HB 1647

MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Agriculture
By: Representative Pigott
House Bill 1647
(As Passed the House)
AN ACT TO ESTABLISH THE "MISSISSIPPI GRAIN INDEMNITY
ACT"; TO CREATE NEW SECTION 75-46-1, MISSISSIPPI CODE OF 1972, TO NAME THE
ACT AS SUCH; TO CREATE NEW SECTION 75-46-3, MISSISSIPPI CODE OF 1972, TO
PROVIDE FOR DEFINITIONS TO TERMINOLOGY USED IN THE ACT; TO CREATE NEW SECTION
75-46-5, MISSISSIPPI CODE OF 1972, TO ESTABLISH THE MISSISSIPPI GRAIN INDEMNITY
BOARD, PROVIDE FOR ITS COMPOSITION AND THE INITIAL AND SUBSEQUENT TERMS OF
BOARD MEMBERS; TO ESTABLISH THE MISSISSIPPI GRAIN INDEMNITY TRUST FUND AS A SPECIAL
FUND IN THE STATE TREASURY; TO STIPULATE THE USES OF MONIES DEPOSITED INTO THE
FUND; TO CREATE NEW SECTION 75-46-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT
THE FUND SHALL BE ADMINISTERED BY THE BOARD, WHICH SHALL HAVE AUTHORITY TO
CONTRACT WITH A THIRD PARTY TO ADMINISTER PAYMENTS AND HANDLE ALL ACCOUNTING
FUNCTIONS RELATED TO THE FUND; TO CREATE NEW SECTION 75-46-9, MISSISSIPPI CODE
OF 1972, TO REQUIRE GRAIN PRODUCERS TO PAY AN ASSESSMENT ON ALL MARKETED GRAIN
SOLD TO A FIRST PURCHASER LICENSEE BEGINNING ON JULY 1, 2022; TO CREATE NEW
SECTION 75-46-11, MISSISSIPPI CODE OF 1972, TO REQUIRE THE ASSESSMENT TO BE
COLLECTED BY THE FIRST PURCHASER LICENSEE OR ANY AGENT OR REPRESENTATIVE OF THE
LICENSEE, WHO SHALL DEDUCT SUCH ASSESSMENT FROM THE PURCHASE PRICE; TO
ESTABLISH THE DATE BY WHICH THE LICENSEES MUST SUBMIT ASSESSMENTS TO THE BOARD
FOLLOWING ITS COLLECTION; TO CREATE NEW SECTION 75-46-13, MISSISSIPPI CODE OF
1972, TO DESIGNATE THE ASSESSMENT COLLECTION PERIOD AND ESTABLISH AMOUNTS FOR
THRESHOLD TRUST FUND BALANCES; TO CREATE NEW SECTION 75-46-15, MISSISSIPPI CODE
OF 1972, TO REQUIRE FIRST PURCHASER LICENSEES TO MAINTAIN A LEDGER OF ALL
ASSESSMENTS COLLECTED, WHICH SUCH RECORDS SHALL BE MADE AVAILABLE TO THE BOARD
UPON REQUEST; TO LIMIT THE COMMISSIONER OF AGRICULTURE AND COMMERCE'S AUTHORITY
TO DISCLOSE INFORMATION OBTAINED FROM THE LEDGER OF ASSESSMENTS; TO CREATE NEW
SECTION 75-46-17, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PARTICIPATION IN
THE FUND IS VOLUNTARY; TO REQUIRE NONPARTICIPANTS TO NOTIFY THE COMMISSIONER BY
THE PRECEDING JUNE 1 OF SUCH YEAR THAT THE PRODUCER HAS OPTED OUT; TO PROVIDE
THAT NONPARTICIPATION IN THE FUND DISQUALIFIES SUCH INDIVIDUALS FROM RECEIPT OF
ANY PAYMENT FOR A CONTRACT OR STORAGE LOSS OF GRAIN PRODUCED DURING SUCH CROP
DUE TO THE FAILURE OF A FIRST PURCHASER LICENSEE; TO PROVIDE ADDITIONAL NOTICE
TO BE GIVEN TO THE FIRST PURCHASER LICENSEE; TO ALLOW A REFUND OF ASSESSMENTS
PAID TO PRODUCERS WHO OPT OUT OF THE FUND; TO CREATE NEW SECTION 75-46-19,
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER SHALL DETERMINE WHEN
A FIRST PURCHASER LICENSEE HAS FAILED; TO PRESCRIBE PROCEDURES TO BE FOLLOWED
BY THE COMMISSIONER UPON THE MAKING OF SUCH DETERMINATION OF FAILURE; TO CREATE
NEW SECTION 75-46-21, MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE PROCESS TO BE
FOLLOWED FOR THE TIMELY ADJUDICATION OF CLAIMS ALLEGING FAILURE OF FIRST
PURCHASER LICENSEES; TO CREATE NEW SECTION 75-46-23, MISSISSIPPI CODE OF 1972,
TO REQUIRE THE COMMISSIONER OR THE DESIGNEES TO MAKE A PRELIMINARY
DETERMINATION OF ELIGIBILITY FOR PAYMENT FROM THE FUND RESULTING FROM SUBMITTED
CLAIMS; TO PROVIDE THAT THE BOARD SHALL MAKE THE FINAL DETERMINATION ON
PAYMENTS OF CLAIMS; TO AUTHORIZE THE BOARD TO SEEK ANY ADDITIONAL INFORMATION
NECESSARY TO ADJUDICATE THE CLAIM; TO PRESCRIBE PROCEDURES TO BE FOLLOWED WHEN
ONLY A PARTIAL PAYMENT OF CLAIM IS MADE; TO SPECIFY THE TIMELINE FOR CERTAIN
RESPONSES AND ACTIONS BY THE BOARD AND CLAIMANT; TO PROVIDE CLAIMANTS WITH AN
OPTION TO REQUEST A REVIEW OF THE BOARD'S FINAL ADJUDICATION OF THE CLAIM; TO
PROVIDE FOR ADMINISTRATIVE PROCEDURES PROCESS FOR APPEALS OF THE BOARD'S FINAL
ADJUDICATION; TO CREATE NEW SECTION 75-46-25, MISSISSIPPI CODE OF 1972, TO
PRESCRIBE THE METHOD OF CALCULATING THE PAYMENT OF CLAIMS FOR STORAGE OR
CONTRACT LOSSES SUFFERED; TO CREATE NEW SECTION 75-46-27, MISSISSIPPI CODE OF
1972, TO REQUIRE THE BOARD TO MAKE PAYMENTS OF CLAIMS ON A PRO RATA BASIS AT
ANY TIME THE TOTAL AMOUNT OF ELIGIBLE CLAIMS EXCEEDS THE AMOUNT OF FUNDS
AVAILABLE; TO CREATE NEW SECTION 75-46-29, MISSISSIPPI CODE OF 1972, TO PROVIDE
THE COMMISSIONER WITH THE AUTHORITY TO REVOKE THE LICENSE OF A FIRST PURCHASER
LICENSEE FOR FAILURE TO TIMELY COLLECT AND SUBMIT ASSESSMENTS TO THE BOARD; TO
CREATE NEW SECTION 75-46-31, MISSISSIPPI CODE OF 1972, TO REQUIRE THE
COMMISSIONER TO ESTABLISH A TOLL-FREE HOTLINE AND OTHER INFORMATION COLLECTION
PROCESSES FOR THE PURPOSES OF RECEIVING INFORMATION ON LICENSEE FAILURE TO
PERFORM; TO CREATE NEW SECTION 75-46-33, MISSISSIPPI CODE OF 1972, TO PROVIDE
FOR THE INSPECTION OF THE BOARD'S RECORDS, ACCOUNTS AND OTHER DOCUMENTS BY THE
OFFICE OF THE STATE AUDITOR; TO CREATE NEW SECTION 75-46-35, MISSISSIPPI CODE
OF 1972, TO AUTHORIZE THE BOARD TO ADOPT ANY RULES AND REGULATIONS DEEMED
