HB211 - COMMERCIAL FEED; GRAIN DEALERS - Williams, Marilyn A.
HB211 CHANGES COMMERCIAL FEED LAW. EFFECTIVE DATE FOR CERTAIN SECTIONS
Sponsor: Williams, Marilyn A. (159) Effective Date:00/00/00
CoSponsor:Legan, Kenneth (145) LR Number:0652-01
Last Action: 04/02/97 - Approved by Governor (G)
04/02/97 - Delivered to Secretary of State
HB211
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
HOUSE HOME PAGE BILL SEARCH

Available Bill Summaries for HB211
| Truly Agreed | Perfected | Committee | Introduced |


Available Bill Text for HB211
| Truly Agreed | Perfected | Committee | Introduced |

Available Fiscal Notes for HB211
| Introduced |

BILL SUMMARIES

TRULY AGREED

HB 211 -- COMMERCIAL FEED; GRAIN DEALERS

This bill revises the Commercial Feed Law, effective January 1,
1998.

(1)  Any person who manufactures, distributes, or whose name
appears on the label of commercial feed as guarantor is to
obtain a license for each facility authorizing such person to
manufacture or distribute commercial feed in Missouri.  A fee of
$25 is to accompany an application for licensure.

(2)  Any person acting as an independent consultant is required
to obtain a license from the Department of Agriculture.  An
independent consultant is any person who provides animal
nutritional formulation to a feed purchaser for a fee.
Application for such licensure is to be accompanied by a fee of
$25.

(3)  A product is considered to be misbranded if it is not
appropriate for its intended use.

(4)  The Department of Agriculture is allowed to take action if
any product is found to be adulterated.  A product is considered
to be adulterated if it contains any filthy, putrid, or
decomposed substance or if it is otherwise found to be unfit for
feed.

(5)  Action may be taken against companies by suspending or
revoking licenses when there is just cause.

(6)  Customer-formula feed sampling is expanded and chemical
analysis results are to be provided to the customer.

(7)  The annual report containing information about sales of
commercial feeds, data on such feed production, and use and
results of the analyses of official samples of commercial feeds
sold within the state will be provided to all distributors of
feed, feed dealers, and others free of charge.

(8)  After inquiry and opportunity for a hearing, the Director
of the Department of Agriculture may assess civil penalties not
to exceed $1,000 for each violation of serious and repeat
offenders of the feed law and may order restitution to be made
to any person.  Any person aggrieved by an act, order, or ruling
made pursuant to the provisions of this bill may appeal pursuant
to the provisions in Chapter 536, RSMo.  Any person subject to a
final administrative order may file a de novo appeal to the
circuit court.  The circuit court may assess a civil penalty of
up to $5,000 per violation.

(9)  Manufacturers of pet food which is distributed in packages
of 10 pounds or less are to pay a $25 per product registration
fee, annually, in lieu of an inspection fee.

(10)  Manufacturers of specialty pet food distributed in
packages of one pound or less are to pay a $25 per product
registration fee not to exceed $1,000 per manufacturer,
annually, in lieu of an inspection fee.

The bill also includes numerous changes to the Grain Dealers and
Grain Warehouse laws.  This portion of the bill has an emergency
clause.

(1)  Current law, which went into effect February 1, 1996,
requires all grain warehouses and grain dealers posting letters
of credit or certificates of deposit as security to submit
financial statements which have been reviewed by a certified
public accountant.  This bill requires all licensees to submit
at least review level financial statements.  The review is to be
performed by a certified public accountant.

(2)  The financial requirements for licensees engaging in credit
sales contracts are increased to the greater of $50,000 or 2% of
annual grain purchases.  Currently, the greater of 15 cents per
bushel or 1% of annual purchases is required.  Only Class I
grain dealers are authorized to offer credit sales contracts.

(3)  Record-keeping requirements for all classes of grain
dealers are standardized.  All classes of grain dealers will be
audited by the Department of Agriculture.  Currently, only Class
1 dealers are required to keep certain records and be audited by
the Department of Agriculture.

(4)  Definitions in both the Grain Dealers and Grain Warehouse
laws are clarified to ensure consistency.  Grain dealer licenses
are required for all businesses purchasing grain from producers
on a regular basis.  A license will no longer be required, if
grain is purchased from licensed grain dealers exclusively.

(5)  A new section is added to the Grain Warehouse Law to create
a statutory lien on grain and grain-related assets of a failed
grain warehouseman for the benefit of grain storage depositors.

