HB 946 -- Grain Sale and Storage

Sponsor:  Guernsey

This bill changes the laws regarding grain dealers and grain
warehouses.  In its main provisions, the bill:

(1)  Requires every licensed grain dealer or applicant for a
grain dealer license to maintain a minimum net worth of 5% of the
total amount of grain purchased in the previous fiscal year.
Currently, only certain dealers or applicants are required to
maintain specified minimum net worths;

(2)  Requires any licensed grain dealer or applicant to have and
maintain current assets at least equal to 100% of current
liabilities and specifies certain requirements regarding the
determination of the amount of assets and liabilities;

(3)  Increases the minimum surety bond requirement for a licensed
grain dealer from $20,000 to $50,000 and the maximum from
$300,000 to $600,000;

(4)  Changes the formula for determining the amount of surety
bond required by specifying that the amount must be equal to 2%
of the dealer's previous year's grain purchases, instead of
between 1% and 5% of the purchases;

(5)  Increases the multiplication factor for determining the net
worth an owner of a licensed grain warehouse must have and
maintain from 15 cents to 25 cents per bushel; and

(6)  Repeals the provision that allows a grain dealer who has
purchased less than $400,000 of grain the previous year to
satisfy the bond requirement by filing bonds at the rate of
$1,000 per $20,000 worth of grain purchased.

Missouri House of Representatives
96th General Assembly, 1st Regular Session
Last Updated August 9, 2011 at 1:27 pm