined price date set forth in the deferred pricing
agreement, if that date occurs before January 1, 2024;
(2) if subdivision (1) does not apply, a determined price date that
is mutually agreed to by the licensee and the seller; or
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(3) if subdivisions (1) and (2) do not apply, the date on which the
licensee completes the licensee's payment obligations to the
seller.
(c) If the director or director's designated representative determines
that the licensee has not complied with this section, the director shall
issue a notice stating that the licensee has thirty (30) days to price grain
for the initial deferred pricing agreement.
(d) If a licensee fails to price grain within thirty (30) days of the
notice in subsection (c), the director may impose a fine on the licensee
of not more than one thousand dollars ($1,000). Fines collected under
this section must be deposited in the grain buyers and warehouse
licensing agency license fee fund established by section 6.3 of this
chapter.
(e) Notwithstanding section 17.1 of this chapter, if a licensee fails
to price grain within sixty (60) days of the date of the notice in
subsection (c), the director may impose a fine on the licensee of not
more than two thousand five hundred dollars ($2,500) per month until
the licensee is in compliance with this section.
SECTION 32. IC 26-3-7-27.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 27.5. (a) For purposes of this
section, the following apply:
(1) "Unencumbered assets" means a licensee's unencumbered
assets as demonstrated by the agency's inspection of the
licensee's books and records.
(2) "Unpaid balance of grain payables" means a licensee's
unpaid balance of grain payables demonstrated by the
agency's inspection of the licensee's books and records.
(b) If an on-premises inspection of a licensee's books and
records demonstrates that the licensee, as of the time of the
inspection, did not have unencumbered assets with a value at least
equal to eighty-five percent (85%) of the unpaid balance of grain
payables covered by each license held by the licensee, then:
(1) the director or the director's designated representative
shall issue a notice of deficiency to the licensee; and
(2) the licensee shall cure the unencumbered asset deficiency
within ninety (90) days from the receipt of the notice.
(c) Unencumbered assets may consist of the aggregate of any of
the following:
(1) Company owned grain.
(2) Cash on hand.
(3) Cash held on account in federally or state licensed
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financial institutions or in lending institutions of the Federal
Farm Credit Administration.
(4) Investments held in time accounts with federally or state
licensed financial institutions.
(5) Direct obligations of the United States government.
(6) Balances in grain margin accounts determined by marking
to market.
(7) Balances due or to become due to the licensee on deferred
pricing contracts.
(8) Marketable securities, including mutual funds.
(9) Irrevocable letters of credit that:
(A) comply with the requirements of this chapter; and
(B) are in addition to any letter of credit filed with the
director to satisfy the deposit, bond, or other security
requirements of this chapter.
(10) Deferred pricing contract service charges due or to
become due to the licensee.
(11) Other evidence of proceeds from or of grain that is
acceptable to the agency.
(12) Seed inventory.
(13) Other assets that the agency may include in rules adopted
under section 38 of this chapter.
(d) If a licensee has more than one (1) license, the
unencumbered assets at the time of the inspections under
subsection (b) must have a value at least equal to the sum of the
amounts required under subsection (b) for each individual license
held by the licensee.
(e) If the licensee's demonstrated current unencumbered assets
is less than or equal to eighty-five percent (85%) of the required
amount or the licensee has not cured the unencumbered assets
deficiency as required in subsection (b)(2), then the director shall
hold an informal meeting in accordance with this chapter and,
within thirty (30) days of the conclusion of the informal meeting,
issue either:
(1) a consent agreement that requires the licensee to take
certain actions within a set period, not to exceed twelve (12)
months, to remedy the current unencumbered assets
deficiency, as the director deems necessary and appropriate;
or
(2) an order that revokes the license or licenses of the licensee.
(f) If a licensee, after an informal meeting in subsection (e):
(1) does not meet the requirements in subsection (e)(1), the
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director shall revoke; or
(2) has an unencumbered asset deficiency that has continued
to decline, the director may revoke;
the license or licenses of the licensee.
(g) Subject to section 31.8 of this chapter, the director shall
assess a fine of one thousand dollars ($1,000) on a licensee that does
not maintain the unencumbered asset requirement under
subsection (b).
(h) Nothing in this section precludes the agency from conducting
an on-premises inspection of a licensee at any time the director
may consider an inspection to be necessary or appropriate.
SECTION 33. IC 26-3-7-28 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 28. A licensee shall
keep in a place of safety complete and correct records and accounts
pertaining to the licensee's grain business. The licensee shall retain
records and accounts for not less than six (6) five (5) years from the
date of the final settlement of the transaction.
SECTION 34. IC 26-3-7-30, AS AMENDED BY P.L.64-2009,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 30. All receipt forms shall be supplied by the
director except where the director, in writing, approves the form and
gives permission to a warehouse operator to have receipts printed.
Requests for receipts shall be on forms furnished by the director and
shall be accompanied by payment to cover the estimated cost of
printing, packaging, and shipping, as determined by the director.
Where privately printed, the printer shall furnish the director an
affidavit showing the amount of the receipts printed, and the serial
numbers thereof. All receipts remaining unused shall be recovered by
the director or the director's designated representative if the license
required by this chapter is terminated or suspended. revoked.
SECTION 35. IC 26-3-7-31, AS AMENDED BY P.L.145-2017,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 31. (a) Whenever it appears to the satisfaction of
the director that a licensee cannot meet the licensee's outstanding grain
obligations owed to depositors, or when a licensee refuses to submit the
licensee's records or property to lawful inspection, the director may
shall give notice to the licensee to do any one (1) or more of the
following:
(1) Cover the shortage with grain that is fully paid for.
(2) Give additional bond, letter of credit, or cash deposit as
required by the director.
(3) Submit to inspection as the director may deem necessary.
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(b) If the licensee fails to comply with the terms of the notice within
five (5) business days from the date of its issuance, or within an
extension of time that the director may allow, the director may petition
the circuit court, superior court, or probate court of the Indiana county
where the licensee's principal place of business is located seeking the
appointment of a receiver. If the court determines in accordance with
IC 32-30-5 that a receiver should be appointed, upon the request of the
licensee the court may appoint the agency or its representative to act as
receiver. The agency or its representative shall may not be appointed
as receiver except upon the request of the licensee. If the agency or its
representative is appointed, any person interested in an action as
described in IC 32-30-5-2 may after twenty (20) days request that the
agency or its representative be removed as receiver. If the agency or its
representative is not serving as receiver, the receiver appointed shall
meet and confer with representatives of the agency regarding the
licensee's grain related obligations and, before taking any actions
regarding those obligations, the receiver and the court shall consider
the agency's views and comments.
