Grain Dealers Regulatory Compilation – Center for Agricultural and Shale Law

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Grain Dealer Regulations - Licensing

What is Grain Dealer Licensing?

Licensing creates a statutory requirement mandating that grain dealers submit an application and obtain a license from the state before engaging in business activity. If the legislation has been enacted after the grain dealer has been in operation within the state, the grain dealer will be required to obtain a license to continue operations

Which States Use Licensing to Regulate Grain Dealers?

Of the thirty-four states which have created legislation aimed at regulating grain dealers, thirty-three of those states have created regulations requiring grain dealers to be licensed by the state: Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Virginia, Washington, West Virginia, and Wisconsin.

What are the Types of Provisions in Licensing Statutes?

The states which have chosen to create a licensing requirement for grain dealers generally have seven core provisions.

License Required—The most basic provision which every state has included in their legislation makes it mandatory that any individual or other corporate structure who plans to conduct business as a grain dealer must first obtain a license from the state. If an individual conducts business as a grain dealer without a license most of the states have created penalties resulting in fines.
Application Process—States require an applicant seeking to obtain a license to operate as a grain dealer within the state to send in an application, generally on a form prescribed by the state. The states have varying depths of information needed to obtain a license.
Renewal—This provision requires grain dealers to renew their license at the end of a given time period. The majority of states have chosen to make license renewal annual and some states have included the ability for license terms to be extended beyond a year. Where states differ drastically is on the requirements necessary to renew. Some states have chosen a simple fee renewal process while other states have a more intensive yearly renewal process such as requiring financial records created by an independent accountant as well as premise inspections.
Fees—An initial application fee may be required to obtain a license. The fee amount varies from a flat fee, percentage based upon volume of business conducted, or a combination of other factors. Additionally, most states require a fee every time the license must be renewed.
Posting—Posting requires the licensee to display the license at their principal place of business. Licensees may also be required to display certificates at other locations of business within the state and in any vehicles used.
Refusal, Suspension, Revocation—Most states have written in the power to refuse a new license, suspend a license pending investigations, and revoke a license based upon findings of an investigation. Most states have compiled lists for reasons why a license may be refused or revoked.
Contesting License Refusal and Hearing—A licensee will be notified when their license has been refused, temporarily suspended, or revoked. Once notification is received, a licensee may be able to request a hearing or a hearing may be required by statute. At the hearing, evidence can be presented and a decision will be rendered to either uphold the refusal, suspension, or revocation, or to overturn the decision.

What is Typical of Each Provision?

License Required
- Every state that has created grain dealer legislation has included a short provision which requires a license to be procured before a grain dealer may present themselves and conduct business as a grain dealer within the state. All of the states have kept this provision very brief, generally one sentence, with little variation. Arkansas is the only state which explicitly mentions that if a grain dealer exists before enactment of the legislation, the dealer would have sixty days in which to become compliant and obtain a license after the legislation came into effect.

Exceptions
- States do have exceptions to obtaining a license such as if the grain dealer is a cash buyer. A cash buyer provides immediate payment to the producer, eliminating the need to protect the producer from non-payment. New Mexico and Wisconsin have included exceptions within the license required provision of the statute. However, most states have placed their licensing exceptions within the definition section of their grain dealer statutes.

Application Process
- Basic Information—Most states require an applicant’s basic information to be provided when applying for a license such as: applicant name, address, business name and type, and which kind of grain the dealer wants to handle.
  Criminal Background Check: California and Indiana are the only states that require applicants to submit to a criminal history check or indicate if they have any prior criminal history.
- Time—Some statute language provides the reviewing department with a time limit to deny or approve the application materials. If applicants need more time to gather information required to file an application, some states provide statute language allowing for an extension.
- Financial Statements—Most states require a financial statement to be filed with the application. Financial statements are to be compiled by a certified accountant. The statements should follow general accounting principles and include certain information such as assets, liabilities, and equity. Most states require applicants to file a bond unless their financial statement reflects a certain asset-to-liability ratio or minimum asset dollar amount.

Renewal
- Expiration Date—States have varying statute language as to when a license will expire. Most statutes mark the expiration date as one year from the date of issuance. Other statutes declare a specific calendar date each year that licenses will expire on. Others explain that licenses will expire a certain amount of time after the dealer’s fiscal year has ended.
- Renewable Application—In order to renew a license, dealers must file an application for renewal, along with a fee, before the date of expiration. Some statutes declare that all materials required for the initial license application are also required for renewal. Late fees and reinstatement fees may be assessed if the license expires before the renewal application is received.

Fees
- Filing Fees—When a dealer files an application for a license, a filing fee is required. The amount of the filing fee varies from state to state. The fee may be a set amount or may be based on the class of license. The class of a license is based on the size of the business often determined by number of bushels handled or anticipated per year.
- Renewal Fees—When a license is due for renewal, a fee is required for the renewal. The fee amount may be the same as the initial license filing fee, or the fee may be a different amount depending on the state.
- Penalties—A penalty fee may be charged if the dealer fails to file for renewal before the license expires. Most penalty fees range from $25 to $100. Wisconsin also charges additional surcharges if a dealer files an incorrect financial statement with their application or renewal.

Posting
- Primary Location—States require licensed grain dealers to post or display their license at their office or primary place of business. California and Colorado use language requiring the license to be displayed in “plain view of the public.” Most other states use language requiring the license to be displayed in a “conspicuous” location.
- Additional Locations—Most states include statute language requiring licenses also be displayed in each additional location of business. Additional locations include trucks or tractors used when making business transactions. California adds that directors must obtain a card for members of a partnership to show to interested persons indicating their business is licensed.

Grounds for Refusal, Suspension, Revocation
- False Statements/Misrepresentation—Many states include language denying or revoking a license if the licensee makes a false or misleading statement regarding the “condition, quality, or quantity” of goods handled or sold. These states may also deny or revoke licenses for misrepresentations of “market conditions or service rendered.” West Virginia and Delaware are the only states that add “intent” to deceive or defraud to the statute language in this subsection.
- Violations—If a licensee violates any regulations or provisions in the statute’s chapter, their licensee may be revoked or suspended.
- Inspections—A license may be revoked or suspended if a licensee refuses to submit to an inspection or audit including failure to provide financial records or documents on request.
- Bonds—Failure of a licensee to file the required bonds may result in refusal, suspension, or revocation of a license.
- Previously Suspended/Revoked—States may deny a license application or revoke a current license if the licensee has had a license previously revoked or suspended in the current state or in another state. Some states list factors they will consider in their decision such as length of previous suspension and steps taken to get a previously suspended license reinstated.

