SF 2428

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; defining certain terms; 
  1.3             providing for the validity of certain electronic 
  1.4             documents and signatures; amending Minnesota Statutes 
  1.5             2002, sections 223.16, by adding subdivisions; 
  1.6             223.177, subdivision 3; 232.21, by adding 
  1.7             subdivisions; 232.23, subdivision 4. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 223.16, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 3a.  [ELECTRONIC DOCUMENT.] "Electronic document" 
  1.12  means a document that is generated, sent, received, or stored by 
  1.13  electronic, optical, or similar means, including electronic data 
  1.14  interchange, electronic mail, telegram, telex, or telecopy.  
  1.15  "Electronic document" includes, but is not limited to, grain 
  1.16  purchase contracts and voluntary extension of credit contracts. 
  1.17     Sec. 2.  Minnesota Statutes 2002, section 223.16, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 3b.  [ELECTRONIC SIGNATURE.] "Electronic signature" 
  1.20  means an electronic sound, symbol, or process attached to or 
  1.21  logically associated with a record and executed or adopted by a 
  1.22  person with the intent to sign the record. 
  1.23     Sec. 3.  Minnesota Statutes 2002, section 223.177, 
  1.24  subdivision 3, is amended to read: 
  1.25     Subd. 3.  [CONTRACTS REDUCED TO WRITING.] A voluntary 
  1.26  extension of credit contract must be reduced to writing by the 
  2.1   grain buyer and mailed or given to the seller before the close 
  2.2   of the next business day after the contract is entered into or, 
  2.3   in the case of an oral or phone contract, after the written 
  2.4   confirmation is received by the seller.  Provided, however, that 
  2.5   if a scale ticket has been received by the seller prior to the 
  2.6   completion of the grain shipment, the contract must be reduced 
  2.7   to writing within ten days after the sale, but not later than 
  2.8   the close of the next business day after the completion of the 
  2.9   entire sale.  The form of the contract shall comply with the 
  2.10  requirements of section 223.175.  A grain buyer may use an 
  2.11  electronic version of a voluntary extension of credit contract 
  2.12  that contains the same information as a written document and 
  2.13  that conforms to the requirements of this chapter to which a 
  2.14  seller has applied an electronic signature in place of a written 
  2.15  document.  There must not at any time be an electronic and paper 
  2.16  voluntary extension of credit contract representing the same lot 
  2.17  of grain. 
  2.18     Sec. 4.  Minnesota Statutes 2002, section 232.21, is 
  2.19  amended by adding a subdivision to read: 
  2.20     Subd. 6a.  [ELECTRONIC DOCUMENT.] "Electronic document" 
  2.21  means a document that is generated, sent, received or stored by 
  2.22  electronic, optical, or similar means, including electronic data 
  2.23  interchange, electronic mail, telegram, telex, or telecopy.  
  2.24  "Electronic document" includes, but is not limited to, warehouse 
  2.25  receipts, grain purchase contracts, and voluntary extension of 
  2.26  credit contracts. 
  2.27     Sec. 5.  Minnesota Statutes 2002, section 232.21, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 6b.  [ELECTRONIC GRAIN WAREHOUSE 
  2.30  RECEIPT.] "Electronic grain warehouse receipt" means an 
  2.31  electronic version of a grain warehouse receipt issued or 
  2.32  transmitted to a depositor by a grain warehouse operator under 
  2.33  the provisions of section 232.23 in the form of an electronic 
  2.34  document.  An electronic grain warehouse receipt is a negotiable 
  2.35  instrument except as provided in section 232.23, subdivision 11. 
  2.36     Sec. 6.  Minnesota Statutes 2002, section 232.21, is 
  3.1   amended by adding a subdivision to read: 
  3.2      Subd. 6c.  [ELECTRONIC SIGNATURE.] "Electronic signature" 
  3.3   means an electronic sound, symbol, or process attached to or 
  3.4   logically associated with a record and executed or adopted by a 
  3.5   person with the intent to sign the record. 