(c) The director shall inform the corporation of any:
(1) notice or order issued; or
(2) action taken;
under this section.
SECTION 36. IC 26-3-7-31.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 31.2. (a) If the director
determines that an informal meeting under this chapter is
necessary or appropriate, the following procedures apply:
(1) The director shall send a notice of an informal meeting to
the licensee. The notice shall set forth the following:
(A) Each reason underlying the director's determination
that an informal meeting is necessary.
(B) The subject matter to be discussed at the informal
meeting.
(C) A place and time mutually agreed upon, within thirty
(30) days of the date of the notice.
(D) If appropriate, any documents, information, or other
materials to be produced in a manner and at a time and
place designated in the notice.
(2) The director and the recipient may, at any time before an
informal meeting, hold a telephone conference or other
informal discussion as necessary to determine the location,
date, and time of the informal meeting.
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(3) An informal meeting under this section must be conducted
in person or via a virtual conference with audio, video, and
the ability to share, review, and edit documents or other
materials in real time.
(4) Minutes summarizing the topics and points discussed,
including proposed agreements or remedial actions raised or
discussed by the informal meeting participants, must be taken
by the agency. A copy of the minutes and any other materials
from the informal meeting must be distributed to all
participants within five (5) days of the informal meeting.
(b) A consent agreement may be entered into by the agency and
the licensee in which the licensee agrees to take or refrain from
certain actions in relation to the subject matter of the informal
meeting. Any consent agreement at a minimum must contain the
following:
(1) Specific description of the underlying facts giving rise to
the consent agreement.
(2) Specific steps to be taken by the licensee to rectify or
address the subject matter of the informal meeting.
(3) Specific deadlines or periods by or within which the
licensee is to act, refrain from acting, or perform under the
consent agreement.
(4) Specific deadlines by which the licensee is to notify the
agency that the licensee has performed, in whole or in part,
under the consent agreement and, as applicable, that the
licensee believes it has addressed the subject matter of the
informal meeting.
(5) Specific acts or omissions that will constitute a breach of
the agreement and specific remedies available to the agency
and the licensee to address a breach of the agreement.
(c) The existence and content of an informal meeting under
subsection (a), along with the minutes of the meeting and any other
related documents, information, or material, and a consent
agreement under subsection (b) is confidential.
(d) Any offers or discussions from an informal hearing under
subsection (a) are protected under the Indiana Trial Rules of
Evidence Trial Rule 408.
SECTION 37. IC 26-3-7-31.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 31.6. (a) The director may revoke
a license by issuing a revocation order upon notice.
(b) If a license is revoked under this chapter, the licensee shall:
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(1) Immediately cease all activities covered by the revoked
license.
(2) Immediately remove all public indications regarding the
existence or effectiveness of the revoked license, including the
copy of the license physically on display at a facility.
(3) Promptly turn over and deliver to the director or the
director's designated representative all books, records, and
other property related to or containing information on the
activities and any obligations covered by the revoked license.
(4) Comply with any additional terms and conditions
determined by the director that the revocation order imposes
on the licensee.
(5) Comply with the orders from the director respecting the
revoked license, any obligations or activities covered by the
revoked license, or the claims administration process.
(c) Notwithstanding anything to the contrary in this chapter, a
license shall be revoked automatically if the licensee has done any
of, and as of the respective dates or times of, the following:
(1) Has filed a voluntary bankruptcy petition under Chapter
7 of the federal Bankruptcy Code, as of the date the licensee
filed the petition.
(2) Has filed:
(A) a voluntary bankruptcy petition under Chapter 11, 12,
or 13 of the federal Bankruptcy Code; and
(B) within seven (7) days of the filing of the petition, either:
(i) a liquidating plan not predicated or premised on a
prior sale process under Chapter 3 of the federal
Bankruptcy Code; or
(ii) an affidavit of an owner, member, director, officer,
or executive of the licensee stating that the licensee
intends to propose a liquidating plan without first
conducting a sale process under Chapter 3 of the federal
Bankruptcy Code;
as of the date the licensee filed the liquidating plan or
affidavit.
(3) Is the subject of an involuntary bankruptcy petition if the
bankruptcy court has entered an order for relief against the
licensee, as of the date and time of the order for relief.
(4) Is the subject of a receivership order in any state court, as
of the date and time of the receivership order.
(5) Is the assignor in an assignment for the benefit of creditors
in any state court, as of the date and time of the filing of
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pleading initiating the proceeding.
(6) Is declared by any court of competent jurisdiction to be
insolvent, as of the date and time of the order so declaring.
(7) Has entered into an agreement obligating the licensee to
discontinue and liquidate its business, or the portion of its
business covered by the license, without legal or equitable
proceedings, as of the effective date of the agreement.
(8) Has stated publicly and in writing that it is in the process
of discontinuing its business, or the portion of its business
covered by the license, or will be liquidating immediately, as
of the date and time the writing is published or made widely
available.
SECTION 38. IC 26-3-7-31.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 31.8. (a) If a fine is assessed under
this chapter, the director shall issue a notice to the person or
licensee containing the following:
(1) The reasons the director assessed the fine, including
citations to the applicable provisions of this chapter under
which the fine has been assessed.
(2) The amount of the assessed fine.
(3) The requirement that the assessed fine must be fully paid
within thirty (30) days of the notice being sent.
(4) The manners of payment acceptable to the agency and any
other necessary payment instructions.
(5) A full copy of this section.
(b) If a person or licensee fails to pay the assessed fine under
this section, the director may apply any penalty authorized in this
chapter, including revocation of a license.
SECTION 39. IC 26-3-7-32.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 32.5. If the director or the
director's designated representative is required or permitted to
give notice under this chapter, the notice must contain, in addition
to information or content required to be included in the notice
under this chapter requiring or establishing the notice:
(1) The date on which the notice is issued.
(2) The full name and contact information, including
telephone number and electronic mail address, for the
director, the director's designated representative, or the other
employee or agent of the agency responsible for the notice.
(3) The full name and contact information, as available to the
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agency, for the recipient of the notice.
(4) The reasons for the notice, including the applicable
sections of this chapter under which the fine has been
assessed.