Contesting License Refusal and Hearing
- Notice—Notice of the license refusal, suspension, or denial is required to be sent to the applicant/licensee within a designated amount of time: usually 10 to 20 days. Notice of hearing will be sent to the applicant/licensee if a hearing is set by the commissioner.
- Hearing—Some states will automatically set a hearing on the refusal, suspension, or revocation of a license before action is taken. If a hearing is not automatically set, an applicant/licensee may file a request for hearing and a hearing will be set. The amount of time to set a hearing varies by state, but usually ranges from 10 to 30 days after receiving the hearing request.
- Appeal—After a hearing is held, a licensee may appeal the commissioner’s decision with a certain amount of time of the decision. The rules governing appeals are found in other statute chapters or sections. The statute language under this provision directs readers to the statute governing appeals procedures.

State-by-State Statutory Language for Each Provision

Alabama

License Required

“No person may engage in business as a grain dealer in the State of Alabama without a license therefor issued by the commissioner …”

Ala. Code § 2-31-3 (2024)

Application Process

“Application for a license to engage in business as a grain dealer shall be filed with the commissioner and shall be on a form prescribed . . . The application shall set forth the name of the applicant … the location of the principal office or place of business … the location or locations in this state at which the applicant proposes to engage in business as a grain dealer, the kind of grain … proposes to handle, the type of business which the applicant proposes to conduct, and additional information as … may require. The application for an initial license may be filed at any time prior to beginning business as a grain dealer.”

Ala. Code § 2-31-3 (2024)

Renewal

“The license shall be renewed annually on or before October 1.”

Ala. Code § 2-31-3 (2024)

Fees

“The application for a license … or a renewal thereof, shall be accompanied by a filing fee determined by the amount of grain storage capacity … A person with no storage capacity is required to pay a $25.00 filing fee.”

Ala. Code § 2-31-3 (2024)

Posting

“Each person issued a license by the commissioner under this section shall post such license in the principal office of the grain dealer in this state. A certificate shall be posted in each location where the licensee engages in the business of buying grain in the State of Alabama.”

Ala. Code § 2-31-9 (2024)

Refusal, Suspension, Revocation

“Failure of a grain dealer to file a bond and insurance as hereinafter required to keep such bond and insurance in force shall be grounds for the suspension or revocation of a license issued under this article.”

Ala. Code § 2-31-7 (2024)

“The commissioner may, upon his own motion or upon the verified complaint in writing of any producer setting forth facts which if proved would constitute grounds for refusal, suspension or revocation of a license under this article, investigate the actions of any applicant or any person or persons applying for, holding or claiming to hold a license, and upon 10 days written notice the commissioner may suspend, revoke, or fail to renew the license of the grain dealer. This notice shall specify the exact grounds depended upon by the commissioner for his action.”

Ala. Code § 2-31-11 (2024)

Contesting License Refusal and Hearing

“The grain dealer, after being notified of the commissioner’s decision to suspend, revoke, refuse to renew or refuse to initially issue a license may request a hearing before the commissioner concerning his action. Said request for hearing must be in writing and if the action taken by the commissioner is revocation, suspension or failure to renew an existing license, said written request for a hearing, submitted by the grain dealer, if received by the commissioner within 10 days after his notification to the grain dealer, the intended action by the commissioner shall be stayed pending the outcome of the hearing. Failure of the grain dealer to submit written request for a hearing within 10 days after receiving notification of the commissioner’s action will, in the discretion of the commissioner, be grounds for not staying the action of the commissioner in suspending, revoking or failing to renew the license.”

Ala. Code § 2-31-12 (2024)

“The above hearing shall be formal and shall be held no less than 10 days after notice is given to the grain dealer of the hearing nor more than 30 days after the commissioner has received the request for the hearing.

The commissioner or his designated representative shall preside over the hearing and it shall be the burden of the grain dealer to show that the grounds set out in the commissioner’s letter of revocation, suspension or failure to renew would not constitute grounds to support the action taken by the commissioner. In this hearing and all other hearings and matters contemplated under the laws which the commissioner is responsible for regulation, he shall act in a quasi-judicial capacity.

Sworn testimony will be heard and any evidence whether hearsay or not, of probative value will be admissible at the hearing.

Any producer, at the discretion of the commissioner demonstrating a pecuniary interest in the outcome of the hearing may be allowed to intervene as a party to the hearing. Any party to the hearing may either represent himself or be represented by counsel. Formal rules of pleading or evidence shall not be required at the hearing but the guidelines set out for an administrative board hearing by the appellant courts of Alabama shall be followed so long as they do not conflict with the provisions of this article or other laws, the responsibility of the commissioner for enforcement or regulation.”

Ala. Code § 2-31-13 (2024)

Arkansas

License Required

“(a)(1) A dealer shall obtain a license from the State Plant Board under this chapter before entering into a contract for or purchasing grain.

(2) A dealer that exists as of the effective date of this chapter has sixty (60) days from March 23, 2015 to obtain a license.”

Ark. Code Ann. § 2-24-104(a) (2024)

Application Process

“(a) The State Plant Board shall issue a license to a dealer that satisfies the requirements of this chapter and the rules promulgated by the board.

(b) A dealer seeking licensure under this chapter shall submit an application to the board on the form prescribed by the board.”

Ark. Code Ann. § 2-24-105(a)-(b) (2024)

Renewal

“(b)(1) A license is valid from July 1 of the year of application until June 30 of the following year.

(2) However, an initial license received between January 1 and June 30 is valid only until June 30 of the year in which the license was obtained.”

Ark. Code Ann. § 2-24-104(b) (2024)

“(c)(1) A dealer shall renew its license annually as long as the dealer is operating in the state.

