SB 2631

MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Agriculture
By: Senator(s) Whaley
Senate Bill 2631
(As Sent to Governor)
AN ACT TO CREATE NEW SECTION 75-46-1, MISSISSIPPI CODE OF
1972, TO ESTABLISH THE "MISSISSIPPI GRAIN INDEMNITY ACT"; TO CREATE
NEW SECTION 75-46-3, MISSISSIPPI CODE OF 1972, TO DEFINE THE RELEVANT TERMS OF
THIS ACT; TO CREATE NEW SECTION 75-46-5, MISSISSIPPI CODE OF 1972, TO CREATE
THE MISSISSIPPI GRAIN INDEMNITY BOARD; TO OUTLINE THE PURPOSE, COMPOSITION AND
DUTIES OF THE BOARD; TO CREATE THE MISSISSIPPI GRAIN INDEMNITY TRUST FUND
WITHIN THE STATE TREASURY; TO CREATE NEW SECTION 75-46-7, MISSISSIPPI CODE OF
1972, TO PROVIDE THAT THE GRAIN INDEMNITY TRUST FUND SHALL BE ADMINISTERED BY
THE BOARD; TO CREATE NEW SECTION 75-46-9, MISSISSIPPI CODE OF 1972, TO PROVIDE
THAT BEGINNING JANUARY 1, 2027, GRAIN PRODUCERS WILL BE CHARGED AN ASSESSMENT
EQUAL TO .2% OF ALL MARKETED GRAIN THAT IS SOLD TO A FIRST PURCHASER LICENSEE;
TO CREATE NEW SECTION 75-46-11, MISSISSIPPI CODE OF 1972, TO PROVIDE HOW GRAIN
ASSESSMENTS SHALL BE COLLECTED; TO CREATE NEW SECTION 75-46-13, MISSISSIPPI
CODE OF 1972, TO PROVIDE THAT THE GRAIN INDEMNITY TRUST FUND SHALL NOT FALL
BELOW $20,000,000.00 AT THE END OF THE FISCAL YEAR; TO CREATE NEW SECTION 75-46-15,
MISSISSIPPI CODE OF 1972, TO REQUIRE THAT FIRST PURCHASER LICENSEES MUST
MAINTAIN A LEDGER OF ALL ASSESSMENTS COLLECTED; TO CREATE NEW SECTION 75-46-17,
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PARTICIPATION IN THE GRAIN INDEMNITY
TRUST FUND IS VOLUNTARY, AND HOW TO NOTIFY THE DEPARTMENT IF A PRODUCER DOES
NOT WANT TO PARTICIPATE IN ANY GIVEN YEAR; TO CREATE NEW SECTION 75-46-19,
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER SHALL BE RESPONSIBLE
FOR DETERMINING WHEN A FIRST PURCHASER LICENSEE HAS FAILED OR WHEN A FAILURE
HAS OCCURRED; TO PROVIDE PROCEDURE REGARDING HOW NOTICE SHALL BE GIVEN; TO
CREATE NEW SECTION 75-46-21, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD
TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR THE OPERATION OF THE BOARD
AND ADJUDICATION OF CLAIMS; TO CREATE NEW SECTION 75-46-23, MISSISSIPPI CODE OF
1972, TO REQUIRE THAT CLAIMS SUBMITTED TO THE BOARD SHALL BE REVIEW BY A
DESIGNEE OR DESIGNEES; TO CREATE NEW SECTION 75-46-25, MISSISSIPPI CODE OF
1972, TO PROVIDE HOW CLAIMS FOR STORAGE LOSS SHALL BE PAID; TO CREATE NEW
SECTION 75-46-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT WHEN THE TOTAL
AMOUNT OF ELIGIBLE CLAIMS EXCEEDS THE FUNDS AVAILABLE, THE BOARD SHALL MAKE
PAYMENTS ON A PRO RATA BASIS; TO CREATE NEW SECTION 75-46-29, MISSISSIPPI CODE
OF 1972, TO PROVIDE THAT THE COMMISSIONER SHALL HAVE THE AUTHORITY TO REVOKE
THE LICENSE OF FIRST PURCHASER LICENSEES FOR FAILURE TO TIMELY COLLECT AND
SUBMIT ASSESSMENTS; TO CREATE NEW SECTION 75-46-31, MISSISSIPPI CODE OF 1972,
TO REQUIRE THE COMMISSIONER TO ESTABLISH A TOLL-FREE HOTLINE FOR RECEIVING
INFORMATION CONCERNING THE FAILURE OF A FIRST PURCHASER LICENSEE TO MAKE TIMELY