(5) Any deadlines or other times within which the recipient of
the notice may or must act under this chapter.
(6) A list of each person to whom the notice is being sent.
(7) A list of any enclosures included with the notice.
(8) The signature of the director, the director's designated
representative, or the other employee or agent of the agency
responsible for the notice.
SECTION 40. IC 26-3-7-34, AS AMENDED BY P.L.158-2013,
SECTION 295, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 34. (a) A person who knowingly or
intentionally violates or fails to comply with this chapter commits a
Class A misdemeanor. Each day a person violates this chapter
constitutes a separate violation.
(b) A person who knowingly or intentionally issues a receipt or
ticket, knowing that the grain for which the receipt or ticket is issued
has not been actually received at the licensed warehouse, commits a
Class A misdemeanor. A person who issues a duplicate, or additional
negotiable receipt for grain, knowing that a former negotiable receipt
for the same grain or any part of the grain is outstanding and
uncancelled, except in the case of a lost, stolen, or destroyed receipt, as
provided in section 24 of this chapter, commits a Class A
misdemeanor. A person who fraudulently represents, alters, or
counterfeits any license provided for in this chapter commits a Level
6 felony.
(c) Except in case of sale or other disposition of the grain in lawful
enforcement of the lien on grain that attaches under this chapter or on
a licensee's lawful termination of storage, shipping, or handling
agreements, or except as permitted by the rules adopted by the director
under IC 4-22-2 section 38 of this chapter to effectuate the purposes
of this chapter:
(1) a person who knowingly or intentionally delivers grain out of
a licensed facility, knowing that a negotiable receipt, the
negotiation of which would transfer the right of possession of the
grain is outstanding and uncancelled, without obtaining the
possession of the receipt at or before the time of delivery,
commits a Level 6 felony; and
(2) a person who knowingly or intentionally delivers grain out of
a licensed facility, knowing that a non-negotiable receipt or ticket
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is outstanding and uncancelled, without the prior written approval
of the person lawfully entitled to delivery under the
non-negotiable receipt or ticket and without delivery being shown
on the appropriate records of the licensee, commits a Level 6
felony.
(d) A person who fraudulently issues a receipt, a ticket, or a weight
or grade certificate, knowing that it contains a false statement, or who
issues a receipt for grain owned solely or jointly by the person and does
not state the fact of the person's ownership in the receipt, commits a
Class A misdemeanor.
(e) A person who recklessly changes a receipt or ticket subsequent
to issuance, except for notation by the licensee of partial delivery,
commits a Class B misdemeanor.
(f) A person who knowingly or intentionally deposits grain to which
the person does not have title or upon which there is a lien or mortgage
and who accepts for the grain a receipt or ticket, without disclosing the
lack of title or the existence of the lien or mortgage, commits a Level
6 felony.
(g) A person commits a Class A misdemeanor who knowingly or
intentionally:
(1) engages in the business of being a grain buyer or operates a
warehouse without a valid license issued by the director;
(2) engages in the business of being a grain buyer or operates a
warehouse without a sufficient cash deposit, letter of credit, or
surety bond on file with and in a form approved by the director;
or
(3) engages in the business of being a grain buyer or operates a
warehouse while in violation of the rules adopted by the director.
(h) A person commits a Class A misdemeanor who willfully makes
or causes to be made a false entry or statement of fact in an application
or report filed with the director.
(i) A person who is not in compliance with section 3(a)(11) of this
chapter may be subject to a fine imposed by the agency of not more
than twenty thousand dollars ($20,000), or the suspension of the grain
buyer's license for not more than five (5) years, or both.
(j) (i) The director may suspend or revoke the license of a licensee
that uses an unlicensed facility to store or handle grain or commits
another violation of this chapter.
(j) The agency shall report a licensee that is suspected of a
criminal violation under this chapter to the county prosecuting
attorney or the attorney general.
SECTION 41. IC 26-3-7-38 IS ADDED TO THE INDIANA CODE
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AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 38. The director or agency may adopt rules under
IC 4-22-2 to carry out the purposes and intent of this chapter,
including the following:
(1) Inspections permitted under this chapter.
(2) The receipt and retention of cash deposits.
(3) The distribution of interest that may accrue from funds
held by the agency for the payment of claims.
(4) Acceptable terms for letters of credit.
(5) Fines for violations of this chapter.
SECTION 42. IC 26-3-7-39 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 39. The office of the attorney general shall provide
legal assistance to the division as requested by the director,
including representation for petition for reviews filed under
IC 4-21.5.
SECTION 43. IC 26-3-7.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 7.5. Inspection of Grain Moisture Testing Equipment
Sec. 1. As used in this chapter, "agency" refers to the Indiana
grain buyers and warehouse licensing agency.
Sec. 2. As used in this chapter, "director" means the director of
the Indiana grain buyers and warehouse licensing agency.
Sec. 3. The director or the director's designated representative
shall, at least one (1) time each year, inspect and test all equipment
used to test the moisture content of grain purchased from
producers.
Sec. 4. Each piece of equipment that is tested under this chapter
and found to be accurate according to rules or standards
prescribed by the United States Department of Agriculture and the
agency must bear a seal issued by the office of the director that
contains the following information:
(1) A statement that the equipment has been tested for
accuracy.
(2) The date of inspection.
(3) The expiration date of the seal.
Sec. 5. If an inspection facilitated by the agency results in a
failure in a moisture meter, the inspected entity must take the
following actions:
(1) Have the failed meter calibrated by an entity accepted by
the agency.
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(2) File a receipt with the agency showing the inspected entity
has corrected the failed moisture meter.
(3) Receive approval from agency.
Sec. 6. (a) The director or the director's designated
representative shall charge each inspection site a two hundred
dollar ($200) fee for each moisture testing device inspected at the
inspection site under this chapter.
(b) All fees collected under this section must be deposited in the
grain buyers and warehouse licensing agency license fee fund
established by IC 26-3-7-6.3.
Sec. 7. The agency may:
(1) employ persons;
(2) make expenditures;
(3) require reports and records;
(4) make investigations; and
(5) take other action;
that the agency considers necessary or suitable for the proper
administration of this chapter.
Sec. 8. (a) The agency may adopt rules under IC 4-22-2 to
administer this chapter.
(b) A copy of this chapter and the rules adopted under this
chapter must be posted in a conspicuous manner at every
commercial grain buying site.