NECESSARY TO ADMINISTER THE ACT; TO CREATE NEW SECTION 75-46-37, MISSISSIPPI
CODE OF 1972, TO AUTHORIZE THE BOARD TO ADOPT NECESSARY RULES AND REGULATIONS
TO CARRY OUT THE PROVISIONS OF THIS ACT; TO AMEND SECTIONS 75-44-29, 75-44-31,
75-44-35, 75-45-304, 75-45-305, 75-45-307 AND 75-45-311, MISSISSIPPI CODE OF
1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.
���� BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:
���� SECTION 1.� The
following shall be codified as Section 75-46-1, Mississippi Code of 1972:
���� 75-46-1.� This
chapter shall be known as the "Mississippi Grain Indemnity Act."
���� SECTION 2.� The
following shall be codified as Section 75-46-3, Mississippi Code of 1972:
���� 75-46-3.� As
used in this act, the following terms shall have the meaning ascribed in this
section, unless the context clearly requires otherwise:
��������� (a)�
"Assessment" means the assessment established pursuant to Section 75-46-9.
��������� (b)� "Board"
means the Mississippi Grain Indemnity Trust Fund Board.
��������� (c)�
"Claimant" means a producer who:
������������� (i)� Has suffered
either a "contract loss" or
"storage loss" as
defined herein;
������������� (ii)� Has filed a
claim pursuant to this chapter and any rules issued by the board under this
chapter;
������������� (iii)� Has paid
assessment into the Mississippi Grain Indemnity Trust Fund, including payments
made pursuant to Section 75-46-17(5), or is a new producer; and
������������� (iv)� Has not opted
out of paying the assessment pursuant to Section 75-46-17.
��������� (d)�
"Commissioner" means the Commissioner of Agriculture and Commerce for
the State of Mississippi or his or her designee.
��������� (e)� "Contract
loss" means a loss to a claimant when a first purchaser licensee who has
failed, has not fully paid the claimant for grain sold to the licensee under
any type of sales contract.
��������� (f)�
"Department" means the Mississippi Department of Agriculture and
Commerce.
��������� (g)� "Failed"
or "failure" means:
������������� (i)� Nonpayment of
a first purchaser licensee's debts to a producer or inability of a first
purchaser licensee to satisfy all financial obligations due to a producer,
unless there is a good faith dispute regarding the legitimacy of the debt;
������������� (ii)� A declaration
of insolvency of a first purchaser licensee by the licensee or by the
commissioner;
������������� (iii)� Revocation
or suspension of the first purchaser licensee's license by the State of
Mississippi or the United States Department of Agriculture, if the licensee has
outstanding indebtedness owed to producers or claimants;
������������� (iv)� Voluntary
surrender of a first purchaser licensee's license to the State of Mississippi
or the United States Department of Agriculture, if the licensee has outstanding
indebtedness owed to claimants; or
������������� (v)� The filing of
an involuntary or voluntary petition for bankruptcy with regard to a first
purchaser licensee.
��������� (h)� "First
purchaser licensee" means a person who is the first entity to purchase
grain or is paid to store grain produced in Mississippi from producers, and is:
������������� (i)� Licensed by
the State of Mississippi to store grain under Chapter 44, Title 75, Mississippi
Code of 1972;
������������� (ii)� Licensed by
the State of Mississippi to act as a grain dealer under Chapter 45, Title 75,
Mississippi Code of 1972; or
������������� (iii)� Licensed by
the United States under the United States Warehouse Act to store grain and has
entered into a cooperative agreement with the department.
��������� (i)� "Fund"
means the Mississippi Grain Indemnity Trust Fund.
��������� (j)� "Grain"
means whole kernel corn for all purposes, soybeans and wheat grown in the State
of Mississippi.� Grain does not include sweet corn, popcorn and any other corn
for human consumption.
��������� (k)� "Mississippi
Grain Indemnity Trust Fund" means the fund established as provided in this
chapter.
��������� (l)� "Mississippi
Grain Indemnity Trust Fund Board" means the board established under
Section 75-46-5.
��������� (m)� "New
producer" means a producer who produced grain only after the payment and collection
of the assessment was suspended pursuant to Section 75-46-13.� The term
"new producer" does not include a producer who opted out of payment of
the assessment pursuant to Section 75-46-17.
��������� (n)� "Person"
means a natural person, trust, partnership, corporation or any other business
entity.
��������� (o)�
"Producer" or "producers" means the owners, tenants or
operators of land in this state who possess an interest in and receives all or
any part of the proceeds from the sale of grain produced thereon.
��������� (p)� "Storage
loss" means a loss to a producer or claimant when a failed first purchaser
licensee, who has failed, has not fully satisfied the licensee's storage
obligations for grain to the producer or claimant, less any allowable charges
that have not been paid by the producer or claimant.
