Legislative Update

March 13, 2007

One page broadcast fax

TO:   North Dakota Elevator Managers and Allied Members

SB 2247 amended and approved by House Ag.  This is that Pulse Growers’ bill dealing with roving grain buyer’s licensing.  House Ag put an amendment on SB 2247 saying the requirement for a roving grain buyers license does not apply to "any person that purchases, solicits, or merchandises grain, which has been cleaned, processed, and made ready for consumption, from a public warehouseman licensed and bonded under chapter 60-02 or from a facility-based grain buyer (fed house) licensed under this chapter (60-02.1)  If the person engages in any activity other than those described in this section, the person is subject to the law governing those other activities."  These changes expire on July 31, 2009.  If this isn't reenacted or something else done in the 2009 session we revert to present law on August 1, 2009 requiring the license.  Grain Dealers leadership thinks this exception is narrow enough for us to move from a position of opposition to one of skeptical neutral.  NDGDA testimony pointed out the value of the licensing law as they are and potential problems if we start exempting certain buyers.   

SB 2365 is the bill to study grain grading procedures at grain elevators.  It was heard in House Ag on Friday March 9.  Tony Johannesen, Brad Haugeberg and Steve Strege were there.  Some of the same accusations were made and stories told as at the Senate hearing a month earlier.  The only organized group speaking in favor was the U.S. Durum Growers Association.  None of the major farm organizations or other commodity groups spoke in support.  NDGDA remains strongly opposed.  The mechanism for dispute resolution is already in state law.  It is submission of a sample to an independent third party.  Contact House Ag Committee members urging a DO NOT PASS and all House members encouraging a vote against this bill. 

HB 1181 reduces the cap on the credit sale contract indemnity fund from $10 million to $6 million.  This passed the House and was given a 4-3 Do Pass in the Senate Ag Committee.  It is pending for Senate floor action.  HB 1185, Dry Pea and Lentil checkoff has been signed into law by the Governor.  HB 1338 regarding loss of priority of receivables secured by a lien if the receivables are sold has also been signed by the Governor.  HB 1470 regarding notices of termination of grain storage contracts has been signed by the Governor.  SB 2285 regarding certified mail notice of processors liens was given a 11-0 Do Pass by the House Ag Committee.  SB 2228 regarding reports of alleged loss through pesticide application has been given a 7-4 Do Pass recommendation by the House Ag Committee. 

Biofuels promotion:  SB 2180 will provide up to $500,000 interest rate buydown to any single biodiesel or ethanol production facility.  The bill also provides interest rate buydown of up to $250,000 to any single livestock operation which uses as part of its operation a byproduct produced at a biodiesel or ethanol production facility.  Maximum buydown is 5%.