Sec. 9. A person who recklessly uses equipment:
(1) to ascertain the moisture of grain in the process of
commercial buying or selling of grain; and
(2) that does not bear the seal required by section 4 of this
chapter;
commits a Class B misdemeanor.
SECTION 44. IC 26-4-1-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 3.5. "Basis" means the difference between the flat
price contract and a specified futures price of the same or a related
commodity.
SECTION 45. IC 26-4-1-3.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 3.7. "Basis contract" means an agreement that
establishes the difference between the flat price contract and a
specified futures price of the same or a related commodity.
SECTION 46. IC 26-4-1-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4.5. "Claim" means a claim that has been vetted
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through the agency process under IC 26-3-7-16.5 where the
claimant has provided the agency with documentation of the
financial loss the claimant has experienced minus any payments
made to the claimant regarding said loss.
SECTION 47. IC 26-4-1-5, AS AMENDED BY P.L.75-2010,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. "Claimant" means a producer that:
(1) is a participant in the grain indemnity program;
(2) possesses a claim resulting from a failure the revocation of
a license of a licensed grain buyer or warehouse; and
(3) has a claim that has been adjudicated by the agency under
IC 26-3-7-16.5. can provide written documented proof of the
type of loss and price at which the financial loss was
calculated.
SECTION 48. IC 26-4-1-8.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 8.1. "Deferred pricing" means a purchase by a buyer
where title to the grain passes to the buyer, in which the actual
dollar price to be paid to the seller is not to be determined at the
time the grain is received by the buyer or less than twenty-one (21)
days of that receipt.
SECTION 49. IC 26-4-1-10 IS REPEALED [EFFECTIVE JULY 1,
2025]. Sec. 10. "Failed" or "failure" means any of the following:
(1) An inability of a licensee to financially satisfy fully all
obligations due a claimant.
(2) A public declaration of a licensee's insolvency.
(3) The nonpayment of a licensee's debts in the ordinary course of
business if there is not a good faith dispute.
(4) Revocation or suspension of a licensee's license, if the
licensee has outstanding indebtedness owed to claimants.
(5) Voluntary surrender of a licensee's license, if the licensee has
outstanding indebtedness to claimants.
(6) Involuntary or voluntary bankruptcy of a licensee.
SECTION 50. IC 26-4-1-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 11. "Financial loss"
means a loss resulting from the following:
(1) A producer not being fully paid for grain that has been
delivered and sold to a grain buyer, net of any outstanding charges
against the grain.
(2) Storage loss.
SECTION 51. IC 26-4-1-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
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[EFFECTIVE JULY 1, 2025]: Sec. 11.5. "Flat price contract" means
a contract that sets a fixed price for a specific delivery
requirement, where the price is determined by adding the basis to
the futures price of the same commodity, which is set before the
futures contract expires.
SECTION 52. IC 26-4-1-13, AS AMENDED BY P.L.208-2021,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 13. "Grain" means corn for all uses, popcorn,
wheat, oats, rye, soybeans, barley, sorghum, oil seeds, other agricultural
commodities as approved by the agency, and seed (as defined in
IC 26-3-7-2(28)). IC 26-3-7-2(30)). The term does not include canning
crops for processing or sweet corn.
SECTION 53. IC 26-4-1-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15. "Grain indemnity
program" means the system created by this article to have in which the
board pay pays money out of the fund to producers having financial
losses due to a failure. license revocation.
SECTION 54. IC 26-4-1-15.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 15.7. "Outstanding charges" and
"credits and offsets" include the following:
(1) Moisture discounts and drying charges.
(2) Foreign material discounts and quality discounts.
(3) Storage charges.
(4) Deferred pricing charges.
(5) Marketing checkoffs.
(6) All other deductions from the gross amount due to the
producer on the sale of grain.
SECTION 55. IC 26-4-1-19.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 19.3. "Revocation of a license"
has the meaning set forth in IC 26-3-7-2.
SECTION 56. IC 26-4-1-19.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 19.7. "Storage" has the meaning
set forth in IC 26-3-7-2.
SECTION 57. IC 26-4-1-20, AS AMENDED BY P.L.75-2010,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 20. "Storage loss" means a loss to a storage
depositor resulting from a failed warehouse operator:
(1) whose license has been revoked; and
(2) who has not fully satisfying satisfied the warehouse operator's
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storage obligation to the depositor, net of any outstanding charges
against the grain.
SECTION 58. IC 26-4-1-23, AS AMENDED BY P.L.75-2010,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 23. "Warehouse" means any building or other
protected enclosure in one (1) general location that is licensed or
required to be licensed under IC 26-3-7, which building or other
protected enclosure is operated under one (1) ownership and run
from a single office, and in which grain is or may be:
(1) stored for hire;
(2) used for grain bank storage; or
(3) used to store company owned grain.
and the building or other protected enclosure is operated under one (1)
ownership and run from a single office.
SECTION 59. IC 26-4-3-2, AS AMENDED BY P.L.208-2021,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) The corporation's board is created. The
governing powers of the corporation are vested in the board, which is
composed of thirteen (13) members as described in subsections (b) and
(c).
(b) The board consists of the following ten (10) voting members:
(1) Two (2) members appointed by the largest Indiana
organization representing the interests of grain and feed dealers
in Indiana.
(2) Two (2) members appointed by the largest Indiana
organization representing general farm interests in Indiana.
(3) One (1) member appointed by the second largest Indiana
organization representing general farm interests in Indiana.
(4) One (1) member appointed by the largest Indiana organization
exclusively representing the interests of corn producers.
(5) One (1) member appointed by the largest Indiana organization
exclusively representing the interests of soybean producers in
Indiana.
(6) Two (2) members appointed by the largest Indiana
organization representing the interests of bankers in Indiana.
(7) One (1) member appointed by the largest Indiana organization
representing the interests of the seed trade in Indiana.
The members appointed under subdivisions (2) through (5) must be
producers.
(c) The board consists of the following three (3) nonvoting
members:
(1) The attorney general.
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(2) The treasurer of state.
(3) The director of the agency. who shall serve as the chairperson.
(d) The:
(1) attorney general may designate a licensed attorney
representative; and
(2) treasurer of state may designate a representative;
to serve on the board.