(2) A dealer shall apply for renewal of a license issued under this chapter by submitting an application for renewal on the form prescribed by the board.

(3) An application for renewal shall be received by the board on or before June 30.

(4) The board shall renew the license of a dealer that satisfies the requirements of this chapter and the rules promulgated by the board.”

Ark. Code Ann. § 2-24-105(c) (2024)

“(e) If a dealer does not renew its license by the deadline stated in subsection (c) of this section, then the dealer’s license is terminated, and it shall not be reinstated until the dealer submits an application for renewal and meets all other requirements of this chapter and the rules promulgated by the board.”

Ark. Code Ann. § 2-24-105(e) (2024)

Fees

“(d) The board may establish nominal application and renewal fees to offset the costs of administering this chapter.”

Ark. Code Ann. § 2-24-105(d) (2024)

Posting

N/A

Refusal, Suspension, Revocation

“(a)(1) The State Plant Board may temporarily suspend a dealer’s license without a hearing if the board determines that the public health, safety, or welfare requires immediate action.”

Ark. Code Ann. § 2-24-109(a)(1) (2024)

“(b)(1) Based on the information contained in the complaint submitted against a dealer, the board may suspend the license of the dealer without a hearing five (5) days after sending written notice by certified mail, nonrestricted delivery, to the dealer if the dealer:

(A) Does not have the required bond on file with the board; or

(B) Refuses to submit to an audit or inspection by the board under this chapter.

(2) A suspension of a dealer’s license under subdivision (b)(1) of this section shall not exceed sixty (60) days without a hearing.”

Ark. Code Ann. § 2-24-109(b) (2024)

Contesting License Refusal and Hearing

“(a)(2) If the board temporarily suspends a dealer’s license under subdivision (a)(1) of this section, the board shall notify the dealer immediately by certified mail of the temporary suspension and the date, time, and location of the hearing to be held under subdivision (a)(3) of this section.

(3) If a dealer’s license is temporarily suspended under subdivision (a)(1) of this section, a hearing on the suspension of the dealer’s license shall be held within ten (10) days of the temporary suspension of the dealer’s license.”

Ark. Code Ann. § 2-24-109(a)(2)-(3) (2024)

“(c) A hearing under this section and an appeal of the board’s decision to suspend a dealer’s license under this section is governed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.”

Ark. Code Ann. § 2-24-109(c) (2024)

California

License Required

” … any person engaged in the business of buying, receiving on consignment, soliciting for sale on commission, or negotiating the sale of farm products from a licensee or producer for resale shall be licensed as provided in this chapter.”

Cal. Food & Agric. Code § 56181 (2024)

Application Process

“Any person required by Section 56181 to be licensed shall file an application with the director for a license to transact business before engaging in such business.”

Cal. Food & Agric. Code § 56182 (2024)

“The application shall in each case state all of the following:

(a) Every class of farm products which the applicant proposes to handle.

(b) The full name of the person that is applying for such license. If the applicant is a firm, exchange, association, or corporation, the full name of each member of the firm, or the names of the officers of the exchange, association, or corporation shall be given in the application.

(d) The name of each person authorized to receive and accept service of summons and legal notices of all kinds for the applicant.”

Cal. Food & Agric. Code § 56183 (2024)

“(a) An initial application, at a minimum, shall include the following:

(1) A release authorizing the department, during consideration of the application and for the duration of licensure, to have access to and obtain financial information from both of the following:

(A) The applicant’s files with credit reporting agencies.

(B) The applicant’s files with banks, savings and loan associations, or any other financial institutions with whom the applicant has done business in the past or with whom the applicant intends to do business during the year of licensure.

(2) A notice signed by the applicant that the department may obtain criminal record information during the course of a licensing investigation or upon presentation with a reasonable basis to believe the licensee has been convicted of a crime. An applicant whose application is incomplete shall be given written notice that a failure to complete it within 60 calendar days shall result in denial of the application.

(b) The documents and information procured pursuant to this section shall be considered the records of a consumer and shall not be construed to be a public record. The documents and information shall remain confidential, except in actions brought by the department to enforce this division, or as a result of the issuance of a subpoena in accordance with Section 1985.4 of the Code of Civil Procedure. The unauthorized release of the documents received from the Department of Justice or the information contained in those documents is a misdemeanor.

(c) The department shall adopt regulations that specify the proper and necessary information and supporting documentation the department requires for an application to be considered complete.”

Cal. Food & Agric. Code § 56183.5 (2024)

“The department shall accept or deny an application within 90 calendar days of receipt of a completed application. The department may deny, condition, suspend, or revoke a license issued pursuant to this chapter upon any of the following grounds and in the manner provided in this chapter:

(a) Upon one flagrant violation, as determined by the department, or upon repeated violations, by the holder or applicant, of any one or combination of the sections of this division or under any one or combination of the regulations promulgated by the department under the authority of this division.

(b) Upon one flagrant violation, as determined by the department, or upon repeated violations, by a holder’s or applicant’s agent, employee, or contractor, or of an organization or entity in which the holder or applicant holds a significant financial interest, of any one or combination of the sections of this division or any one or combination of the regulations promulgated under this division under circumstances where the holder or applicant knew or should have known and failed to take reasonable measures to prevent the violation or failed to report the violation to the department upon learning of the violation.

(c) Upon the conviction of the holder or applicant of a crime that includes as one of its elements the financial victimization of another person. However, if the licensee was licensed prior to January 1, 1998, and the department knew of, or was on notice of, the conviction, that conviction may not form the basis of a disciplinary action under this subdivision.

(d) On the grounds of a false or misleading statement by a holder or applicant that the holder or applicant knew or should have known to be false or misleading, directed to any official of any government concerning the scope of any indicia of authority, including, but not limited to, the holder’s or applicant’s license associated with the holder’s or applicant’s business, the standards under which the indicia was authorized, the contents of the application for licensure, or the holder’s or applicant’s relationship to the indicia.

(e) On the grounds that a holder or applicant, or a holder’s or applicant’s agency, employee, or contractor, or an organization or entity in which a holder or applicant holds a significant financial interest, deceived a grower in any material matter. Deception, for purposes of this subdivision, does not require scienter, but requires active misrepresentation where the actor knew the representation to be false or where the actor should have known, with due consideration, that he or she did not know whether or not the representation was true or false.”