PAYMENTS FOR THE PURCHASE OF GRAIN AND OTHER SUSPICIONS OF FRAUDULENT ACTIVITY
BY A FIRST PURCHASER LICENSEE; TO CREATE NEW SECTION 75-46-33, MISSISSIPPI CODE
OF 1972, TO PROVIDE THAT BOARD RECORDS ARE SUBJECT TO AN AUDIT PERFORMED BY THE
STATE AUDITOR AT ANY TIME; TO CREATE NEW SECTION 75-46-35, MISSISSIPPI CODE OF
1972, TO PROVIDE THAT CLAIMANTS WHO ARE FULLY COMPENSATED UNDER THIS CHAPTER,
SHALL HAVE SUBROGATED ALL CLAIMANTS RIGHTS ON A BOND OR OTHER PLEDGED FINANCIAL
ASSETS; TO CREATE NEW SECTION 75-46-37, MISSISSIPPI CODE OF 1972, TO AUTHORIZE
THE BOARD TO HAVE THE AUTHORITY TO ADOPT ALL RULES AND REGULATIONS NEEDED TO
CARRY OUT THE POWERS AND DUTIES OF THE BOARD; TO AMEND SECTIONS 75-44-29, 75-44-31,
75-44-35, 75-45-304, 75-45-307 AND 75-45-311, MISSISSIPPI CODE OF 1972, TO
CONFORM; 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 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
assessments into the Mississippi Grain Indemnity Trust Fund, including payments
made pursuant to 75-46-17(5) or is a new producer; and
������������� (iv)� Has not opted
out of paying the assessments pursuant to 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)� "Deferred
purchase" means a purchase by a first purchaser licensee in which title to
grain passes to the first purchaser licensee and by voluntary agreement of the
producer full payment to producer is not made for said grain within one (1)
calendar year of the date that title to the grain passes to the first purchaser
licensee.
��������� (g)�
"Department" means the Mississippi Department of Agriculture and
Commerce.
��������� (h)� "Failed"
or "failure," subject to Section 75-46-19, 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 producers or claimants; or
������������� (v)� The filing of
an involuntary or voluntary petition for bankruptcy with regard to a first
purchaser licensee.
��������� (i)� "First
purchaser licensee" means a person who is the first 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.
��������� (j)� "Fund"
means the Mississippi Grain Indemnity Trust Fund.
��������� (k)� "Grain"
means whole kernel corn for all purposes, soybeans and wheat grown in the State
of Mississippi.� Grain does not include sweet corn, popcorn or any other corn
for human consumption.
��������� (l)� "Mississippi
Grain Indemnity Trust Fund" or "Grain Indemnity Fund" means the
fund established as provided in this chapter.
��������� (m)� "Mississippi
Grain Indemnity Trust Fund Board" means the board established under
Section 75-46-5.
��������� (n)� "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.
��������� (o)� "Person"
means a natural person, trust, partnership, corporation or any other business
entity.
��������� (p)�
"Producer" or "producers" means the owner(s), tenant(s) or
operator(s) of land in this state who possess an interest in and receives all
or any part of the proceeds from the sale of the grain produced thereon.