(e) At an annual meeting of the board, to be held in July, the
members of the board shall elect a chairperson and vice
chairperson. The chairperson and vice chairperson must be voting
members and serve for a one (1) year term. The chairperson and
vice chairperson may be reelected for subsequent one (1) year
terms for a maximum of two (2) years in an eight (8) year period.
(f) The chairperson shall lead the meetings of the board. When
the chairperson is not available the vice chairperson shall lead the
meetings of the board. If neither the chairperson nor vice
chairperson is present, the chairperson may designate a voting
member of the board to lead the meeting.
SECTION 60. IC 26-4-3-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) Except as
provided in subsection (b), six (6) voting members constitute a quorum.
The affirmative votes of at least six (6) voting members who are
present in person are necessary for any action to be taken by the
board.
(b) A meeting may be adjourned by less than six (6) members.
SECTION 61. IC 26-4-3-7, AS AMENDED BY P.L.208-2021,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. (a) The board shall do the following:
(1) Adopt rules, create forms, and establish guidelines to
implement this article.
(2) Collect and deposit all producer premiums authorized under
IC 26-4-4-4 into the fund for investment by the board.
(3) Require reports from the agency regarding the financial status
of a licensee, while the board is in executive session and without
disclosing the name or any other identifying information of the
licensee, including the following:
(A) Whether there is a risk that a licensee may fail. have the
licensee's license revoked.
(B) The financial impact to the fund if a licensee identified in
clause (A) were to fail. have the licensee's license revoked.
(C) The estimated number of potential claimants that could
result from the failure revocation of a license of a licensee
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identified in clause (A).
(D) Any other information the director determines is necessary
to solicit the advice of the board regarding the financial status
of a licensee.
However, the director may not share information under this
subdivision with a board member who has not executed a
confidentiality agreement.
(4) Initiate any action it may consider necessary to compel the
grain buyer against whom an awarded claim arose to repay to the
fund the sums that are disbursed from the fund in relation to each
claim.
(5) Initiate any action it may consider necessary to compel the
claimant whose claim arose due to a failure the revocation of a
license to participate in any legal proceeding, investigation, or
questioning by the board in relation to the claim.
(6) Within five (5) business days of receiving notice of failure the
revocation of a license of a grain buyer, publish notice of the
failure revocation in a manner described in IC 5-3.
(7) When a claim is made against the fund, hire a manager or
management firm, that is not associated with or related to any
member of the board, to assist board members in developing
agendas, assisting in determining claims made against the
fund, presenting the evidence of claims made by the agency,
presenting claim information to the board, and other duties
determined by the board.
(8) Seek independent legal advice when negotiating settlement
of claims made against the fund when a claimant does not
agree with the amount decided by the board as a fair amount
for claims made.
(9) Determine whether claims made by producers are
legitimate and backed by credible supporting documentation.
(10) Deny payments to claimants refusing to produce
requested documentation or participate in investigations by
the board.
(11) With the approval of the majority of the board, make
payment from the fund when the payment is necessary for the
purpose of compensating claimants under IC 26-4-6.
(12) Have subpoena power for credible documentation of
losses requested to be paid to claimants by the fund.
(b) At the request of the chairperson, the agency shall provide
administrative support to the board.
SECTION 62. IC 26-4-3-8.5, AS ADDED BY P.L.208-2021,
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SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8.5. (a) A board member may not discuss any
pending claim or potential claim except with another board
member, at a board meeting, including at an executive session of
the board.
(b) If a board member reasonably believes that a conflict of interest
exists with respect to the exercise of the board member's official duties
in a particular case, the board member:
(1) shall disclose that a conflict of interest exists to the board and
the agency; and
(2) is recused from the proceeding.
SECTION 63. IC 26-4-3-9, AS AMENDED BY P.L.208-2021,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 9. (a) The corporation may do or shall have any
of the following:
(1) Perpetual succession by its corporate name as a corporate
body.
(2) Adopt and make use of an official seal and alter the same at
pleasure.
(3) Adopt, amend, and repeal bylaws consistent with the
provisions of this article for the regulation and conduct of the
corporation's affairs and prescribe rules and policies in connection
with the performance of the corporation's functions and duties.
(4) Use the services of the agency, the Indiana state department
of agriculture, and the attorney general when considered
necessary in the execution of the duties of the board.
(5) Accept gifts, devises, bequests, grants, loans, appropriations,
revenue sharing, other financing and assistance, and any other aid
from any source and agree to and comply with any attached
conditions.
(6) Procure insurance against any loss in connection with its
operations in the amounts and from the insurers as it considers
necessary or desirable.
(7) Borrow money from a bank, an insurance company, an
investment company, or any other person. The corporation may
negotiate the terms of a loan contract. The contract must provide
for repayment of the money in not more than forty (40) years and
that the loan may be prepaid. The loan contract must plainly state
that it is not an indebtedness of the state but constitutes a
corporate obligation solely of the corporation and is payable
solely from revenues of the corporation or any appropriations
from the state that might be made to the corporation for that
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purpose.
(8) Include in any borrowing amounts considered necessary by the
corporation to pay financing charges, interest on the obligations,
consultant, advisory, and legal fees, and other expenses necessary
or incident to such borrowing.
(9) Employ personnel as may be required in the judgment of the
corporation, and fix and pay compensation from money available
to the corporation from the administrative expenses account.
(10) Make, execute, and carry out any and all contracts,
agreements, or other documents with any governmental agency or
any person, corporation, limited liability company, association,
partnership, or other organization or entity necessary or
convenient to accomplish the purposes of this article.
(11) Upon the request of the director of the agency and the
approval of the board, make payment from the fund when the
payment is necessary for the purpose of compensating claimants
in accordance with the provisions of IC 26-4-6.
(12) (11) Have powers necessary or appropriate for the exercise
of the powers specifically conferred upon the corporation and all
incidental powers customary in corporations.
(13) (12) May require a study of fund solvency, practices, and
procedures from a third party of the fund as needed.
(14) (13) Pay legal fees and legal expenses in actions brought
against the corporation or board.
(b) The corporation or the board may use the services of a person
other than the attorney general to collect money owed to the fund or to
litigate claims concerning money owed to the fund.
SECTION 64. IC 26-4-4-1, AS AMENDED BY P.L.60-2015,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) The Indiana grain indemnity fund is
established for the purpose of providing money to pay producers for
losses incurred due to the failure revocation of a license of a grain
buyer or warehouse operator licensed under IC 26-3-7. The fund shall
be administered by the board of the corporation.