���� SECTION 3.� The
following shall be codified as Section 75-46-5, Mississippi Code of 1972:
���� 75-46-5.� (1)�
(a)� There is hereby created the Mississippi Grain
Indemnity Board, which is established for the purposes of administering and
overseeing the Grain Indemnity Fund and providing a process by which producers
growing and selling grain in the State of Mississippi can make claims for
contract losses due to a failure of a grain dealer licensed by the State of
Mississippi under Chapter 45, Title 75, Mississippi Code of 1972, and for
contract and storage losses due to the failure of a grain warehouse operator
licensed by the State of Mississippi under Chapter 44, Title 75, Mississippi
Code of 1972, or by the United States Department of Agriculture under the
United States Warehouse Act.
���� (2)� The board shall consist
of the following voting members:
��������� (a)� The commissioner
who shall be the chairperson of the board;
��������� (b)� Two (2) members
selected by the Governor;
��������� (c)� Two (2) members
selected by the Lieutenant Governor; and
��������� (d)� Two (2) members
selected by the Speaker of the House of Representatives, who shall be active Mississippi
grain farmers.�
���� All board members appointed
under paragraphs (b) through (d) of this subsection shall have demonstrated
knowledge and expertise in the production, marketing and storage of grain.
���� (3)� Members of the initial
board shall be appointed as follows:�
������������� (i)� The Governor
shall appoint members for terms of one (1) and three (3) years;
������������� (ii)� The
Lieutenant Governor shall appoint members for two (2) and four (4) years; and
������������� (iii)� The Speaker
of the House of Representatives shall appoint members for one (1) and three (3)
years.
���� Following the initial board,
subsequent members appointed to the board shall serve a term of four (4) years
with staggered expiration dates.� Members of the board shall, while serving on
business of the board, be entitled to receive as compensation a per diem, as
provided by law, in addition to any actual and necessary expenses incurred in
the performance of the official duties of the board.� The commissioner may call
a meeting of the board upon reasonable notice to the board members.
���� (4)� There is created in the
State Treasury a special fund to be designated the "Mississippi Grain
Indemnity Trust Fund."� Funds collected by or appropriated to the board
shall be held in trust by the State Treasurer for use and benefit of the board,
only to pay claimants and costs for the administration of this chapter.�
Claimants shall be accorded rights under this act.� The fund shall consist of:
��������� (a)� Money collected
under this chapter;
��������� (b)� Interest earned on
any money in the fund;
��������� (c)� Any funds
appropriated by the Legislature or any other public or private source; and
��������� (d)� Any bond proceeds
or other financial obligation in
favor of the commissioner as
provided in Sections 75-44-29 and 75-45-305, or other financial obligations in
favor of the commissioner, as provided in Sections 75-44-29 and 75-45-305.
���� (5)� Amounts in the fund may
be invested and reinvested at the discretion of the State Treasurer in
cooperation with the board.� Interest from these investments shall be deposited
in the fund and shall be available for the same purposes as other monies
deposited in the fund.� The monies in the fund shall not be available for any
purpose other than those specified in subsection (2) of this section.
���� (6)� The grain indemnity
fund shall operate on a fiscal year basis of July 1 to June 30.� The board may
accept and expend funds deposited into the grain indemnity fund and funds not
expended at the end of the fiscal year shall remain in the grain indemnity fund
and said funds shall not lapse or otherwise be placed into the State General
Fund, and any investment earnings or interest earned on such accounts shall be
deposited only to the credit of the grain indemnity fund.� Administrative costs
such as those enumerated at Section 75-46-7, associated with administering the
grain indemnity fund shall not exceed Two Hundred Thousand Dollars
($200,000.00) per fiscal year, unless claims are filed and being administered.�
In such case, the administrative costs shall not exceed Five Hundred Thousand
Dollars ($500,000.00) per fiscal year while claims are ongoing and/or being
administered from year to year.� A report detailing administrative costs shall
be filed by the board annually with the Legislature by December 1 of each year.
���� SECTION 4.� The
following shall be codified as Section 75-46-7, Mississippi Code of 1972:
���� 75-46-7.� (1)�
The fund shall be administered by the board.� All payments made to claimants
under this chapter may only be made with board approval, and the board shall
provide advice to the commissioner on the day-to-day operation of the fund.�
The board shall have the authority to contract with individuals and entities
regarding:
��������� (a)� Claims
administration;
��������� (b)� Legal, accounting,
audits and financial matters; and
��������� (c)� Any other matters
the board deems appropriate.�
���� (2)� Subject to approval of
the board, the commissioner shall be responsible for the day-to-day operation
of the fund including the disbursement of payments approved by the board under
subsection (1) of this section.� The department is authorized to make such
disbursement to claimants on behalf of the board without further appropriation
by the Legislature.
���� SECTION 5.� The
following shall be codified as Section 75-46-9, Mississippi Code of 1972:
���� 75-46-9.� Beginning
on January 1, 2027, producers of grain shall be charged an assessment equal to
two-tenths percent (0.2%) of the price on all marketed grain that is sold to a
first purchaser licensee.
���� SECTION 6.� The
following shall be codified as Section 75-46-11, Mississippi Code of 1972:
���� 75-46-11.� Assessments
shall be collected by the first purchaser licensee and by any agent or
representative of the licensee.� The first purchaser licensee shall deduct the
assessment from the purchase price of the grain and shall document the amount
of the assessment that was deducted on an invoice provided to the producer.�
The first purchaser licensee shall submit monthly assessments to the department
on behalf of the board by the twentieth day of the following month.
���� SECTION 7.� The
following shall be codified as Section 75-46-13, Mississippi Code of 1972:
���� 75-46-13.� (1)�
Initial assessments shall be collected beginning January 1, 2027, and shall be
collected until the board determines that the amount in the fund is Twenty-five
Million Dollars ($25,000,000.00).
���� (2)� If the amount in the
fund is less than Twenty-five Million Dollars ($25,000,000.00) or the board has
determined that the failure of a first purchaser licensee will likely result in
the issuance of payments to claimants that will reduce the amount in the fund
to less than Twenty Million Dollars ($20,000,000.00) at the end of the current
fiscal year, assessments shall be required beginning January 1 of the following
calendar year.�
���� (3)� If the amount in the
fund exceeds Twenty-five Million Dollars ($25,000,000.00) at any time during a
calendar year when assessments are being collected, assessments shall continue
until the end of such calendar year without regard to the maximum amount
authorized to be in the fund.