��������� (q)� "Storage
loss" means a loss to a producer or claimant when a 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)� There is hereby created the Mississippi Grain Indemnity Board,
which is established for the purposes of administering and overseeing the
Grain Indemnity Trust 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/or 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 seven (7) voting members:
��������� (a)� The commissioner,
who shall be the chairperson of the board;
��������� (b)� Two (2) members
appointed by the Governor;
��������� (c)� Two (2) members
appointed by the Lieutenant Governor; and
��������� (d)� Two (2) members
appointed 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/or experience in the production, marketing and storage of grain.
���� (3)� Members of the initial
board shall be appointed as follows:
��������� (a)� The Governor shall
appoint members for terms of one (1) year and three (3) years;
��������� (b)� The Lieutenant
Governor shall appoint members for two (2) and four (4) years; and
��������� (c)� The Speaker of the
House of Representatives shall appoint members for one (1) year 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 to the board for costs for the administration of this
chapter.� The Grain Indemnity Trust Fund shall consist of:
��������� (a)� Money collected
under this chapter;
��������� (b)� Interest earned on
any money in the Grain Indemnity Trust Fund;
��������� (c)� Any funds
appropriated by the Legislature or any other public or private source; and
��������� (d)� Any bond proceeds for grain, proceeds from other pledged financial assets
for grain set forth in Section 75-44-29 and Section 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 Grain
Indemnity Trust 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 Grain Indemnity Trust Fund and shall be available for
the same purposes as other monies deposited in the Grain Indemnity Trust Fund.�
The monies in the Grain Indemnity Trust Fund shall not be available for any
purpose other than those specified in subsection (1) of this section.
���� (6)� The Grain Indemnity
Trust 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 Trust Fund
and funds not expended at the end of the fiscal year shall remain in the Grain
Indemnity Trust 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 Trust
Fund.� Administrative costs such as those enumerated in Section 75-46-7
associated with administering the Grain Indemnity Trust 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 with the Legislature by the board no later
than 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
Grain Indemnity Trust 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 operations
of the Grain Indemnity Trust Fund.� The board shall have the authority to
contract with individuals or entities regarding:
��������� (a)� Claims
administration;
��������� (b)� Legal, accounting,
audit and financial matters; and
��������� (c)� Any other matters
the board deems relevant and appropriate.
���� (2)� Subject to the approval
of the board, the commissioner shall be responsible for the day-to-day
operations of the Grain Indemnity Trust Fund, including the disbursement of
payments approved by the board under subsection (1) of this section.� The
department is authorized to make such disbursements 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 Grain Indemnity
Trust Fund is Twenty-five Million Dollars ($25,000,000.00).
���� (2)� If the amount in the
Grain Indemnity Trust 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 Grain Indemnity Trust 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
Grain Indemnity Trust 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 Trust 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 1 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 of such year if said
executed form or other official acknowledgment is sent after March 1 of such year.
���� (3)� Subject to subsections
(5) and (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 Trust 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, 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 to 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 (5) 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
(5) 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 Trust 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 Sections 75-44-35 and 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 Trust 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 designee(s) shall make a preliminary determination regarding
the eligibility for payment from the Grain Indemnity Trust 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 final review and
determination of eligibility for payment from the Grain Indemnity Trust Fund.
���� (2)� The board or its
designee(s) may request additional information from a claimant determined to be
necessary for adjudication of the claim.� The claimant may be provided an
opportunity to provide oral testimony to the board and/or its designee(s).
���� (3)� If a claim is denied in
whole or 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 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 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 Trust 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 Grain Indemnity Trust Fund, the board shall make payments on a
pro rata basis.� Assessments subsequently collected and submitted to the Grain
Indemnity Trust 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 is also 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 Trust
Fund by commissioner for the benefit of the Grain Indemnity Trust 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 and 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
provisions 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 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 or her 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 or her prosecution of the appeal without
delay and payment of all costs assessed against him or her.� 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 or she 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 or her net worth and assets are sufficient to
guarantee payment to producers for grain purchased by him or her 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 or she has purchased from them, the commissioner shall
determine * * *, 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 or her 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 applicants 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.