(b) The fund consists of money collected under this chapter.
(c) The fund shall operate on a fiscal year of July 1 to June 30.
SECTION 65. IC 26-4-4-2, AS AMENDED BY P.L.208-2021,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) The administrative expense account is
created within the fund.
(b) The expenses of administering the fund and paying
administrative expenses must be paid from money in the administrative
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expense account.
(c) The board may transfer annually not more than three hundred
fifty thousand dollars ($350,000) from the fund to the administrative
expense account.
(d) Administrative expenses under this section may include:
(1) processing refunds;
(2) enforcement of the fund;
(3) record keeping in relation to the fund;
(4) the ordinary management and investment fees connected with
the operation of the fund;
(5) a study of fund solvency, practices, and procedures;
(6) a performance review of the agency's auditing practices and
procedures;
(7) professional development and training programs for agency
staff that are closely relevant to the auditing, licensing, and other
regulatory functions of the agency;
(8) technology software updates and technology support services
that are closely relevant to the auditing, licensing, and other
regulatory functions of the agency;
(9) professional training for board members on the board
members' duties and responsibilities; and
(10) the use of supplemental consulting services;
(11) hiring a manager or a management firm;
(12) hiring legal counsel or seeking legal consultation; and
(13) paying legal fees and legal expenses in an action brought
against, or by, the corporation or board and that have been
approved by the board.
(e) The agency may not use money in the administrative expense
account for expenses other than the expenses described in subsection
(d).
SECTION 66. IC 26-4-4-4, AS AMENDED BY P.L.145-2017,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) Except as provided in section 8 of this
chapter, beginning on July 1, 2015, the producers of grain shall be
charged a producer premium equal to two-tenths percent (0.2%) of the
price on all marketed grain that is sold to a first purchaser licensee.
(b) The producer premiums required under this section are in
addition to any other fees or assessments required by law.
(c) The amount of the producer premium must be calculated
using the gross sales price of the grain, including all premiums and
discounts for moisture, quality, variety, or any other characteristic
of the grain. The producer premium must be calculated before the
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deduction of marketing assessments, storage, drying, cleaning, or
any other service charge.
SECTION 67. IC 26-4-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. (a) When purchasing
grain, a grain buyer, a grain buyer's agent, or a grain buyer's
representative shall:
(1) deduct the producer premium described in section 4 of this
chapter from the producer's payment; and
(2) document the producer premium paid by the producer.
(b) A grain buyer shall submit producer premiums collected under
subsection (a) to the board for the purpose of financing or contributing
to the financing of the fund by:
(1) October 31 for producer premiums collected during the
months of July, August, and September;
(2) January 31 for producer premiums collected during the
months of October, November, and December;
(3) April 30 for producer premiums collected during the months
of January, February, and March; and
(4) July 31 for producer premiums collected during the months of
April, May, and June.
Each grain buyer shall, in accordance with the time frame set forth
in this subsection, remit to the corporation the producer premium
along with the remittance form provided by the corporation and
completed by the grain buyer.
SECTION 68. IC 26-4-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) The:
(1) books and records of each grain buyer must clearly indicate
the producer premiums collected by the grain buyer; and
(2) portion of the books and records reflecting the premiums
collected must be open for inspection by the corporation, board,
board's authorized agents, director, or the director's designee
designated representative during regular business hours.
(b) Each grain buyer shall keep accurate and correct records of
grain purchased from producers documenting the producer
premiums paid by producers. The records must be maintained by
the grain buyer for a period of five (5) years from the date of
remittance of the producer premiums to the corporation. The
records must be available to authorized agents of the corporation
during normal business hours.
(b) (c) The corporation, board, board's authorized agent, director, or
the director's designee designated representative may take steps
reasonably necessary to verify the accuracy of the portion of a grain
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buyer's books and records that reflect the premiums collected. The
information obtained under this section is confidential for purposes of
IC 5-14-3-4(a)(1). Unless otherwise required by judicial order, the
information obtained under this section may be disclosed only to
parties empowered to see or review the information. The corporation,
board, or director may respond to inquiries or disclose information
obtained under this section only in accordance with guidelines set forth
in IC 26-3-7-6.5.
(c) (d) Notwithstanding subsections (a) and (b), (c), the verification
permitted under subsection (b) (c) must be completed by the agency
unless two-thirds (2/3) of the board vote to have the verification
completed by an independent auditor.
SECTION 69. IC 26-4-4-8, AS AMENDED BY P.L.60-2015,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8. (a) The producer premiums required under
section 4 of this chapter must be collected until the fund contains more
than twenty-five million dollars ($25,000,000), as of June 30 of any
given year.
(b) Except as provided in subsection (c), after the fund reaches
twenty-five million dollars ($25,000,000), the board may not require
the collection of additional producer premiums until the amount in the
fund drops below twenty million dollars ($20,000,000), as determined
under section 9 of this chapter. In a year when the board determines
that the fund is at or below twenty million dollars ($20,000,000), the
board shall reinstate the collection described in this chapter.
(c) The board shall reinstate the collection described in this chapter
if as of May 1:
(1) the fund contains at least twenty million dollars
($20,000,000);
(2) the board is aware of a failure the revocation of a license of
a grain buyer; licensee; and
(3) the amount of compensation from the fund to cover producers'
claims, as determined by the board, is equal to or greater than the
amount of money in the fund.
(d) Collections must occur from September 1 through August 30
any year collections are made.
SECTION 70. IC 26-4-5-1, AS AMENDED BY P.L.145-2017,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) A producer upon and against whom a
producer premium is charged and collected under the provisions of this
chapter may demand of and by complying with this chapter receive
from the fund through the board a refund of the producer premiums
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collected from the producer.
(b) The board shall develop the form on which a demand for a
refund must be filed. The board shall make the form available to grain
buyers, producers, and the public upon request.
(c) Except as provided in subsection (d), a demand for a refund
under this section is only valid if:
(1) made in writing and:
(A) hand delivered; or
(B) sent by first class mail;
to the board; and
(2) delivered or sent to the board not more than twelve (12)
months after the premium was collected.
(d) The board may for good cause grant an extension for filing a
demand for a refund under this chapter.
(e) A producer that requests and receives a refund under this section
after June 30, 2015, is not protected and will not be compensated by
the grain indemnity program. The board may not consider any refunds
claimed before July 1, 2015, in determining whether a producer is
covered by the fund.