���� SECTION 8.� The
following shall be codified as Section 75-46-15, Mississippi Code of 1972:
���� 75-46-15.� First
purchaser licensees shall maintain a ledger of all assessments collected by the
licensee that specifies the date of the collection, from whom the assessment
was collected, and the amount of the assessment collected.� Ledgers for the
corresponding time frame shall be submitted to the department in conjunction
with the payment of assessments required by Section 75-46-11.
���� SECTION 9.� The following
shall be codified as Section 75-46-17, Mississippi Code of 1972:
���� 75-46-17.� (1)�
Participation by producers in the grain indemnity fund is voluntary, pursuant
to subsection (2) of this section.�
���� (2)� During any calendar
year in which assessments are collected under this chapter, a producer who does
not desire to pay the assessment set forth at Section 75-46-9 must notify the
department in writing by March 1st of such year.� Such written notice must be
submitted on an official form provided by the department.� Within thirty (30)
days of receipt of the form, the department must send to the producer and the
board an executed copy of the form or other official acknowledgement that the
producer has opted out of the payment of the assessment.� The department shall
also enter as soon as practicable the producer's name into a publicly available
live registry made available through the department website.� The effective opt
out date shall be the date upon which the department sends to the producer an
executed copy of the form or other official acknowledgement that the producer
has opted out of the payment of the assessment, or March 1 if said executed
form or other official acknowledgment is sent after March 1.
���� (3)� Subject to subsection
(5) and subsection (8) of this section, a producer who, pursuant to subsection
(2) of this section, opts out of the payment of the assessment shall not be
eligible to be a claimant or otherwise be eligible to receive any past or
future payment or benefit from the grain indemnity fund beginning January 1 of
the calendar year in which the producer opted out of the payment of the
assessment.� A producer who opts out of payment of the assessment pursuant to
subsection (2) of this section shall remain permanently ineligible to be a
claimant until that producer has fully satisfied the requirements of subsection
(5) of this section.
���� (4)� A producer who pursuant
to subsection (2) of this section opts out of payment of the assessment must
notify any first purchaser licensee of� the election to opt out of the payment
of the assessment.� Subject to Section 75-46-29, the first purchaser licensee
may require the producer to provide a copy of the executed copy of the form or
other official acknowledgement referenced in subsection (1) of this section.�
���� (5)� A producer who has
pursuant to subsection (2) of this section opted out of payment of the
assessment, may begin paying assessments only upon the satisfaction of the
following requirements:
��������� (a)� 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 to begin paying assessments in a form required by the board;
��������� (b)� The board reviews
the producer's petition for reentry and, subject to satisfying the requirement
of paragraph (c) of this subsection (5), approves the petition;
��������� (c)� The producer pays
into the fund:
������������� (i)� The year-over-year
amount that would have been paid in since January 1 of the year in which the
producer requested to opt out pursuant subsection (b) of this section; and
������������� (ii)� Interest on
the year-over-year amount, as determined by the board.
���� (6)� A producer who satisfies
the requirements of subsection (5) of this section is eligible to be a claimant
beginning ninety (90) days after the board approves the petition for reentry.
���� (7)� If an assessment is
collected by a first purchaser licensee from a producer during the same
calendar year the producer opted out of payment of the assessment pursuant to
subsection (2) of this section, the producer may obtain a refund of the amount
paid in the manner and on a form established by the board.
���� (8)� In the event the
payment and collection of assessments is suspended pursuant to Section 75-46-13
but before the payment of assessments is reinstituted by the board:
��������� (a)� A new producer who
has experienced a contract loss or a storage loss may elect to be a claimant
but in so doing shall not be eligible to opt out of paying the assessment for
five calendar years following January 1 of the year in which the payment and
collection of assessments is reinstituted by the board; and
��������� (b)� A producer who
pursuant to subsection (5) of this section reentered the payment of assessments
shall not be eligible to opt out of paying the assessment for five calendar
years following January 1 of the year in which the payment and collection of
assessments is reinstituted by the board.�
���� (9)� A producer who pursuant
to subsection (2) of this section opts out of the payment of the assessment in
a calendar year is eligible to be a claimant for a contract loss or a storage
loss that occurred in relation to grain delivered during the prior calendar
year, if the producer paid the assessments in the prior calendar year, so long
as the producer has a binding legal agreement with the first purchaser licensee
to receive full payment for said grain from the first purchaser licensee before
March 1 of the calendar year in which the producer opted out of the payment of
the assessment.
���� SECTION 10.� The
following shall be codified as Section 75-46-19, Mississippi Code of 1972:
���� 75-46-19.� The
Commissioner shall be responsible for determining when a first purchaser licensee
has failed and/or when a failure has occurred.� Upon making such a
determination, the Commissioner shall have the authority to call a special
meeting of the board on three (3) days notice or shorter if agreed to by the
board members.� The Commissioner shall issue a legal notice in a paper of
general circulation once a week for two (2) consecutive weeks in the county or
counties in which the first purchaser licensee operates setting forth the name
of the failed first purchaser licensee and details on how a producer may file a
claim for a payment from the grain indemnity fund.� The Commissioner shall take
any other action the Commissioner deems to be appropriate to provide notice to
affected producers.
���� SECTION 11.� The
following shall be codified as Section 75-46-21, Mississippi Code of 1972:
���� 75-46-21.� (1)�
The board is authorized to promulgate rules and regulations necessary for the
operation of the board and to provide for a timely process to receive and
adjudicate claims submitted in connection to the failure of a first purchaser
licensee.�
���� Claims submitted to the
board must, at a minimum, meet the following requirements:
��������� (a)� Must be on a form
prescribed by the board;
��������� (b)� Must be submitted
not later than ninety (90) days after the announcement made by the Commissioner
under Section 75-46-19;
��������� (c)� Must include a
copy of the written agreement for the sale or storage of grain to the failed
first purchaser licensee by the producer;
��������� (d)� Must be made under
oath subject to the penalty of perjury, set forth the relevant circumstances,
and attest that the amount claimed to be owed for the sale of grain to the
failed first purchaser licensee by the producer is true and correct; and
��������� (e)� Must submit a copy
of any warehouse receipt, scale ticket or other similar document showing the
delivery of grain by the producer to the failed first purchaser licensee.
