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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0214
Introduced 2/2/2005, by Sen. John M. Sullivan SYNOPSIS AS INTRODUCED: |
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Amends the Grain Code. Requires the Department of Agriculture to prescribe or authorize price later contract forms in electronic document format. Effective immediately.
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A BILL FOR
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SB0214 |
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LRB094 06129 JAM 36194 b |
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| AN ACT concerning warehouses.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Grain Code is amended by changing Section |
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| 10-15 as follows:
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| (240 ILCS 40/10-15)
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| Sec. 10-15. Price later contracts.
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| (a) Price later contracts shall be written on forms
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| prescribed or authorized by the Department. The Department |
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| shall also prescribe or authorize contracts to be electronic |
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| documents. Price later contract forms
shall be
printed by a |
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| person authorized to print those contracts by the
Department |
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| after that person has agreed to comply with each of the |
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| following:
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| (1) That all price later contracts shall be printed as
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| prescribed by the Department and shall be printed only for |
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| a
licensed grain dealer.
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| (2) That all price later contracts shall be numbered
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| consecutively and a complete record of these contracts |
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| shall
be retained showing for whom printed and the |
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| consecutive
numbers printed on the contracts.
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| (3) That a duplicate copy of all invoices rendered for
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| printing price later contracts that will show the |
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| consecutive
numbers printed on the contracts, and the |
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| number of contracts printed,
shall be promptly forwarded to |
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| the Department.
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| (4) that the person shall register with the Department |
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| and pay an annual
registration fee of $100 to print price |
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| later contracts.
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| (b) A grain dealer purchasing grain by price later contract
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| shall at all times own grain, rights in grain, proceeds from |
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sale of grain, and other assets acceptable to the |
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SB0214 |
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LRB094 06129 JAM 36194 b |
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| Department as set
forth in this Code totaling 90% of the unpaid |
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| balance of
the grain dealer's obligations for grain purchased |
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| by price later
contract. That amount shall at all times remain |
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| unencumbered and
shall be represented by the aggregate of the |
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| following:
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| (1) Grain owned by the grain dealer
valued by means of |
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| the hedging procedures method that
includes marking open |
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| contracts to market.
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| (2) Cash on hand.
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| (3) Cash held on account in federally or State licensed
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| financial institutions.
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| (4) Investments held in time accounts with federally or
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| State licensed financial institutions.
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| (5) Direct obligations of the U.S. government.
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| (6) Funds on deposit in grain margin accounts.
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| (7) Balances due or to become due to the licensee on
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| price later contracts.
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| (8) Marketable securities, including mutual funds.
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| (9) Irrevocable letters of credit in favor of the
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| Department and acceptable to the Department.
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| (10) Price later contract service charges due or to
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| become due to the licensee.
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| (11) Other evidence of proceeds from or of grain that |
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| is
acceptable to the Department.
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| (c) For the purpose of computing the dollar value of grain
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| and the balance due on price later contract obligations, the |
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| value
of grain shall be figured at the current market price.
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| (d) Title to grain sold by price later contract shall
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| transfer to a grain dealer at the time of delivery of the
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| grain.
Therefore, no storage charges shall be made with respect |
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| to grain
purchased by price later contract. A service charge |
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| for
handling the contract, however, may be made.
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| (e) Subject to subsection (f) of this Section,
if a price |
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| later contract is not signed by all parties
within 30 days of |
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| the last date of delivery of grain
intended to be sold by price |
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| later contract, then
the grain intended to be sold by price |
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SB0214 |
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LRB094 06129 JAM 36194 b |
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| later contract shall
be priced on the next business day after |
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| 30 days from
the last date of delivery of grain intended to be |
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| sold
by price later contract at the market price of the grain
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| at the close of the next business day after the 29th day.
When |
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| the grain is priced under this subsection, the grain dealer |
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| shall send
notice to the seller of the grain within 10 days. |
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| The notice shall contain the
number of bushels sold, the price |
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| per bushel, all applicable discounts, the net
proceeds, and a |
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| notice that states that the Grain Insurance Fund shall provide
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| protection for a period of only 160 days from the date of |
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| pricing of the grain.
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| In the event of a failure, if a price later contract is not |
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| signed by all
the parties to the transaction, the Department |
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| may consider the grain to be
sold by price later contract if a |
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| preponderance of the evidence indicates the
grain was to be |
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| sold by price later contract.
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| (f) If grain is in storage with a
warehouseman and is |
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| intended to be sold by price later contract, that grain
shall |
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| be considered as remaining in storage and not be deemed sold by |
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| price
later contract until the date the price later contract is |
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| signed by all
parties.
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| (g) Scale tickets or other approved documents with
respect |
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| to grain purchased by a grain dealer by price later
contract |
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| shall contain the following: "Sold Grain; Price Later".
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| (h) Price later contracts shall be issued consecutively and |
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| recorded by
the grain
dealer as established by rule.
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| (i) A licensee shall not issue a collateral warehouse
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| receipt on grain purchased by a price later contract to the |
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| extent
the purchase price has not been paid by the licensee.
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| (j) Failure to comply with the requirements of this Section
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| may result in suspension
of the privilege to purchase grain by |
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| price later contract for up
to one year.
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| (k) When a producer with a price later contract selects a |
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| price for all or
any part of the grain represented by that |
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| contract, then within 5 business days
after that price |
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| selection, the licensee shall mail to that producer a
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