(f) A producer who requests a refund of producer premiums
paid is not eligible to be a claimant as of the date the refund check
is issued to the producer by the board.
(f) (g) Before January 1 of each year in which producer premiums
were collected during the immediately preceding calendar year, the
board shall send a notice to each producer who requested a refund of
producer premiums in any previous year. The notice must inform the
producer of the time frame in which a request for a refund must be
made and the method of filing for a refund.
SECTION 71. IC 26-4-5-2, AS AMENDED BY P.L.145-2017,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) A producer who has received a refund of a
producer premium under section 1 of this chapter after June 30, 2015,
and has made a request for reentry may reenter the grain indemnity
program if the following conditions are satisfied:
(1) The producer petitions the board for approval of reentry into
the grain indemnity program by hand delivering or sending by
certified mail, return receipt requested, a written request in a form
required by the board.
(2) The board reviews the producer's petition for reentry and
approves the petition.
(3) The producer pays into the fund:
(A) all previous producer premium refunds; and
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(B) interest on the refunds;
as determined by the board.
(b) A producer that reenters the grain indemnity program under
subsection (a)(3) is protected by the program from the time all previous
producer premium refunds that were claimed after June 30, 2015, and
interest on the refunds, are paid to the fund.
(c) A producer who reenters the grain indemnity program may not
make a claim on the fund that arises from a failure the revocation of
a license that occurs before until six (6) months after the producer
meets the requirements for reentry described in subsection (a).
SECTION 72. IC 26-4-5-4, AS ADDED BY P.L.145-2017,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. The board, in coordination with the agency,
shall develop educational information to be made available
electronically to producers, grain buyers, and warehouse operators,
explaining the following:
(1) The purpose of the fund.
(2) How the fund is operated.
(3) An explanation of coverage under the program, including the
duration of coverage and limits on losses.
(4) The process for claiming a refund.
(5) The process for reentering the program.
(6) Where a producer may locate information about the producer's
status in the program.
(7) Materials explaining normal industry marketing terms
and the terms meanings.
SECTION 73. IC 26-4-6-3, AS AMENDED BY P.L.75-2010,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), within
ninety (90) days of the board's approval of a claim, the board shall
compensate from the fund, in an amount described in section 4 of this
chapter and in the manner described in subsection (c), a claimant who
has incurred a financial loss or storage loss due to a failure the
revocation of a license of a grain buyer or warehouse operator licensed
under IC 26-3-7.
(b) The time for payment may be extended if the board and claimant
mutually agree and put the terms of the payment in writing.
(c) If:
(1) a claimant engaged in farming operations granted to one (1)
or more secured parties one (1) or more security interests in the
grain related to the claimant's claim under this section; and
(2) one (1) or more secured parties described in subdivision (1)
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have given to:
(A) the licensee prior written notice of the security interest
under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before its
repeal; and
(B) the board prior written notice of the security interest with
respect to the grain described in subdivision (1) sufficient to
give the board a reasonable opportunity to cause the issuance
of a joint check under this subsection;
the board may compensate the claimant described in subdivision (1) in
the amount to which the claimant is entitled under section 4 of this
chapter by causing the issuance of a check payable jointly to the order
of the claimant and any secured party described in subdivision (1) who
has given the notices described in subdivision (2). If only one (1)
secured party described in subdivision (1) is a payee, the rights of the
secured party in the check shall be to the extent of the indebtedness of
the claimant to the secured party. If two (2) or more secured parties
described in subdivision (1) are payees, the nature, extent, and priority
of their respective rights in the check are determined in the same
manner as the nature, extent, and priority of their respective security
interest under IC 26-1-9.1.
SECTION 74. IC 26-4-6-4, AS AMENDED BY P.L.145-2017,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) A claimant who has incurred a storage loss
due to the failure revocation of a warehouse operator licensed license
under IC 26-3-7 is entitled to be compensated by the board from the
fund for one hundred percent (100%) of the storage loss incurred less
all credits and offsets and any producer premium that would have been
due on the sale of the grain. The gross amount of the storage loss shall
be as determined by the agency for warehouses licensed under
IC 26-3-7 or by the United States Department of Agriculture for
warehouses licensed under the United States Warehouse Act. The
warehouse operator, agency, and claimants may submit to the agency
board evidence related to outstanding charges against stored grain. If
the evidence is submitted, the agency shall determine the storage loss
payable by the board. However, the outstanding charges may not
include uncollected storage charges.
(b) Before a storage loss may be paid, the producer must
provide to the board evidence that storage fees were paid to the
facility for the time during which the grain was stored. The board
shall use the following minimum storage fees to determine the
storage loss:
(1) Barley and barley seed: Five cents ($0.05) per month, per
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bushel.
(2) Canola and canola seed: Five cents ($0.05) per month, per
bushel.
(3) Corn and corn seed: Five cents ($0.05) per month, per
bushel.
(4) Lentils and lentil seed: Five cents ($0.05) per month, per
bushel.
(5) Oats and oat seed: Five cents ($0.05) per month, per
bushel.
(6) Popcorn and popcorn seed: Ten cents ($0.10) per month,
per bushel.
(7) Rye and rye seed: Five cents ($0.05) per month, per bushel.
(8) Sorghum and sorghum seed: Five cents ($0.05) per month,
per bushel.
(9) Soybeans and soybean seed: Fifteen cents ($0.15) per
month, per bushel.
(10) Sunflower and sunflower seed: Five cents ($0.05) per
month, per bushel.
(11) Wheat and wheat seed: Five cents ($0.05) per month, per
bushel.
(12) All other field crops and other field crop seed: Five cents
($0.05) per month, per bushel.
(b) (c) A claimant who has incurred a financial loss due to the
failure revocation of a license of a grain buyer is entitled to be
compensated by the board from the fund for eighty percent (80%) of
the loss incurred less all credits and offsets and any producer premium
that should have been due on the sale of the grain. The agency board
shall determine the loss incurred in the following manner:
(1) For grain that has been priced, the loss shall be the value of
the priced grain less any outstanding charges against the grain.
(2) For grain sold to a grain buyer, where the title to the grain
has passed to the grain buyer, who is also a warehouse operator
and that has not been priced, the loss shall be established using
the price determined for the storage obligations.
(3) For grain sold to a grain buyer who is not a warehouse
operator and that has not been priced, the loss shall be established
using a price determined by the agency using the same procedures
used by the agency to determine the price at the warehouse.