��������� (f)� Cannot be a claim
for a contract loss or a storage loss arising from a deferred purchase.�
���� (2)� Additionally, claimants
must file a claim with the Commissioner against the bond or other pledged
financial assets as set forth in Section 75-44-35 and Section 75-45-311.� In
the event claimant is fully compensated for his/her storage loss or contract
loss, the claimant's claims under the bond shall be assigned as a matter of law
to the Commissioner.� Any such recovery on the bond shall be deposited into the
grain indemnity fund by the Commissioner.
���� (3)� The board may authorize
the Commissioner to extend the time for filing a claim upon a finding that
extenuating circumstances exist that warrant an extension.
���� SECTION 12.� The
following shall be codified as Section 75-46-23, Mississippi Code of 1972:
���� 75-46-23.� (1)�
All claims submitted to the board shall be reviewed by a designee or designees
of the board.� The designees shall make a preliminary determination regarding
the eligibility for payment from the fund.� If the preliminary determination
provides that less than the full amount of the claimed loss should be paid, the
determination shall set forth an explanation of why the lesser amount, if any,
should be paid.� All preliminary determinations shall be provided to the board
for a final review and determination of eligibility for payment from the fund.
���� (2)� The board or its
designee may request additional information from a claimant determined to be
necessary for adjudication of the claim.� The claimant may provide an
opportunity to provide oral testimony to the board or its designee.
���� (3)� If a claim is denied in
whole or in part, the board shall provide a written determination to the
claimant which will set forth the amount, if any, to be awarded.� The
determination shall be set forth the basis for the board's decision to include
an explanation why a partial payment was made.
���� (4)� Within thirty (30) days
of the receipt of the determination in which a claim has been denied in whole
or in part, a claimant may file with the board a request for reconsideration of
the claim.� The board in its discretion, may accept or deny the request for
reconsideration.� The board's decision shall be in writing and forwarded to the
claimant.
���� (5)� A claimant may seek
review of a final determination of the board by filing an appeal with the
Chancery Court of the First Judicial District of Hinds County, Mississippi.�
The appeal must be filed within thirty (30) days of the date of the final
determination or where reconsideration has been requested within thirty (30)
days of the date of the board's decision to deny reconsideration.� The chancery
court shall render a decision based on the administrative record prepared by
the board without a trial by jury.� The chancery court's decision may then be
appealed to the Mississippi Supreme Court.� Any such appeal to chancery court
or to the Supreme Court shall be in accordance with existing laws and
regulations governing such appeals.� Neither an appeal to chancery court or any
other legal or equitable action against the board with regard to payment or
reconsideration of a claim shall be appropriate until the board has made a
final determination.
���� (6)� The board shall have
subpoena power for witnesses to attend hearings and for production of documents
for any and all proceedings under the board's jurisdiction.� The subpoenas
shall be enforced by the chancery court of the residence of the witness.�
���� SECTION 13.� The
following shall be codified as Section 75-46-25, Mississippi Code of 1972:
���� 75-46-25.� (1)�
Subject to Section 75-46-27, claims for storage losses shall be paid at one
hundred percent (100%) of the amount of loss of the claimant less any amount
received by the claimant from any other source.� The value of the grain subject
to the claim shall be the market price of the grain as determined by the board
as of the date of failure of the first purchaser licensee.� The board may
adjust the value of the grain subject to the claim if there is sufficient
evidence on a warehouse receipt, scale ticket or other similar document showing
the quality of the grain.
���� (2)� (a)� Subject to Section
75-46-27, claims for contract losses shall be paid at one hundred percent
(100%) of the amount of loss of the claimant less any amount received by the
claimant from any other source including the sale of the grain to another
entity.� The board shall use the purchase price set forth in the contract for
sale to determine the amount of loss.� If a specific purchase price amount is
not set forth in the contract, the board in its discretion may establish the
price of grain to be used to determine claims amounts.� In making this
determination, the board may consider such factors as it deems are relevant,
including without limitation, normal marketing practices, the need to make
timely payments, and the risk of harm to producers if payments are delayed due
to having to await a future price determination.
��������� (b)� A claim for a
contract loss shall not be approved by the board if the claimant engaged in
conduct or practices that differ from generally accepted marketing practices
within the grain industry to an extent the claimant's actions have
substantially contributed to the claimant's loss.
��������� (c)� A failed first
purchaser licensee may not file a
claim for payment from the fund
for any loss associated with a grain warehouse owned in whole or in part by the
licensee or a person that is a grain dealer owned in whole or in part by the
licensee.
��������� (d)� Payments from the
grain indemnity fund shall be available for storage and contract losses
incurred with respect to crops produced after January 1, 2027.
���� SECTION 14.� The
following shall be codified as Section 75-46-27, Mississippi Code of 1972:
���� 75-46-27.� If
the total amount of eligible claims exceeds the amount of funds available to
the board from the fund, the board shall make initial payments on a pro rata
basis.� Assessments subsequently collected and submitted to the fund shall not
be used to make an additional payment for prior payments made at less than the
full amount.
���� SECTION 15.� The
following shall be codified as Section 75-46-29, Mississippi Code of 1972:
���� 75-46-29.� The
failure of a first purchaser licensee to timely collect and submit assessments
required by Section 75-46-11 of this act shall be basis for the commissioner to
revoke a license issued to the licensee under Sections 75-44-23 and 75-45-309.
���� SECTION 16.� The
following shall be codified as Section 75-46-31, Mississippi Code of 1972:
���� 75-46-31.� The
commissioner shall establish a toll-free hotline and other information
collection processes for the purposes of receiving information concerning the
failure of a first purchaser licensee to make timely payments for the purchase
of grain and information concerning any suspected fraudulent activity of a
first purchaser licensee.� Upon receipt of information from the hotline or
other information collection processes established by the commissioner, the
commissioner shall take such action as the commissioner determines to be
appropriate including referral of the matter to the Attorney General.�
Information received through the hotline shall not be subject to disclosure.
���� SECTION 17.� The
following shall be codified as Section 75-46-33, Mississippi Code of 1972:
���� 75-46-33.� All the
board's books, records, accounts, and other papers shall be subject to
inspection, copying and audit by the Office of the State Auditor at any time.
���� ��� SECTION 18.�
The following shall be codified as Section 75-46-35, Mississippi Code of 1972:
���� 75-46-35.� (1)� A
claimant fully compensated under this chapter shall as a matter of law be
deemed to have subrogated all claimant's rights on a bond
or other pledged financial assets set forth in Sections 75-44-29 and 75-45-305
and all the claimant's rights to any other compensation from the grain dealer
or warehouse operator.