Cal. Food & Agric. Code § 56185 (2024)

“(a) If an application for a license indicates, or the department determines during the application review process, that the applicant was issued a license that was revoked within the preceding two years, the department shall cease any further review of the application until two years have elapsed from the date of the revocation. The cessation of review shall not constitute a denial of the application for the purposes of this chapter, or any other provision of law.

(b) If an application for a license indicates, or the department determines during the application review process, that the applicant had previously applied for a license and the application was denied within the last year, the department shall cease further review of the application until 30 days have elapsed from the date of the notification of the denial or from the effective date of the decision and order of the department upholding a denial. The cessation of review shall not constitute a denial of the new applicant for purposes of this chapter, or any other provision of law.

(c) Nothing in subdivision (a) or (b) prohibits the department from taking into account the basis for denial or revocation in considering any new application subsequent to the elapse of the applicable period of prohibition.”

Cal. Food & Agric. Code § 56185.75 (2024)

Renewal

N/A

Fees

“(a) Except as otherwise provided in this article or Section 55863, each applicant for a license shall pay to the department a fee in accordance with the schedule in subdivision (b), except that an agent shall pay one hundred dollars ($100) for each license period of the principal.

(b) The amount of the fee due each year shall be determined by the annual dollar volume of business based on farm product value returned to the grower or licensee, as follows:

(1) For a dollar volume of less than twenty thousand dollars ($20,000), the fee shall be two hundred fifty dollars ($250).

(2) For a dollar volume of twenty thousand dollars ($20,000) and over, but less than fifty thousand dollars ($50,000), the fee shall be three hundred fifty dollars ($350).

(3) For a dollar volume of fifty thousand dollars ($50,000) and over, but less than two million dollars ($2,000,000), the fee shall be four hundred fifty dollars ($450).

(4) For a dollar volume of two million dollars ($2,000,000) and over, but less than four millions dollars ($4,000,000), the fee shall be five hundred fifty dollars ($550).

(5) For a dollar volume of four million dollars ($4,000,000) and over, the fee shall be six hundred fifty dollars ($650).”

Cal. Food & Agric. Code § 56571(a); (b)(1)-(5) (2024)

“(a) (1) If any licensee does not apply for the renewal of a preexisting license on or before the date of the expiration of the license, a penalty of twenty-five dollars ($25) shall be added to the fee provided for under Section 56571 or 56571.5. That penalty shall be paid within 30 days immediately following the license expiration date . Payment of the penalty shall entitle the applicant to 60 days from the date of the penalty payment to complete the application. If the application is not completed within such time, the application shall be denied and all fees retained by the department.

(2) If the penalty described in paragraph (1) is not paid within the 30-day period, any application for renewal of a preexisting license shall be treated as a new application.

(b) A new applicant shall have 60 days from the date of filing the application form and payment of the fee to complete the application. After the 60-day period has elapsed, if the application remains incomplete, the application may be denied and the application fee retained by the department.”

Cal. Food & Agric. Code § 56572 (2024)

“(a) If any person is found to be operating a business without the license required by Section 56181 or failed to pay the fee in accordance with the schedule in subdivision (b) of Section 56571, that person shall pay to the director double the amount of the license fee due pursuant to this chapter.

(b) In addition to subdivision (a), if any person is found to be operating a business within the past five years without a license required by Section 56181, or failed to pay the fees in accordance with the schedule in subdivision (b) of Section 56571, that person shall pay to the director an amount equal to that portion of the fees which were not paid for the last five years the business has operated.”

Cal. Food & Agric. Code § 56573.5 (2024)

Posting

“Each licensee shall post his license or a copy of it in his office or salesroom in plain view of the public.”

Cal. Food & Agric. Code § 56193 (2024)

“The director shall issue to any individual or member of a partnership, a card which specifies that he or his firm is licensed. The licensee shall show such card upon the request of any interested person.”

Cal. Food & Agric. Code § 56194 (2024)

Refusal, Suspension, Revocation

Cal. Food & Agric. Code § 56185 (2024)

“(a) The Legislature finds there to be a substantial nexus between the conduct specified in Section 56185 and an applicant’s or holder’s fitness for licensure.

(b) The department shall not dismiss an action where a violation, however minor, has been established. The department shall not dismiss an action because the applicant or holder establishes factors in mitigation.

(c) However, the department may impose discipline other than denial or revocation of the license. As an alternative to revocation of a license, the department may stay a revocation subject to terms for a period of probation. As an alternative to denial the department may issue a license subject to conditions. Terms of probation or terms of conditional licensure may include, but are not limited to, a requirement of restitution, payment for extra audits, immediate revocation on a new violation, or any other terms that respond to the particular violations or circumstances found.”

Cal. Food & Agric. Code § 56185.5(a)-(c) (2024)

“(a) If the director is not satisfied that an applicant or licensee is financially responsible, the director may, in lieu of denying, suspending, or revoking the license, accept an irrevocable guarantee of the obligations of the licensee to all California farm products creditors. The guarantee shall be for any periods and in any amounts that the director may from time to time require. The director may, as a condition of accepting and maintaining the guarantee, require the guarantor to supply financial information to the director at times and to the extent the director deems advisable.

(b) A guarantee placed with the director pursuant to subdivision (a) shall support an action in a court of competent jurisdiction by a farm products creditor for obligations of the licensee to the creditor and by a state officer for the obligations of the licensee to the state related to transactions subject to the guarantee.”

Cal. Food & Agric. Code § 56252.2 (2024)

Contesting License Refusal and Hearing

“(d) Nothing in this division or in any other provision of this code deprives the department of the authority to settle or adjudicate a disposition of a case other than by revocation or denial. The department or the department’s designee may compromise with the applicant or holder in a written stipulation and order. The department may, following a hearing, order probation on terms and conditions as determined by the department. The authority conferred by this subdivision shall include, but not be limited to, the authority to order payment of amounts determined owing, the authority to dismiss an action on the department’s own initiative, the authority to order administrative penalties, the authority to order a respondent to pay for heightened audit scrutiny, the authority to suspend a license for a period of years, or any combination of remedies other than final revocation or denial of a license.”