(c) (d) If a producer appeals under IC 4-21.5-3 an order issued by
the director under IC 26-3-7-16.5 that postpones the agency from
notifying the board of the amount of loss for proven claimants under
IC 26-3-7-16.5(n), IC 26-3-7-16.5(m), the board may issue partial
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payments to any claimants who have not appealed their claims.
SECTION 75. IC 26-4-6-6, AS AMENDED BY P.L.145-2017,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. A claimant compensated under this chapter is
required to subrogate to the board or corporation all the claimant's
rights to collect on a bond issued under IC 26-3-7 or the United States
Warehouse Act and all the claimant's rights to any other compensation
arising from the failure revocation of a license of the grain buyer or
warehouse operator. The claimant shall assign all the claimant's rights,
title, and interest in any judgment concerning the failure revocation of
a license to the board or corporation.
SECTION 76. IC 26-4-6-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. The board shall deny
the payment of compensation under this chapter to a claimant who has
incurred a financial loss or storage loss due to the failure revocation
of a license of a warehouse or grain buyer when the board determines
the existence of any of the following:
(1) The claimant as payee has failed to present for payment a
negotiable instrument issued as payment for grain within ninety
(90) days from the date the negotiable instrument is tendered to
the claimant in satisfaction of obligations for grain purchased by
the licensed grain establishment.
(2) The claimant has engaged in conduct or practices that differ
from generally accepted marketing practices within the grain
industry, as determined by a majority of the board, to an extent
that the claimant's actions have substantially contributed to the
claimant's loss. The Indiana grain indemnity board may consider
whether contracts not excluded under IC 26-3-7-4 IC 26-3-7 are
to be generally accepted marketing practices within the grain
industry.
SECTION 77. IC 26-4-6-8, AS AMENDED BY P.L.75-2010,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8. After the agency has determined that a grain
buyer or warehouse has defaulted payment or failed, had its license
revoked, the board shall have the following duties:
(1) Determine the valid claims and the amount of such claims to
be paid to claimants for financial losses that were incurred due to
the failure revocation of a license of a grain buyer or warehouse
operator.
(2) Investigate and question claimants as to their marketing
methods and the losses claimed by the claimants.
(3) Obtain credible documentation of any and all losses
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claimed by the claimants.
(4) Document, in writing, each claim by having the following
information presented and approved by the board:
(A) Name of the claimant.
(B) How long the grain had been stored or sold.
(C) If title passed, at what price the financial loss was
determined.
(D) If stored, at what price the financial loss was
determined.
(E) Whether the financial loss was a result of normal
marketing practices.
Any information submitted under this subdivision by the
claimant must be signed and affirmed under the penalties for
perjury.
(2) (5) Authorize payment of money from the fund when
necessary for the purpose of compensating claimants in
accordance with the provisions of this chapter.
(3) (6) Collect money through subrogated claims against bonds
filed under IC 26-3-7 in the place of claimants who collected for
a loss incurred due to a the revocation of a license of a
warehouse or grain buyer. failure.
(4) (7) Borrow money as authorized under IC 26-4-3-9 if the fund
has insufficient money to cover approved claims.
(5) (8) Deposit into the fund any remaining grain assets of a failed
grain buyer or warehouse operator whose license has been
revoked for the purpose of repayment to the fund the money used
to pay claimants, subject to any priority lien right a holder of a
mortgage, security interest, or other encumbrance may possess
under any other applicable law. Any repayment into the fund may
not exceed the principal amount paid to claimants plus interest at
the rate paid on ninety (90) day United States Treasury bills.
(6) (9) If the amount in the fund is insufficient to pay all approved
claims in accordance with this chapter and the board is unable to
borrow funds for whatever reason, authorize payment of all the
approved claims on a pro rata basis.
SECTION 78. IC 26-4-8-4 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 4. (a) A member of the board who knowingly violates
the terms of a confidentiality agreement executed under this article
commits a Class A misdemeanor.
(b) A person convicted of violating this section is ineligible to
serve on the board.
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SECTION 79. IC 35-52-15-1 IS REPEALED [EFFECTIVE JULY
1, 2025]. Sec. 1. IC 15-11-8-8 defines a crime concerning the Indiana
department of agriculture.
SECTION 80. IC 35-52-26-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 8.5. IC 26-3-7.5-9 defines a crime
concerning grain moisture testing equipment inspections.
SECTION 81. IC 35-52-26-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 12. IC 26-4-8-4 defines a crime
concerning members of the Indiana grain indemnity corporation
board.
SECTION 82. [EFFECTIVE JULY 1, 2025] (a) The following are
void:
(1) 824 IAC 1 (dealers and warehouse licensing and bonding).
(2) 824 IAC 2-2-1 (responsibility for compliance).
(3) 824 IAC 2-3-2 (expedited hearings).
(4) 824 IAC 2-4-2 (transferability).
(5) 824 IAC 2-4-3 (fees).
(6) 824 IAC 2-4-6(c) (insurance).
(7) 824 IAC 2-4-8 (net worth and market appraisals).
(8) 824 IAC 2-4-13 (inspection of scales).
(9) 824 IAC 2-4-14 (annual license renewal application).
(10) 824 IAC 2-5-1 (requirements for auditors).
(11) 824 IAC 2-8-2 (stored grain).
(12) 824 IAC 2-10-1 (stored grain).
(13) 824 IAC 2-11-1 (delivery back to the depositor).
(14) 824 IAC 2-13-1 (contracts requirements).
(15) 824 IAC 2-16-1 (contents of agency notices when a license
is suspended, revoked, or denied).
(16) 824 IAC 2-17 (hearing proceedings).
(17) 825 IAC 1 (grain indemnity corporation).
The publisher of the Indiana Administrative Code and Indiana
Register shall remove these provisions from the Indiana
Administrative Code.
(b) This SECTION expires July 1, 2026.
SECTION 83. [EFFECTIVE UPON PASSAGE] (a) Any rules
adopted by the Indiana state department of agriculture under
IC 15-11-8 in effect on June 30, 2025, are considered rules of the
Indiana grain buyers and warehouse licensing agency under
IC 26-3-7.5, as added by this act, on July 1, 2025.
(b) This SECTION expires July 1, 2030.
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SECTION 84. An emergency is declared for this act.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 461 — ConcurEvery fact on this page links to its source, starting with the official bill record.