���� (2)� To the extent
that a claimant who is fully compensated
under this Chapter also is entitled
to recover under the bonds, set forth in
Sections 75-44-29 and 75-45-305, the amount that would be otherwise owed to the
claimant of proceeds of the bonds or other
pledged financial assets set forth in Sections 75-44-29 and 75-45-305 as
alternatives to posting a bond shall be deposited in the grain indemnity fund
by Commissioner for the benefit of the grain indemnity fund.� The Commissioner shall take such steps
including legal action as required to ensure such bond proceeds shall be
deposited in accordance with this section.
���� SECTION 19.� The
following shall be codified as Section 75-46-37, Mississippi Code of 1972:
���� 75-46-37.� The
board may adopt any and all rules and regulations deemed necessary or desirable
by the board to carry out the powers and duties of the board, including, but
not limited to, the collection and receipt of assessments, the procedure for
adjudicating the claims of loss by the producers, the refunding of assessment
to producers and the subrogation of procedures' claims against a warehouse or
dealer in return for payment from the trust fund.
���� SECTION 20.� Section
75-44-29, Mississippi Code of 1972, is amended as follows:
���� 75-44-29.� (1)� Before any
person is granted a license pursuant to Section 75-44-23 such person shall give
a bond to the commissioner executed by the grain warehouseman as principal and
by a corporate surety licensed to do business in this state as a surety.� The
bond shall be in favor of the commissioner for the benefit of all persons
interested, their legal representatives, attorneys or assigns, conditioned upon
the faithful compliance by the grain warehouseman with the provisions of this
chapter, the provision of the "Mississippi Grain Dealers Law of
1978," authorized under Article 7, Title 75, Chapter 45, Mississippi Code
of 1972, and the rules and regulations of the State Department of Agriculture
and Commerce applicable thereto.� The aggregate liability of the surety to all
depositors or storers of grain * * *shall not exceed the sum of such bond under
this chapter and to sellers of grain under the "Mississippi Grain Dealers
Law of 1978" shall not exceed the sum of such bond.� However, the
liability under a bond additionally issued under the "Mississippi Grain
Dealers Law of 1978" shall not be limited by payment under the bond
required under this chapter.� The bond may be cancelled at any time by the
surety by giving written notice to the Commissioner of Agriculture and Commerce
of its intention to cancel the bond and all liability thereunder shall
terminate thirty-five (35) days after the mailing of such notice except that
such notice shall not affect any claims arising under the bond, whether
presented or not, before the effective date of the cancellation notice.
���� (2)� In lieu of the bond
required in subsection (1) of this section an applicant for a license may be a
self-insurer by posting with the commissioner any of the following:
��������� (a)� Cash;
��������� (b)� Certificates of
deposit from any bank or banking corporation insured by the Federal Deposit
Insurance Corporation;
��������� (c)� Irrevocable
letters of credit from any bank or banking corporation insured by the Federal
Deposit Insurance Corporation;
��������� (d)� Federal treasury
bills; or
��������� (e)� Notes, securities
or bonds secured by the federal government or the State of Mississippi.
���� Self insurers shall post an
amount equivalent to the amount of the bond required in Section 75-44-31.
���� SECTION 21.� Section
75-44-31, Mississippi Code of 1972, is amended as follows:
���� 75-44-31.� (1)� The amount
of bond to be furnished for each grain warehouse shall be fixed at a rate of
twenty-five cents (25�) per bushel for the first one million (1,000,000)
bushels of licensed capacity; twenty cents (20�) per bushel for the next one
million (1,000,000) bushels of licensed capacity; and fifteen cents (15�) per
bushel for all licensed capacity over two million (2,000,000) bushels; provided
that in no case shall the amount of the bond be less than fifteen thousand
dollars ($15,000.00) or more than one million dollars ($1,000,000.00), except
as prescribed in subsection (3) of this section.� The licensed capacity shall
be equal to the maximum number of bushels of grain that the grain warehouse can
accommodate for storage.� In no event shall the liability of the surety
accumulate for each successive license period during which this bond is in
force, but shall be limited in the aggregate to the bond amount or changed by
appropriate rider or endorsement.
���� (2)� A grain warehouseman
who is licensed or is applying for licenses to operate two (2) or more grain
warehouses may give a single bond meeting the requirements of this chapter to
cover all such grain warehouses within the state.� In such cases all grain
warehouses to be covered by the bond shall be deemed to be one (1) warehouse
for purposes of determining the amount of bond required under subsection (1) of
this section.
���� (3)� In case of a deficiency
in the net assets required by Section 75-44-21, there shall be added to the
amount of the bond determined in accordance with subsection (1) of this section
an amount equal to such deficiency.� In any other case in which the
commissioner finds that conditions exist which warrant requiring additional
bond, there shall be added to the amount of bond such further amount as is
determined to be reasonable by the commissioner.
���� (4)� If a public grain
warehouseman is licensed under this chapter and also conducts grain
transactions under the "Mississippi Grain Dealers Law of 1978"
authorized under Article 7 of Title 75, Chapter 45, Mississippi Code of 1972,
the entire bond, in addition to any other required bond, shall be available to
satisfy claims filed under this chapter and the Mississippi Grain Dealers Law
of 1978.
���� SECTION 22.� Section
75-44-35, Mississippi Code of 1972, is amended as follows:
���� 75-44-35.� (1)� It shall be
the duty of the grain warehouseman to deliver grain to the holder of a warehouse
receipt within ten (10) days of the demand for the redemption of such
receipt.�� In the event the grain warehouseman fails to deliver grain to the
holder of a warehouse receipt within ten (10) days of the demand the holder of
the warehouse receipt may make demand of the surety for payment under the
bond.� The surety has the responsibility to pay within fifteen (15) days
following receipt by the surety of the notice of the demand for redemption.�
Any holder of a warehouse receipt issued by a grain warehouseman who has made
demand for redemption of such receipt, which demand was, without lawful excuse,
not satisfied within ten (10) days, shall notify the commissioner in writing
and the holder shall have the right to * * *bring action file a claim with the
commissioner against the grain warehouseman and the surety on the grain
warehouseman's bond for payment of the market value of the grain represented by
such warehouse receipt, such market value to be determined as of the date of
the demand, plus legal interest accrued from the date of the demand.� In the
event the grain warehouseman is a self-insurer as provided in Section 75-44-29
the holder of a warehouse receipt shall have the right to * * *bring action file a claim with the
commissioner against the grain warehouseman to the extent of the amount
posted in lieu of the bond.  * * *The commissioner shall pay to the holder of the warehouse
receipt, to the extent of the bond posted, any judgment obtained by the holder
of a warehouse receipt against a self‑insurer. The
commissioner may also pay to the holder of a warehouse receipt the amount of
the market value of the grain provided that the grain warehouseman agrees to
such payment * * *;
provided, however, the license of the grain warehouseman shall be suspended
upon such payment until such time as the warehouseman posts a bond as provided
in this chapter or posts with the commissioner a sum equivalent to that paid by
the commissioner on behalf of such warehouseman.