Cal. Food & Agric. Code § 58186.75(d) (2024)

Colorado

License Required

“(1) A person shall not act as a dealer, small-volume dealer, or agent without having obtained a license as provided in this part 3 …”

Colo. Rev. Stat. § 35-36-302(1) (2024)

“(6) Whenever the commissioner deems it appropriate, the commissioner may require a licensee or an applicant for an initial or renewal license to submit a financial statement or an audit prepared according to generally accepted accounting principles or any other information to determine whether the person is in an adequate financial position to carry out the person’s duties as a licensee.”

Colo. Rev. Stat. § 35-36-303(6) (2024)

Application Process

” (1) … Every person acting as a dealer, small-volume dealer, or agent shall file an application in writing with the commissioner for a license to transact the business of dealer, small-volume dealer, or agent, and the application must be accompanied by the license fee provided for in section 35-36-303 for each specified class of business.

(2) The application in each case must state the class or classes of farm products the applicant proposes to handle; the full name of the person applying for the license; and, if the applicant is a firm, exchange, association, or corporation, the full name of each member of the firm or the names of the officers of the exchange, association, or corporation. The application must further state the principal business address of the applicant in the state of Colorado and elsewhere and the names of the persons authorized to receive and accept service of summons and legal notices of all kinds for the applicant. The applicant shall further satisfy the commissioner of the applicant’s character, responsibility, and good faith in seeking to carry on the business stated in the application. In determining a person’s character, the commissioner shall comply with section 24-5-101.

(3) In addition to the general requirements applicable to all classes of applications, as set forth in this section, each application for an agent’s license must include such information as the commissioner may consider proper or necessary, and the application must include the name and address of the applicant and the name and address of each dealer or small-volume dealer represented or sought to be represented by the agent and the written endorsement or nomination of the dealer or small-volume dealer. A person shall not be licensed as an agent unless all of the agent’s principals are licensed under this part 3.

(4) Upon the applicant’s filing of the proper application with the commissioner, accompanied by the proper fee, and when the commissioner is satisfied that the convenience and necessity of the industry and the public will be served by the application, the commissioner shall issue to the applicant a license entitling the applicant to conduct the business described in the application at the place named in the application until the date specified by the commissioner by rule or until the license has been suspended or revoked. The license of an agent expires upon the date of expiration of the license of the principal for whom the agent acts. The commissioner may also issue a license to each agent, with a separate agent’s license being required for each principal. A dealer, small-volume dealer, or agent shall show the license upon the request of any interested person. Each licensed dealer, small-volume dealer, or agent shall post the person’s license or a copy of the license in the person’s office or salesroom in plain view of the public.”

Colo. Rev. Stat. § 35-36-302(1)-(4) (2024)

Renewal

“(2) If a licensee fails for any reason to apply for the renewal of a license before an annual date specified by the commissioner by rule, the licensee shall, upon application for a renewal license and before the license is issued, pay a penalty as established by the commission, which penalty is in addition to the license fee.”

Colo. Rev. Stat. § 35-36-303(2) (2024)

Fees

“(1)(a) For filing the application described in section 35-36-302, each applicant for a license in each of the following categories shall pay to the commissioner a fee as determined by the commission, which fee shall be transmitted to the state treasurer for credit to the inspection and consumer services cash fund created in section 35-1-106.5:

(I) Dealers; except that a dealer who signs an affidavit stating that the dealer will make payment in cash or by one of the other means specified in section 35-36-304 (1)(e) for each transaction for farm products shall pay the same application fee as a small-volume dealer;

(II) Agents; and

(III) Small-volume dealers.

(b) For each fiscal year, commencing on July 1, twenty-five percent of the direct and indirect costs of administering and enforcing this part 3 must be funded from the general fund. The commission shall establish a fee schedule to cover any direct and indirect costs not funded from the general fund.

(2) If a licensee fails for any reason to apply for the renewal of a license before an annual date specified by the commissioner by rule, the licensee shall, upon application for a renewal license and before the license is issued, pay a penalty as established by the commission, which penalty is in addition to the license fee.”

Colo. Rev. Stat. § 35-36-303(1)-(2) (2024)

Posting

“(4) Upon the applicant’s filing of the proper application with the commissioner, accompanied by the proper fee, and when the commissioner is satisfied that the convenience and necessity of the industry and the public will be served by the application, the commissioner shall issue to the applicant a license entitling the applicant to conduct the business described in the application at the place named in the application until the date specified by the commissioner by rule or until the license has been suspended or revoked. The license of an agent expires upon the date of expiration of the license of the principal for whom the agent acts. The commissioner may also issue a license to each agent, with a separate agent’s license being required for each principal. A dealer, small-volume dealer, or agent shall show the license upon the request of any interested person. Each licensed dealer, small-volume dealer, or agent shall post the person’s license or a copy of the license in the person’s office or salesroom in plain view of the public.”

Colo. Rev. Stat. § 35-36-302(4) (2024)

Refusal, Suspension, Revocation

“(5) The commissioner shall revoke any license granted as a result of fraud or misrepresentation in applying for the license. All indicia of the possession of a license are at all times the property of the state of Colorado, and each licensee is entitled to the possession of a license only for the duration of the license.”

Colo. Rev. Stat. § 35-36-302(5) (2024)

“(3) The commissioner shall not issue a license to any person against whose surety a claim has been collected or any person against whom an irrevocable letter of credit has been drawn by the commissioner in accordance with this part 3 during the period of three years after the date of the collection; except that the commissioner may, in the commissioner’s discretion and consistent with the purpose of this part 3, issue a temporary license to the person for the period, subject to such restrictions as the commissioner deems reasonable and necessary.

(4) The commissioner shall not issue a renewal license to a licensee who is the subject of a pending verified complaint until the complaint has been settled to the satisfaction of the commissioner.

(5) Upon the failure of an applicant to file a bond or an irrevocable letter of credit meeting the requirements of section 11-35-101.5, within ninety days after the date of application, the application will be rendered void, and the license fee will not be refunded. Any subsequent application for a license requires a new license fee.”