(6)  Grain dealers who purchase over $400,000 of grain annually
must post at least $20,000 grain dealers security for each grain
dealer license they hold, with a $300,000 maximum.  The minimum
grain warehouse bond is $20,000 and the minimum net worth for a
grain warehouse license is $10,000.

(7)  The requirement for grain transport vehicles to be
registered is repealed and inspection and weight licenses are no
longer required for grain warehouses.

(8)  Class I grain dealers who are also licensed as a grain
warehouse must pay for grain upon demand or within 180 days of
delivery.

(9)  Class II grain dealers who are also licensed as a grain
warehouse must pay for grain upon demand or within 180 days of
delivery.

(10)  Class III, IV, and VI grain dealers must pay for grain
upon demand or within 30 days of delivery.

(11)  Class V grain dealers are dealers that maintain a grain
dealer license to market grain raised in their farming operation
and are not authorized to purchase grain.


PERFECTED

HB 211 -- COMMERCIAL FEED; GRAIN DEALERS (Williams, 159)

This bill revises the Commercial Feed Law, effective January 1,
1998.

(1) Any person who manufactures, distributes, or whose name
appears on the label of commercial feed as guarantor, is to
obtain a license, for each facility authorizing such person to
manufacture or distribute commercial feed in Missouri.  A fee of
$30 is to accompany an application for licensure.

(2) Any person acting as an independent consultant is required
to obtain a license from the Department of Agriculture.  An
independent consultant is any person who provides animal
nutritional formulation to a feed purchaser for a fee.
Application for such licensure is to be accompanied by a fee of
$30.

(3) A product is considered to be misbranded, if it is not
appropriate for its intended use.

(4) The Department of Agriculture is allowed to take action if
any product is found to be adulterated. A product is considered
to be adulterated, if it contains any filthy, putrid, or
decomposed substance or if it is otherwise found to be unfit for
feed.

(5) Stronger action may be taken against companies by suspending
or revoking licenses when there is just cause.

(6) Customer-formula feed sampling is expanded and chemical
analysis results are to be provided to the customer.

(7) The annual report containing information about sales of
commercial feeds, data on such feed production, and use and
results of the analyses of official samples of commercial feeds
sold within the state will be provided to all distributors of
feed, feed dealers, and others free of charge.

(8) After inquiry and opportunity for a hearing, the Director of
the Department of Agriculture may assess civil penalties not to
exceed $1,000 for each violation of serious and repeat offenders
of the feed law and may order restitution to be made to any
person. Any person aggrieved by an act, order, or ruling made
pursuant to the provisions of this bill may appeal pursuant to
the provisions in Chapter 536, RSMo. Any person subject to a
final administrative order may file a de novo appeal to the
circuit court. The circuit court may assess a civil penalty of
up to $5,000 per violation.

(9) Manufacturers of pet food which is distributed in packages
of 10 pounds or less are to pay a $50 per product registration
fee, annually, in lieu of an inspection fee.

(10) Manufacturers of specialty pet food distributed in packages
of one pound or less are to pay a $25 per product registration
fee not to exceed $1,000 per manufacturer, annually, in lieu of
an inspection fee.

The bill also includes numerous changes to the Grain Dealers and
Grain Warehouse laws.  This portion of the bill has an emergency
clause.

(1) Current law, which went into effect February 1, 1996,
requires all grain warehouses and grain dealers posting letters
of credit or certificates of deposit as security to submit
financial statements which have been reviewed by a certified
public accountant. This bill requires all licensees to submit at
least review level financial statements. The review is to be
performed by a certified public accountant.

(2) The financial requirements for licensees engaging in credit
sales contracts are increased to the greater of $50,000 or 2% of
annual grain purchases. Currently, the greater of 15 cents per
bushel or 1% of annual purchases is required.

(3) Record keeping requirements for all classes of grain dealers
are standardized and all classes of grain dealers will be
audited by the Department of Agriculture. Currently, only Class
1 dealers are required to keep certain records and be audited by
the Department of Agriculture.

(4) Filing fees, currently $15, are raised to $25 and license
fees, currently $25, are raised to $40.

(5) Clarifications are made to definitions in both the Grain
Dealers and Grain Warehouse laws to ensure consistency. Grain
dealer licenses are required for all businesses purchasing grain
from producers on a regular basis. A license will no longer be
required, if grain is purchased from licensed grain dealers
exclusively.