���� (2)  * * *In all actions in which judgment is rendered against any
surety company under the provisions of this section, if it appears from
evidence that the surety company has wilfully and without just cause refused to
pay the loss upon demand, the court in rendering judgment shall allow the plaintiff
the amount of the plaintiff's expenses including court costs and attorney's
fees, to be recovered and collected as part of the costs. The amount of any
payment of costs and attorney's fees under this subsection will not reduce the
surety's remaining liability on its bond. (a)� Upon receipt of
any claim, the commissioner shall provide written notice, via certified mail,
return receipt requested, to the warehouseman and the corporate surety of the
claims.� The notice shall be effective upon receipt of proof of delivery or a
receipt marked as refused delivery.� If the commissioner determines, in his or
her opinion, that there are or may be other competing claims as to bond, the
commissioner shall give notice to other interested parties, which shall include
the holders of outstanding and uncanceled receipts and scale tickets, any
person having a claim for payment under Section 75-45-311, and any other person
or party claiming any rights under the bond.� The notice shall be deemed
complete and sufficient upon the publication once per week for three (3)
consecutive weeks in a newspaper of general circulation.� The commissioner
shall promulgate regulations which shall govern the procedure and process to be
followed in the hearing.� The regulations shall, among other things, set forth
the county or counties, depending on whether the licensee is a warehouseman,
grain dealer, individual or corporate entity or resident or nonresident, in
which publication of notice hereunder shall be made.
��������� (b)� The
commissioner or his designated representative, hereinafter "hearing
officer," shall hear evidence and determine whether a loss has occurred.�
Upon a determination that a loss has occurred, the hearing officer shall
determine the date of the loss, the fair market value at the place of loss or
in the region immediately surrounding the place of loss, whether payments
should be made by the corporate surety and, if so, to what parties and in what
amounts.� Recovery under the bond shall be prorated by the hearing officer when
the claims exceed the liability of the corporate surety under the bond.� The
burden of establishing the proration shall be on the corporate surety as a
matter of defense.� The hearing officer shall enter a written order determining
the validity of claims under the bond and setting forth those claimants who are
entitled to recover thereunder.� The order shall be final, binding and
conclusive on all interested parties.� The order shall be sent by registered or
certified mail to all interested parties who appeared in the hearing.� Within
thirty (30) days after the mailing of said order, any interested party, if
dissatisfied with the order of the hearing officer, may appeal to the Chancery
Court of the First Judicial District of Hinds County, Mississippi, by filing a
written notice of appeal alleging the pertinent facts upon which the appeal is
grounded.� At the time of the filing of the appeal, the appellant shall give a
bond for costs conditioned upon his prosecution of the appeal without delay and
payment of all costs assessed against him.� Appeal may be with supersedeas and
shall be subject to the provisions of Section 11-51-31.
���� (3)� Where a warehouseman
licensed under this chapter is involved in the hearing, the claim determination
provisions of this chapter are applicable to claims arising both under this
chapter and Article 7, Title 75, Chapter 45, Mississippi Code of 1972.
���� SECTION 23.� Section
75-45-304, Mississippi Code of 1972, is amended as follows:
���� 75-45-304.� No person shall
operate as a grain dealer without first having obtained a license pursuant to
this article; provided, however, that grain dealers licensed under the
provisions of the United States Warehouse Act, as amended, or the Mississippi
Grain Warehouse Law shall not be required to have a license issued pursuant to
this article.� Notwithstanding this section, a person licensed under the
Mississippi Grain Warehouse Law who also conducts grain dealer transactions
within the meaning of the Mississippi Grain Dealers Law of 1978 shall be
required to post the bond required in Section 75-45-305.
���� SECTION 24.� Section
75-45-305, Mississippi Code of 1972, is amended as follows:
���� 75-45-305.� (1)� Every
person licensed as a grain dealer shall have filed with the department a surety
bond signed by the dealer as principal and by a responsible company authorized
to execute surety bonds within the State of Mississippi.� A grain dealer may
file with the department, in lieu of a surety bond, a certificate of deposit or
irrevocable letter of credit from any bank or banking corporation insured by
the Federal Deposit Insurance Corporation, payable to the commissioner, as
trustee.� The principal amount of the certificate of deposit or the amount of
the letter of credit shall be the same as that required for a surety bond under
this article and the interest thereon shall be made payable to the purchaser
thereof.� Such bond shall be a principal amount (to the nearest One Thousand
Dollars ($1,000.00)) equal to ten percent (10%) of the aggregate dollar amount
paid, by the dealer to producers for grain purchased from them during the
dealer's last completed fiscal year or in the case of a dealer who has been
engaged in business as a grain dealer for less than one (1) year or who has not
theretofore engaged in such business, ten percent (10%) of the estimated
aggregate dollar amount to be paid by the dealer to producers for grain
purchased from them during the next fiscal year.� Such bond shall not be less
than Twenty-five Thousand Dollars ($25,000.00) nor more than One Hundred
Thousand Dollars ($100,000.00), except as otherwise authorized by this
article.� The commissioner shall determine the sufficiency of any letter of
credit.
���� (2)� The commissioner may,
when he questions a grain dealer's ability to pay producers for grain
purchased, require a grain dealer to post an additional bond in a dollar amount
deemed appropriate by the commissioner.� Failure to post such additional bond
or certificate of deposit or irrevocable letter of credit, constitutes grounds
for suspension or revocation of a license issued under this article.
���� (3)� Any required bond or
bonds shall be executed by the grain dealer as principal and by a corporate
surety licensed to do business in this state as a surety.� The bond shall be in
favor of the commissioner for the benefit of all persons interested, their
legal representatives, attorneys or assigns, conditioned upon the faithful
compliance by the grain dealer with the provisions of this article and the
rules and regulations of the State Department of Agriculture and Commerce
applicable thereto.� The aggregate liability of the surety shall not exceed the
sum of such bond.� The bond may be cancelled at any time by the surety by
giving written notice to the commissioner of its intention to cancel the bond and
all liability thereunder shall terminate sixty (60) days after the mailing of
such notice except that such notice shall not affect any claims arising under
the bond, whether presented or not, before the effective date of the
cancellation notice.