Colo. Rev. Stat. § 35-36-303(3)-(5) (2024)

“(1) The commissioner may deny an application for a license, refuse to renew a license, revoke or suspend a license, or place a licensee on probation, as the case may require, if the licensee or applicant has:

(a) Violated this part 3 or section 35-36-104 or violated any of the rules promulgated by the commissioner pursuant to this article 36;

(b) Been convicted of a felony under the laws of this state, any other state, or the United States; except that, in considering a conviction of a felony, the commissioner is governed by section 24-5-101;

(d) Failed or refused to file with the commissioner a surety bond or an irrevocable letter of credit, as required by section 35-36-304;

(e) Been determined by the commissioner to be in an inadequate financial position to meet liability obligations;

(f) Failed to comply with a lawful order of the commissioner concerning the administration of this part 3; or

(g) Had a license revoked, suspended, or not renewed or has been placed on probation in another state for cause, if the cause could be the basis for the same or similar disciplinary action in this state.

(2) All proceedings concerning the denial, refusal to renew, revocation, or suspension of a license or the placing of a licensee on probation shall be conducted pursuant to section 35-36-305 and article 4 of title 24.

(3) A previous violation of this part 3 or section 35-36-104 by the applicant or any person connected with the applicant in the business for which the applicant seeks to be licensed, or, in the case of a partnership or corporation applicant, any previous violations of this part 3 or section 35-36-104 by a partner, officer, director, or stockholder of more than thirty percent of the outstanding shares, is sufficient grounds for the denial of a license.”

Colo. Rev. Stat. § 35-36-306(1)-(3) (2024)

Contesting License Refusal and Hearing

“(1) For the purpose of enforcing this part 3, the commissioner may receive complaints from persons against a dealer, small-volume dealer, agent, or person assuming or attempting to act as a dealer, small-volume dealer, or agent and, upon the receipt of a complaint, may make any and all necessary investigations relative to the complaint.

(2) The commissioner upon the commissioner’s own motion may, and upon the verified complaint of any person shall, investigate any transactions involving this part 3.

(3)(a) The commissioner, upon consent of the licensee or upon obtaining an administrative search warrant, has free and unimpeded access to all buildings, yards, warehouses, and storage facilities owned by a licensee in which farm products are kept, stored, handled, processed, or transported.

(b) The commissioner, upon consent of the licensee or upon obtaining a search warrant, has free and unimpeded access to all records required to be kept by the licensee and may make copies of the records.

(c) The commissioner has full authority to administer oaths and take statements; to issue subpoenas requiring the attendance of witnesses and the production of all books, memoranda, papers, and other documents, articles, or instruments; and to compel the disclosure by the witnesses of all facts known to them relative to the matters under investigation. Upon the failure or refusal of a witness to obey a subpoena, the commissioner may petition the district court, and, upon a proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the order of the court is punishable as a contempt of court.

(4) The commissioner may examine the ledgers, books, accounts, memoranda, and other documents and the farm products, scales, measures, and other items in connection with the business of a licensee relating to whatever transactions may be involved.

(5) The commissioner need not investigate or act upon complaints regarding transactions that occurred more than one hundred twenty days before the date upon which the commissioner received the written complaint.

(6) If the investigation is against a licensee, the commissioner shall proceed to ascertain the names and addresses of all producers, dealers, small-volume dealers, or owners of farm products, together with the accounts unaccounted for or due and owing to them by the licensee, and shall request all the producers, dealers, small-volume dealers, or owners to file verified statements of their respective claims with the commissioner. If, after the commissioner makes the request for verified statements, a producer, dealer, small-volume dealer, or owner fails, refuses, or neglects to file a verified statement in the office of the commissioner within thirty days after the date of the request, the commissioner is relieved of any further duty or action under this part 3 on behalf of the producer, dealer, small-volume dealer, or owner.

(7) In the course of an investigation, the commissioner may attempt to effectuate a settlement between the respective parties.

(8)(a) If the commissioner determines, after concluding an investigation on a complaint, that reasonable grounds exist to believe that a licensee has violated this part 3 or section 35-36-104, the commissioner shall notify the licensee that the complaint is valid and inform the licensee of the licensee’s opportunity to request a hearing, in writing, on the complaint within ten days after the date of the notice.

(b) Upon the receipt of a request for a hearing from a licensee or if the commissioner determines that a hearing concerning a licensee is necessary, the commissioner shall cause a copy of the complaint or the grounds specified in section 35-36-306, together with a notice of the time and place of the hearing, to be served personally or by mail upon the licensee. Service shall be made at least ten days before the hearing, which shall be held in the city or town in which the business location of the licensee is situated, or in which the transactions involved allegedly occurred, or at the location deemed by the commissioner to be most convenient.

(c) The commissioner shall conduct the hearing pursuant to section 24-4-105. Thereafter, the commissioner shall enter in the commissioner’s office a decision specifying the relevant facts established at the hearing. If the commissioner determines from the facts specified that the licensee has not violated this part 3 or section 35-36-104, the commissioner shall dismiss the complaint. If the commissioner determines from the facts specified that the licensee has violated this part 3 or section 35-36-104, and that the licensee has not yet made complete restitution to the person complaining, the commissioner shall determine the amount of damages, if any, to which the person is entitled as the result of the violation and enter an order directing the offender to pay the person complaining the amount of damages on or before the date fixed in the order. The commissioner shall cause to be furnished a copy of the decision to all the respective parties to the complaint.

(9) As a result of the hearing, the commissioner may also enter an order suspending or revoking the license of a licensee or may place the licensee on probation if the commissioner determines that the licensee has committed any of the unlawful acts specified in section 35-36-313 or that the licensee has violated this part 3 or section 35-36-104.

(10)(a) If a person against whom an order, as specified in subsection (8)(c) of this section, is made and issued fails, neglects, or refuses to obey the order within the time specified in the order, the commissioner may issue a further order to that person directing the person to show cause why the person’s license should not be suspended or revoked for failure to comply with the order.

