1.1                          A bill for an act 
  1.2             relating to agriculture; changing the amount of 
  1.3             certain grain buyers' bonds; amending Minnesota 
  1.4             Statutes 2003 Supplement, section 223.17, subdivision 
  1.5             4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   223.17, subdivision 4, is amended to read: 
  1.9      Subd. 4.  [BOND.] Before a grain buyer's license is issued, 
  1.10  the applicant for the license must file with the commissioner a 
  1.11  bond in a penal sum prescribed by the commissioner but not less 
  1.12  than the following amounts:  
  1.13     (a) $10,000 for grain buyers whose gross annual purchases 
  1.14  are $100,000 or less; 
  1.15     (b) $20,000 for grain buyers whose gross annual purchases 
  1.16  are more than $100,000 but not more than $750,000; 
  1.17     (c) $30,000 for grain buyers whose gross annual purchases 
  1.18  are more than $750,000 but not more than $1,500,000; 
  1.19     (d) $40,000 for grain buyers whose gross annual purchases 
  1.20  are more than $1,500,000 but not more than $3,000,000; ~~and~~ 
  1.21     (e) $50,000 for grain buyers whose gross annual purchases 
  1.22  ~~exceed~~ are more than $3,000,000 but not more than $6,000,000; 
  1.23     (f) $70,000 for grain buyers whose gross annual purchases 
  1.24  are more than $6,000,000 but not more than $12,000,000; 
  1.25     (g) $125,000 for grain buyers whose gross annual purchases 
  2.1   are more than $12,000,000 but not more than $24,000,000; and 
  2.2      (h) $150,000 for grain buyers whose gross annual purchases 
  2.3   exceed $24,000,000.  
  2.4      A grain buyer who has filed a bond with the commissioner 
  2.5   prior to July 1, ~~1983~~ 2004, is not required to increase the 
  2.6   amount of the bond to comply with this section until July 1, 
  2.7   ~~1984~~ 2005.  The commissioner may postpone an increase in the 
  2.8   amount of the bond until July 1, ~~1985~~ 2006, if a licensee 
  2.9   demonstrates that the increase will impose undue financial 
  2.10  hardship on the licensee, and that producers will not be harmed 
  2.11  as a result of the postponement.  The commissioner may impose 
  2.12  other restrictions on a licensee whose bond increase has been 
  2.13  postponed.  The amount of the bond shall be based on the most 
  2.14  recent financial statement of the grain buyer filed under 
  2.15  subdivision 6.  
  2.16     A first-time applicant for a grain buyer's license ~~after~~ 
  2.17  ~~July 1, 1983~~ shall file a $20,000 bond with the commissioner. 
  2.18  This bond shall remain in effect for the first year of the 
  2.19  license.  Thereafter, the licensee shall comply with the 
  2.20  applicable bonding requirements contained in clauses (a) 
  2.21  to ~~(e)~~ (h). 
  2.22     In lieu of the bond required by this subdivision the 
  2.23  applicant may deposit with the commissioner of finance cash, a 
  2.24  certified check, a cashier's check, a postal, bank, or express 
  2.25  money order, assignable bonds or notes of the United States, or 
  2.26  an assignment of a bank savings account or investment 
  2.27  certificate or an irrevocable bank letter of credit as defined 
  2.28  in section 336.5-102, in the same amount as would be required 
  2.29  for a bond. 
  2.30     Sec. 2.  [EFFECTIVE DATE.] 
  2.31     Section 1 is effective July 1, 2004.