H*2909 Session 105 (1983-1984)
H*2909(Rat #0194, Act #0112 of 1983) General Bill, By McKay and J.J. Snow
A Bill to amend Sections 39-21-310, as amended, 39-21-350, 46-41-20, 46-41-90,
46-41-220, all as amended, and Section 46-42-30, Code of Laws of South
Carolina, 1976, relating to the State Warehouse System and dealers and
handlers of agricultural products, so as to provide that payments to the
Special Warehouse Account shall be discontinued at seven hundred fifty
thousand dollars instead of three million dollars; to authorize the use of
forms approved by the State Department of Agriculture and to exempt persons
who pay cash at time of delivery from dealers and handlers regulation; to
delete a provision which allowed a refund of assessment; to required one-half
of grain or oilseed sampled, tested, or graded to be returned to the deliverer
if requested; to amend the 1976 Code by adding Section 46-41-250, so as to
provide for exemption from participation in the Dealers and Handlers Guaranty
Fund for any producer who does not wish to pay the assessment nor receive the
protection of the Fund.-amended title
04/14/83 House Introduced and read first time HJ-2210
04/14/83 House Referred to Committee on Agriculture and Natural
Resources HJ-2210
05/25/83 House Committee report: Favorable with amendment
Agriculture and Natural Resources HJ-3111
05/31/83 House Amended HJ-3287
05/31/83 House Read second time HJ-3290
06/01/83 House Read third time and sent to Senate HJ-3324
06/01/83 Senate Introduced and read first time SJ-1674
06/01/83 Senate Referred to Committee on Agriculture and Natural
Resources SJ-1674
06/01/83 Senate Recalled from Committee on Agriculture and
Natural Resources SJ-1682
06/02/83 Senate Read second time SJ-1763
06/03/83 Senate Read third time and enrolled SJ-1850
06/08/83 Ratified R 194
06/13/83 Signed By Governor
06/13/83 Effective date 06/13/83
06/13/83 Act No. 112
06/21/83 Copies available
(A112, R194, H2909)
AN ACT TO AMEND SECTIONS 39-21-310, AS AMENDED, 39-21-350, 46-41-20, 46-41-90,
46-41-220, ALL AS AMENDED, AND SECTION 46-42-30, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO THE STATE WAREHOUSE SYSTEM AND DEALERS AND HANDLERS OF
AGRICULTURAL PRODUCTS, SO AS TO PROVIDE THAT PAYMENTS TO THE SPECIAL WAREHOUSE
ACCOUNT SHALL BE DISCONTINUED AT SEVEN HUNDRED FIFTY THOUSAND DOLLARS INSTEAD OF
THREE MILLION DOLLARS; TO AUTHORIZE THE USE OF FORMS APPROVED BY THE STATE
DEPARTMENT OF AGRICULTURE AND TO EXEMPT PERSONS WHO PAY CASH AT TIME OF DELIVERY
FROM DEALERS AND HANDLERS REGULATION; TO DELETE A PROVISION WHICH ALLOWED A
REFUND OF ASSESSMENTS; TO REQUIRE ONE-HALF OF GRAIN OR OILSEED SAMPLED, TESTED,
OR GRADED TO BE RETURNED TO THE DELIVERER IF REQUESTED; TO AMEND THE 1976 CODE
BY ADDING SECTION 46-41-250, SO AS TO PROVIDE FOR EXEMPTION FROM PARTICIPATION
IN THE DEALERS AND HANDLERS GUARANTY FUND FOR ANY PRODUCER WHO DOES NOT WISH TO
PAY THE ASSESSMENT NOR RECEIVE THE PROTECTION OF THE FUND.
Be it enacted by the General Assembly of the State of South Carolina:
Revenues
SECTION 1. Section 39-21-310 of the 1976 Code, as last amended by Section 11 of
Act 156 of 1981, is further amended to read:
"Section 39-21-310. All net revenues derived from operation of the state
warehouse system, over and above the amounts necessary to pay insurance premiums
and premiums on the bonds of warehousemen, must be transferred annually to a
special account in the State Treasury until the sum of three million dollars
accrues and the sum must be maintained at three million dollars by annual
transfers to the account, from excess warehouse revenues, of whatever amount is
necessary to restore the fund to the sum of three million dollars. In order to
support the increase of this fund to the sum of three million dollars, the funds
must be invested at interest by the State Treasurer who shall credit any interest
earned thereon to the increase of the fund. In addition to the interest, the
Commissioner must also assess an amount ratably against each warehouseman in
South Carolina issuing warehouse receipts a special additional fee not to exceed
ten cents per bale of cotton or one cent per bushel of soybeans and one-half cent
per bushel of any other stored feed grains or oil seeds for which warehouse
receipts have been issued commencing July 1, 1967. The additional assessment may
be charged not more than once for each receipt issued on any bale of cotton or
bushel of grain. When the fund has reached the total sum of seven hundred fifty
thousand dollars, the special additional assessment must be discontinued. The
funds must be used to guarantee state warehouse receipts in excess of any amount
recovered from the bonds required hereunder. In no event may the funds be
available for the reimbursement of any insurer or surety on the bonds required
by this chapter, Chapter 19 of this title, or Chapter 7 of Title 36, who has paid
a loss hereunder. All income, interest or otherwise, derived from this guaranty
fund must be reinvested in such fund. Fifty thousand dollars of the income must
be paid into the General Fund of the State. Any of the funds not appropriated
for the employment of additional auditors for the Warehousemen and Dealers and
Handlers Division of the Department of Agriculture must be returned to the
fund."