���� (4)� Any grain dealer who is
of the opinion that his net worth and assets are sufficient to guarantee
payment to producers for grain purchased by him may request the commissioner to
be relieved of the obligation of filing a bond in excess of the minimum bond of
Twenty-five Thousand Dollars ($25,000.00).� Such request shall be accompanied
by a financial statement of the applicant made within six (6) months of the
date of such request certified by a certified public accountant.� If such
financial statement discloses net assets and a net worth of an amount equal to
at least three (3) times the amount of the bond required by this article and
the commissioner is otherwise satisfied as to the financial ability and
resources of the applicant, the commissioner may waive that portion of the
required bond in excess of Twenty-five Thousand Dollars ($25,000.00).� However,
in the case of a grain dealer whose net worth is not equal to three (3) times
the amount of bond required, the commissioner may allow such grain dealer to
waive in One Thousand Dollar ($1,000.00) increments a portion of the bond
required in excess of Twenty-five Thousand Dollars ($ 25,000.00).� The
percentage factor to be applied to the bond required in excess of Twenty-five
Thousand Dollars ($25,000.00) shall be determined by dividing actual net worth
by the net worth required to waive all bond in excess of Twenty-five Thousand
Dollars ($25,000.00).� If the result of this computation provides a percentage
factor of eighty percent (80%) or greater, then that same percentage of the
bond in excess of Twenty-five Thousand Dollars ($25,000.00) may be waived.� The
grain dealer shall then provide to the commissioner a surety bond in the amount
of Twenty-five Thousand Dollars ($25,000.00) plus any additional bond required
in excess thereof.
���� (5)� Any grain dealer who
purchases grain from producers only in connection with or as an incident to
some other business and whose total purchases of grain from producers during
any fiscal year do not exceed an aggregate amount of One Hundred Thousand
Dollars ($100,000.00) may satisfy the bonding requirements of this article by
filing with the commissioner a bond, or certificate of deposit or irrevocable
letter of credit from any bank or banking corporation insured by the Federal Deposit
Insurance Corporation, at the rate of One Thousand Dollars ($1,000.00) for each
Ten Thousand Dollars ($10,000.00) or fraction thereof of the dollar amount to
be purchased, with a minimum bond, certificate of deposit or irrevocable letter
of credit of One Thousand Dollars ($1,000.00) and a current financial
statement.
���� (6)� Failure of a grain
dealer to file a bond, or certificate of deposit, or letter of credit, and to
keep such bond, certificate of deposit or line of credit in force, or to
maintain assets adequate to assure payment to producers for grain purchased
from them shall be grounds for the suspension or revocation of a license issued
under this article.
���� (7)� When the commissioner
has determined that a grain dealer has defaulted payment to producers for grain
which he has purchased from them, the commissioner shall determine * * *through appropriate legal procedures, using
the hearing procedures set out in Section 75-44-35, the producers and the
amount of defaulted payment and as trustee of the bond shall immediately after
such determination call for the dealer's surety bond or bonds, or other pledged
financial assets, to be paid to him for distribution to those producers who
should receive the benefits.� Should the defaulted amount owed the producers be
less than the principal amount of the bond or bonds or pledged financial
assets, then the surety bank, or banking corporation shall be obligated to pay
only the amount of the default.
���� SECTION 25.� Section
75-45-307, Mississippi Code of 1972, is amended as follows:
���� 75-45-307.� If the
department is satisfied:
��������� (a)� That the applicant
is of good business reputation,
��������� (b)� That the applicant
has adequate bonding under Section 75-45-305,
��������� (c)� That the applicant
maintains a permanent business location in this state, and
��������� (d)� That the applicant
has sufficient financial resources to guarantee payment to producers for grain
purchased from them, the commissioner shall issue a license to the applicant or
shall renew the applicant's license.� Licenses shall be * * *issued or renewed annually * * *for a period ending ninety (90) days after the last day of
the applicant's fiscal year on July 1.� The license or
renewal thereof issued by the department under this section shall be posted in
the principal office of the licensee in this state.� A certificate shall be
posted in each location listed on a licensee's application where he engages in
the business of buying grain.� In the case of a licensee operating a truck or
tractor trailer unit the licensee is required to have a certificate that the
license is in effect and that a bond or certificate of deposit has been filed
and is carried in each truck or tractor trailer unit used in connection with
the purchase of grain from producers.� Upon request of a licensee and payment
of the fee thereof, the commissioner shall issue to the licensee a certificate
that a license has been issued or renewed and a bond filed as required by this
article.
���� SECTION 26.� Section
75-45-311, Mississippi Code of 1972, is amended as follows:
���� 75-45-311.� If a grain
dealer should fail or refuse to make payment to a producer for grain purchased
when such payment is requested by the producer and the request is made within
one hundred sixty (160) days of the date of sale or the date of delivery of
such grain to the dealer, whichever is later, but in case of deferred pricing,
delayed pricing, priced-later, or similar contractual arrangements, no more
than two hundred seventy (270) days after the date of delivery, the producer
may notify the commissioner in writing, by certified mail when possible, of
such failure or refusal within the period of * * *one hundred sixty (160) days or ten (10) days thereafter
thirty (30) days after such refusal or failure to pay.� The commissioner
upon receiving such notice shall * * *take whatever action is necessary initiate a
hearing procedure as set forth in Section 75-44-35.� The producer shall then
file a claim in accordance with any regulations promulgated by the commissioner.�
The producer furnishing such written notice within the prescribed length of
time is entitled to the benefits of the grain dealer's bond.� However, if a
producer fails to furnish written notice to the commissioner within the
prescribed time, then such producer is not entitled to any benefits under the
grain dealer's bond.� Grain dealer liability under priced-later contracts, open-priced
contracts, deferred price contracts, or similar agreements shall accrue under
the bond in effect at the date of default as determined by the commissioner.� Any
bond required under this chapter shall be in addition to the bond required by
an entity licensed under the "Mississippi Grain Warehouse Law,"
established under Section 75-44-1 et seq.
���� SECTION 27. �This act
shall take effect and be in force from and after July 1, 2026.