(b) If the commissioner issues an order to show cause pursuant to subsection (10)(a) of this section, a copy of the order to show cause, together with a notice of the time and place of the hearing on the order to show cause, shall be served personally or by mail upon the person involved. Service shall be made at least ten days before the hearing, which shall be held in the city or town in which the business location of the licensee is situated or at any convenient place designated by the commissioner.

(c) The commissioner shall conduct the hearing pursuant to section 24-4-105 and thereafter shall enter in the commissioner’s office an order and decision specifying the facts established at the hearing and dismissing the order to show cause, directing the suspension or revocation of the license held by the licensee, or making such other conditional or probationary orders as may be proper. The commissioner shall cause a copy of the order and decision to be furnished to the licensee.

(d) Nothing in this section limits the power of the commissioner to revoke or suspend a license when satisfied of the existence of any of the facts specified in section 35-36-313.

(11) Whenever the absence of records or other circumstances makes it impossible or unreasonable for the commissioner to ascertain the names and addresses of all persons specified in subsection (6) of this section, the commissioner, after exercising due diligence and making a reasonable inquiry to secure the information from all reasonable and available sources, is not liable or responsible for the claims or the handling of claims that may subsequently appear or be discovered. After ascertaining all claims, assessments, and statements in the manner set forth in subsection (6) of this section, the commissioner may then demand payment on the bond or irrevocable letter of credit on behalf of those claimants whose claims have been determined by the commissioner as valid and, in the instance of a bond, may settle or compromise the claims with the surety company on the bond and execute and deliver a release and discharge of the bond involved. Upon the refusal of the surety company to pay the demand, the commissioner may bring an action on the bond on behalf of the producer, dealer, small-volume dealer, or owner.

(12) For the purpose of this section, a transaction is deemed to have occurred:

(a) On the date that possession of farm products is transferred by a claimant; or

(b) On delayed payment transactions, on the contractual date of payment, or, if there is no contractual date of payment, thirty days following the transfer of title.

(13) The commissioner has discretion to close from public inspection complaints of record made to the commissioner and the results of the commissioner’s investigations during the investigatory period and until dismissed or until notice of hearing and charges is served on a licensee, unless otherwise provided by court order.”

Colo. Rev. Stat. § 35-36-305 (2024)

Delaware

License Required

“It shall be unlawful for any dealer in agricultural products to operate and conduct a business without first having obtained a license as provided in this chapter. The Department shall publish annually a list of licensed dealers under this chapter.”

Del. Code Ann. tit. 3 § 2502 (2024)

Application Process

“Every dealer in agricultural products proposing to transact business with producers and/or auction markets in this State shall file a written application for a license … The application shall be on a form furnished by the Department and shall contain the following information along with such other information as the Department shall require: (1) The name and address of the applicant and that of its local agents, if any, and the location of its principal place of business; (2) the kinds of agricultural products the applicant proposes to handle; (3) the type of produce business proposed to be conducted. All licenses shall expire on March 31 of each year.”

Del. Code Ann. tit. 3 § 2503 (2024)

Renewal

“Every dealer in agricultural products proposing to transact business with producers and/or auction markets in this State shall file a written application . . . for the renewal of a license with the Department . . . [a]ll licenses shall expire on March 31 of each year.”

Del. Code Ann. tit. 3 § 2503 (2024)

“Upon proof of payment of the renewal premium continuing the bond required by this chapter in full force and effect, or proof that the applicant meets 1 of the exceptions to the bond requirement set forth in § 2504 hereof, and upon the payment of a fee of $25 on or before the expiration date of any license issued under this chapter, the applicant shall be entitled to a renewal of license for another year.”

Del. Code Ann. tit. 3 § 2506 (2024)

Fees

“All applications shall be accompanied by a license fee of $25 and a good and sufficient bond in the minimum sum of $25,000. In any event, the bond shall be equal to or greater than the maximum amount of gross business done in this State the previous calendar year, but in no event shall the amount of bond required exceed $50,000. After a hearing on any complaint against a licensee, a maximum bond of $100,000 may be required at the discretion of the Secretary. In lieu of the bond, applicants may deposit with the Secretary, United States government securities, irrevocable letters of credit, or appropriate certificate of deposit, satisfactory to the Secretary, to which every producer and/or auction market with whom the licensee does business has recourse on a claim filed in writing with the Department of Agriculture. In lieu of bond Delaware brokers may submit evidence satisfactory to the Secretary that they have net assets in the State with value equal to or exceeding the bonding requirements of this section.”

Del. Code Ann. tit. 3 § 2504 (2024)

Posting

N/A

Refusal, Suspension, Revocation

“(a) The Department may refuse to grant a license or may revoke any license already granted, as the case may be, when it is satisfied of the existence of any of the following causes:

(1) The dealer has suffered a money judgment to be entered against the dealer upon which execution has been returned unsatisfied;

(2) The dealer has failed promptly and properly to account and to pay for agricultural products;

(3) The dealer has made a false or misleading statement as to market conditions or the service rendered, if any, with the intent to defraud;

(4) The dealer has perpetrated a fraud or engaged in deceit in procuring the license;

(5) The dealer has engaged in any fraudulent or deceitful practices in dealings with producers.”

Del. Code Ann. tit. 3 § 2510(a) (2024)

Contesting License Refusal and Hearing

“(b) Before any license is refused or revoked, the Department or its authorized agents shall give the applicant or licensee at least 20 days’ notice of the time and place of hearing on refusal or revocation of a license. At the time and place of hearing, the Department or its authorized agents shall receive evidence, administer oaths, examine witnesses and hear testimony and shall file an order either dismissing the proceeding or refusing or revoking the license.”

Del. Code Ann. tit. 3 § 2510(b) (2024)

Florida

License Required

“It shall be unlawful for any dealer in agricultural products who comes within the terms of this law to engage in such business in this state without a state license issued by the department.”

Fla. Stat. § 604.17 (2024)

Application Process

“Every dealer in agricultural products desiring to transact business within the state directly with a Florida producer, a producer’s agent or representative, or a negotiating broker shall, prior to transacting any business as such, file an application for such license with the department. The license shall be renewed annually on its anniversary date. The application shall be on a form furnished by the department and, together with such other information as the department shall require, shall state:

(1) The kind or kinds of agricultural products the applicant proposes to handle.