(6) A new section is added to the Grain Warehouse Law to create
a statutory lien on grain and grain-related assets of a failed
grain warehouseman for the benefit of grain storage depositors.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$76,609 in FY 1998, $36,514 in FY 1999, & $39,019 in FY 2000.


COMMITTEE

HB 211, HCA 1 -- COMMERCIAL FEED; GRAIN DEALERS

CO-SPONSORS:  Williams (159), Legan

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Agribusiness by a vote of 16 to 0.

This bill revises the Commercial Feed Law, effective January 1,
1998.

(1) Any person who manufactures, distributes, or whose name
appears on the label of commercial feed as guarantor, is to
obtain a license, for each facility authorizing such person to
manufacture or distribute commercial feed in Missouri.  A fee of
$30 is to accompany an application for licensure.

(2) Any person acting as an independent consultant is required
to obtain a license from the Department of Agriculture.  An
independent consultant is any person who provides animal
nutritional formulation to a feed purchaser for a fee.
Application for such licensure is to be accompanied by a fee of
$30.

(3) A product is considered to be misbranded, if it is not
appropriate for its intended use.

(4) The Department of Agriculture is allowed to take action if
any product is found to be adulterated. A product is considered
to be adulterated, if it contains any filthy, putrid, or
decomposed substance or if it is otherwise found to be unfit for
feed.

(5) Stronger action may be taken against companies by suspending
or revoking licenses when there is just cause.

(6) Customer-formula feed sampling is expanded and chemical
analysis results are to be provided to the customer.

(7) The annual report containing information about sales of
commercial feeds, data on such feed production, and use and
results of the analyses of official samples of commercial feeds
sold within the state will be provided to all distributors of
feed, feed dealers, and others free of charge.

(8) After inquiry and opportunity for a hearing, the Director of
the Department of Agriculture may assess civil penalties not to
exceed $1,000 for each violation of serious and repeat offenders
of the feed law and may order restitution to be made to any
person. Any person aggrieved by an act, order, or ruling made
pursuant to the provisions of this bill may appeal pursuant to
the provisions in Chapter 536, RSMo. Any person subject to a
final administrative order may file a de novo appeal to the
circuit court. The circuit court may assess a civil penalty of
up to $5,000 per violation.

(9) Manufacturers of pet food which is distributed in packages
of 10 pounds or less are to pay a $50 per product registration
fee, annually, in lieu of an inspection fee.

(10) Manufacturers of specialty pet food distributed in packages
of one pound or less are to pay a $25 per product registration
fee not to exceed $1,000 per manufacturer, annually, in lieu of
an inspection fee.

The bill also includes numerous changes to the Grain Dealers and
Grain Warehouse laws.  This portion of the bill has an emergency
clause.

(1) Current law, which went into effect February 1, 1996,
requires all grain warehouses and grain dealers posting letters
of credit or certificates of deposit as security to submit
financial statements which have been reviewed by a certified
public accountant. This bill requires all licensees to submit at
least review level financial statements. The review is to be
performed by a certified public accountant.

(2) The financial requirements for licensees engaging in credit
sales contracts are increased to the greater of $50,000 or 2% of
annual grain purchases. Currently, the greater of 15 cents per
bushel or 1% of annual purchases is required.

(3) Record keeping requirements for all classes of grain dealers
are standardized and all classes of grain dealers will be
audited by the Department of Agriculture. Currently, only Class
1 dealers are required to keep certain records and be audited by
the Department of Agriculture.

(4) Filing fees, currently $15, are raised to $25 and license
fees, currently $25, are raised to $40.

(5) Clarifications are made to definitions in both the Grain
Dealers and Grain Warehouse laws to ensure consistency. Grain
dealer licenses are required for all businesses purchasing grain
from producers on a regular basis. A license will no longer be
required, if grain is purchased from licensed grain dealers
exclusively.

(6) A new section is added to the Grain Warehouse Law to create
a statutory lien on grain and grain-related assets of a failed
grain warehouseman for the benefit of grain storage depositors.

HCA 1 -- Raises the registration fee for pet food packaged in 10
pound packages or less from $25 to $50 and makes certain
technical corrections to the bill.

FISCAL NOTE:  Estimated Net Cost to General Revenue is $77,929
for FY 1998, $65,809 for FY 1999, and $68,314 for FY 2000.