Current and complete records required
SECTION 2. Section 39-21-350, added to the 1976 Code by Section 12 of Act 156
of 1981, is amended to read:
"Section 39-21-350. The manager of the warehouse shall, on forms approved
by the Department of Agriculture pursuant to regulations promulgated by the
Department, maintain current and complete records at all times with respect to
all feed grains and oil seeds, including grain owned by him as well as other feed
grains or oil seeds not subject to the terms of the state warehouse system,
stored in or handled through the warehouse. Such records must include, but not
be limited to a daily record showing:
(a) The total quantity of each kind and class of feed grains or oil seeds
received and delivered and the quantity of each kind and class of feed grains or
oil seeds remaining in the warehouse as of the close of each business day.
(b) The warehouseman's total storage obligations for each kind and class of
feed grains or oil seeds as of the close of each business day.
Incoming feed grains or oil seeds must be documented as to ownership and as
to whether such feed grains or oil seeds are owned by the warehouseman or someone
else. Feed grains or oil seeds received may be purchased by the warehouse before
or upon arrival at the elevator or warehouse and after they have been in storage
for a time. All operations must be properly documented to reflect ownership,
quantity of feed grains, or oil seeds received, quantity delivered, and quantity
in storage in the warehouse."
Affidavit
SECTION 3. Item (2) of Section 46-41-20 of the 1976 Code, as last amended by
Section 15 of Act 156 of 1981, is further amended to read:
"(2) All persons who buy for cash and pay at the time of delivery with
United States currency and maintain on file in the office of the Commissioner an
affidavit of this fact which shall be renewed on an annual basis."
Record required
SECTION 4. Section 46-41-90 of the 1976 Code, as last amended by Section 22 of
Act 156 of 1981, is further amended to read:
"Section 46-41-90. Every dealer in agricultural products must upon the
receipt of agricultural products on consignment basis and as he handles and
disposes of them, make and preserve for at least one year a record, specifying
the name and address of the producer consigning the agricultural products, the
date of receipt, and the kind and quality of such produce. Such consignment
sales must be substantiated by a written contract on forms approved by the
Department of Agriculture. The dealer must make payment in settlement for such
shipment to the producer within ten days after the sale of such agricultural
products, unless otherwise agreed in writing."
Application for exemption
SECTION 5. The 1976 Code is amended by adding:
"Section 46-41-250. Notwithstanding any other provision of this chapter,
any producer may elect not to participate in the fund for any calendar year by
applying for an exemption with the South Carolina Department of Agriculture as
provided in this section.
The election consists of a written, notarized application upon a form
designed and provided by the Department of Agriculture. The application must be
filed with the Department before April 1 of the year for which the exemption is
desired.
Upon filing of the application, the Department must issue the applicant an
exemption certificate specifying the producer, commodity exempted, and period of
exemption. Such certificate, when presented to the grain dealer upon delivery
of the grain, entitles the specified producer to an exemption from the dealer's
and handler's assessment on the specified commodity.
When an exemption is granted under this section the grain dealer must retain
a copy of the exemption certificate for a period of not less than two years. Any
producer who elects not to participate in the fund is not eligible to be
reimbursed for any loss for the commodity exempted for that calendar year."
Assessment
SECTION 6. Section 46-41-220 of the 1976 Code, as last amended by Act 468 of
1982, is further amended to read:
"Section 46-41-220. An assessment of one cent per bushel must be
imposed on all soybeans and one-half cent per bushel on all other grain delivered
by producers to grain dealers, licensed under this chapter, other than grain for
which a producer has received payment in currency or cashier's check on delivery,
or received a state warehouse receipt issued in the producer's name or that of
his designee. The assessment must be collected by the grain dealer from the
producer and must be remitted to the Department by the grain dealer. The
Department shall remit the assessment to the State Treasurer to be credited to
the fund.
If grain is held by a grain dealer for more than one year or if a contract
on grain is not fulfilled within one year a further assessment equal to the first
must be paid."
One-half of grain returned to dealer if requested
SECTION 7. Section 46-42-30 of the 1976 Code is amended to read:
"Section 46-42-30. If requested by the deliverer of grain or oilseed
on which a discount or weight deduction is assessed, one-half must be placed and
sealed in a tamper-proof container provided by the Department of Agriculture and
the container must be returned to the deliverer of the grain or oilseed sampled,
tested or graded. Records shall be maintained for a period of one year on each
lot of grain or oilseed for which a grade is determined by the dealer and handler
in order to assist the Commissioner in evaluation grading performance. The
Commissioner may suspend or revoke a grader's certificate when he deems the
grader incapable of competent performance."
Time effective
SECTION 8. This act shall take effect upon approval by the Governor. |