  3.6      Sec. 7.  Minnesota Statutes 2002, section 232.23, 
  3.7   subdivision 4, is amended to read: 
  3.8      Subd. 4.  [FORM OF GRAIN WAREHOUSE RECEIPT.] (a) A grain 
  3.9   warehouse receipt must be in duplicate, contain the name and 
  3.10  location of the grain warehouse, and be delivered to the 
  3.11  depositor or the depositor's agent.  Grain warehouse receipts 
  3.12  shall be consecutively numbered as prescribed by the 
  3.13  commissioner and state the date of deposit, except where the 
  3.14  deposit of a certain lot for storage is not completed in one 
  3.15  day.  In that case, the grain warehouse receipt, when issued, 
  3.16  shall be dated not later than Saturday of the week of delivery.  
  3.17     (b) A grain warehouse receipt shall contain either on its 
  3.18  face or reverse side the following specific grain warehouse and 
  3.19  storage contract:  "This grain is received, insured and stored 
  3.20  through the date of expiration of the annual licenses of this 
  3.21  grain warehouse and terms expressed in the body of this grain 
  3.22  warehouse receipt shall constitute due notice to its holder of 
  3.23  the expiration of the storage period.  It is unlawful for a 
  3.24  public grain warehouse operator to charge or collect a greater 
  3.25  or lesser amount than the amount filed with the commissioner.  
  3.26  All charges shall be collected by the grain warehouse operator 
  3.27  upon the owner's presentation of the grain warehouse receipt for 
  3.28  the sale or delivery of the grain represented by the receipt, or 
  3.29  the termination of the storage period.  Upon the presentation of 
  3.30  this grain warehouse receipt and payment of all charges accrued 
  3.31  up to the time of presentation, the above amount, kind and grade 
  3.32  of grain will be delivered within the time prescribed by law to 
  3.33  the depositor or the depositor's order."  
  3.34     (c) A grain warehouse receipt shall also have printed on it 
  3.35  the following:  
  3.36                       "Redemption of Receipt 
  4.1      Received from .............., the sum of $........ or 
  4.2   ........  bushels in full satisfaction of the obligation 
  4.3   represented by this grain warehouse receipt.  
  4.4      Gross price per bushel $.......  
  4.5      Storage per bushel $.......  
  4.6      Net price per bushel $.......  
  4.7      All blank spaces in this grain warehouse receipt were 
  4.8   filled in before I signed it and I certify that I am the owner 
  4.9   of the commodity for which this grain warehouse receipt was 
  4.10  issued and that there are no liens, chattel mortgages or other 
  4.11  claims against the commodity represented by this grain warehouse 
  4.12  receipt.  
  4.13                                 Signed ............ 
  4.14  Accepted ..................    Dated  ............
  4.15          Warehouse operator
  4.16     This redemption shall be signed by the depositor or the 
  4.17  depositor's agent in the event that the grain represented is 
  4.18  redelivered or purchased by the public grain warehouse 
  4.19  operator.  Signature of this redemption by the depositor 
  4.20  constitutes a valid cancellation of the obligation embraced in 
  4.21  the storage contract."  
  4.22     (d) A warehouse receipt for dry edible beans must state the 
  4.23  grade of the dry edible beans delivered to the grain warehouse 
  4.24  and the redelivery charge required under subdivision 10a, 
  4.25  paragraph (a).  
  4.26     (e) An electronic version of a grain warehouse receipt 
  4.27  generated by a vendor licensed and approved by the United States 
  4.28  Department of Agriculture that contains the same information as 
  4.29  the paper version of a grain warehouse receipt may be issued 
  4.30  instead of a paper document.  The electronic version of a grain 
  4.31  warehouse receipt carries the same rights and obligations as the 
  4.32  paper version.  At no time may a paper receipt and an electronic 
  4.33  receipt represent the same lot of grain.  Redemption of an 
  4.34  electronic version of a warehouse receipt may be accomplished by 
  4.35  the warehouse receipt holder applying an electronic signature 
  4.36  registered and authenticated by a vendor credited by the United 
  5.1   States Department of Agriculture.