PROPONENTS:  Supporters of the Commercial Feed portion of the
bill say the bill is the result of recommendations made to the
Department of Agriculture by a task force formed to review the
current Commercial Feed Law. Most new provisions bring the
Missouri Commercial Feed Law into compliance with the model
commercial feed law. Facility licensure fees replace inspection
fees to fund the inspection program.

Supporters of the Grain Warehousers and Grain Dealers portion of
the bill say the bill relieves financial pressure on small
granaries and dealers by relaxing auditing requirements and
reducing paper work while providing adequate safeguards for
producers.

Testifying for the bill were Representatives Williams (159) and
Legan; Department of Agriculture; MFA Incorporated; Farmland
Industries Inc.; Missouri Agricultural Industries Council;
Missouri Farm Bureau; and American Feed Industry Association.

OPPONENTS:  Those who oppose the bill say that energy content
and caloric utilization information should be included in
labeling information to help producers make more informed feed
choices

Testifying against the bill was Darrell Sharp.

Roland Tackett, Research Analyst


INTRODUCED

HB 211 -- Commercial Feed; Grain Dealers

Co-Sponsors:  Williams (159), Legan (145)

This bill revises the Commercial Feed Law, effective January 1,
1998.

(1) Any person who manufactures, distributes or whose name
appears on the label of commercial feed as guarantor, is to
obtain a license, for each facility authorizing such person to
manufacture or distribute commercial feed in Missouri.  A fee
$30 is to accompany an application for licensure.

(2) Any person acting as an independent consultant is required
to obtain a license from the Department of Agriculture.  An
independent consultant is any person who provides animal
nutritional formulation to a feed purchaser for a fee.
Application for such licensure is to be accompanied by a fee of
$30.

(3) A product is considered to be misbranded, if it is not
appropriate for its intended use.

(4) The Department of Agriculture's authority is expanded to
allow action to be taken if any product is found to be
adulterated. A product is considered to be adulterated, if it
contains any filthy, putrid, or decomposed substance or if it is
otherwise found to be unfit for feed.

(5) Stronger action may be taken against companies by suspending
or revoking licenses when there is just cause.

(6) Customer-formula feed sampling is expanded and chemical
analysis results are to be provided to the customer.

(7) The annual report containing information about sales of
commercial feeds, data on such feed production, and use and
results of the analyses of official samples of commercial feeds
sold within the state will be provided to all distributors of
feed, feed dealers, and others free of charge.

(8) After inquiry and opportunity for a hearing, the Director of
the Department of Agriculture may assess civil penalties not to
exceed $1,000 for each violation of serious and repeat offenders
of the feed law and may order restitution to be made to any
person. Any person aggrieved by an act, order, or ruling made
pursuant to the provisions of this bill may appeal pursuant to
the provisions in Chapter 536, RSMo. Any person subject to a
final administrative order may file a de novo appeal to the
circuit court. The circuit court may assess a civil penalty of
up to $5,000 per violation.

(9) Pet food and specialty pet food inspection fees are
increased to not to exceed $1,000 per manufacturer.

The bill also includes numerous changes to the Grain Dealers and
Grain Warehouse laws.  This portion of the bill has an emergency
clause.

(1) Current law, which went into effect February 1, 1996,
requires all grain warehouses and grain dealers posting letters
of credit or certificates of deposit as security to submit
financial statements which have been reviewed by a certified
public accountant. This bill requires all licensees to submit at
least review level financial statements. The review is to be
performed by a certified public accountant.

(2) The financial requirements for licensees engaging in credit
sales contracts are increased to the greater of $50,000 or 2% of
annual grain purchases. Currently, the greater of 15 cents per
bushel or 1% of annual purchases is required.

(3) Record keeping requirements for all classes of grain dealers
are standardized and all classes of grain dealers will be
audited by the Department of Agriculture. Currently, only Class
1 dealers are required to keep certain records and be audited by
the Department of Agriculture.

(4) Filing fees currently $15 are raised to $25 and license fees
currently $25 are raised to $40.

(5) Clarifications are made to definitions in both the Grain
Dealers and Grain Warehouse laws to ensure consistency. Grain
dealer licenses are required for all businesses purchasing grain
from producers on a regular basis. A license will no longer be
required, if grain is purchased from licensed grain dealers
exclusively.

(6) A new section is added to the Grain Warehouse Law to create
a statutory lien on grain and grain-related assets of a failed
grain warehouseman for the benefit of grain storage depositors.


redbar

Missouri House of Representatives' Home Page
Last Updated August 11, 1997 at 4:09 pm