(2) The full name or title of the person, partnership, corporation, or other business entity and the name and mailing address of each owner, partner, officer, or managing agent.

(3) The names of buyers or other local agents of the applicant, if any.

(4) The cities and towns within which places of business of the applicant will be located, together with the street or mailing address of each.

(5) The federal employer’s identification number of the applicant, if any.

(6) The primary mailing address and physical address for each place of business. A dealer in agricultural products must have on file with the department the address of the dealer’s primary place of business prior to engaging in business as a dealer in agricultural products in this state. Prior to changing the address of the primary place of business, the dealer must notify the department of the address of the new primary place of business. All documents relating to the provisions of ss. 604.15-604.34 and chapter 120 shall be served to the last address of record; to a corporation’s registered agent or the registered agent’s substitute; in the absence of a registered agent, to an owner, officer, partner, employee, or managing agent of the business entity; or as designated by the applicant in the applicant’s application.

(7) The dollar amount of business done by a renewal applicant with Florida producers and their agents or representatives during the month in which the maximum dollar amount of agricultural products was purchased or handled as a dealer in agricultural products or the dollar amount of business estimated to be done by a first-time applicant with Florida producers and their agents or representatives during the month in which the estimated maximum dollar amount of agricultural products will be purchased or handled as a dealer in agricultural products.”

Fla. Stat. § 604.18 (2024)

“ … shall issue to an applicant, upon the payment of required fees and the execution and delivery of a bond or certificate of deposit . . . a state license entitling the applicant to conduct business as a dealer in agricultural products for a 1-year period to coincide with the effective period of the bond or certificate of deposit furnished by the applicant.”

Fla. Stat. § 604.19 (2024)

Renewal

” … The license shall be renewed annually on its anniversary date.”

Fla. Stat. § 604.18 (2024)

Fees

N/A

Posting

N/A

Refusal, Suspension, Revocation

“(1) The department may decline to grant a license or may suspend or revoke a license already granted if the applicant or licensee has:

(a) Suffered a monetary judgment entered against the applicant or licensee upon which execution has been returned unsatisfied;

(b) Made false charges for handling or services rendered;(c) Failed to account promptly and properly or to make settlements with any producer;

(d) Made any false statement or statements as to condition, quality, or quantity of goods received or held for sale when the true condition, quality, or quantity could have been ascertained by reasonable inspection;

(e) Made any false or misleading statement or statements as to market conditions or service rendered;

(f) Been guilty of a fraud in the attempt to procure, or the procurement of, a license;

(g) Directly or indirectly sold agricultural products received on consignment or on a net return basis for her or his own account, without prior authority from the producer consigning the same, or without notifying such producer;

(h) Employed in a responsible position a person, or an officer of a corporation, who has failed to fully comply with an order of the department at any time within 1 year after issuance;

(i) Violated any statute or rule relating to the purchase or sale of any agricultural product, whether or not such transaction is subject to the provisions of this chapter; or

(j) Failed to submit to the department an application, appropriate license fees, and an acceptable surety bond or certificate of deposit.

(2) If a licensee fails or refuses to comply in full with an order of the department, her or his license may be suspended or revoked, in which case she or he shall not be eligible for license for a period of 1 year or until she or he has fully complied with the order of the department.

(3) No person, or officer of a corporation, whose license has been suspended or revoked for failure to comply with an order of the department may hold a responsible position with a licensee for a period of 1 year or until the order of the department has been fully complied with.”

Fla. Stat. § 604.25 (2024)

“During the 1-year period covered by a license, if the supporting surety bond or certificate of deposit is canceled for any reason, the license shall automatically expire on the date the surety bond or certificate of deposit terminates, unless an acceptable replacement is in effect before the date of termination so that continual coverage occurs for the remaining period of the license.”

Fla. Stat. § 604.19 (2024)

Contesting License Refusal and Hearing

N/A

Georgia

License Required

“It shall be unlawful for any dealer in grain who comes within the terms of this article to engage in such business in this state without a state license issued by the Commissioner.”

Ga. Code Ann. § 2-9-31 (2024)

Application Process

“(a) Every grain dealer desiring to transact business in this state shall file an application for a license with the Commissioner. The application shall be on a form furnished by the Commissioner and, together with such other information as the Commissioner shall require, shall state:

(1) The name of the business;

(2) The business address of the applicant;

(3) The complete telephone number of the applicant;

(4) The type of ownership, whether individual, partnership, corporation, or other;

(5) The name of the owner or, if a partnership or corporation, the name of the partners or stockholders;

(6) The names of the certified public weighers;

(7) The name of the manager; and

(8) The dollar value of business transacted from producers for the highest month during the preceding calendar year.

(b)

(1) Each applicant for a license or renewal shall furnish with his application a current financial statement which shall include:

(A) A balance sheet;

(B) A profit and loss statement of income;

(D) A statement of changes in financial position.

(2) The chief executive officer for the business shall certify under penalties of perjury that the statements as prepared accurately reflect the financial condition of the business as of the date named and fairly represent the results of operations for the period named.

(3) Except as otherwise provided in this paragraph, each applicant shall have the financial statements required in paragraph (1) of this subsection audited by an independent certified public accountant. Alternatively, financial statements audited or reviewed by an independent public accountant will be accepted with the understanding that the applicant will be subject to an additional on-site examination by the Commissioner and to an audit by the Commissioner. Audits and reviews by independent certified public accountants and independent public accountants specified in this Code section shall be made in accordance with standards established by the American Institute of Certified Public Accountants. The accountant’s certification, assurances, opinion, comments, and notes on such statements, if any, shall be furnished along with the statements. Applicants who cannot immediately meet these requirements may apply to the Commissioner for a temporary waiver of this provision. The Commissioner may grant such waiver for a temporary period not to exceed 180 days if the applicants can furnish evidence of good and substantial reasons therefor. This paragraph shall not be applicable to any applicant who maintains a bond in the maximum amount required by subsection (a) of Code Section 2-9-34.”

Ga. Code Ann. § 2-9-32 (2024)

“Unless the Commissioner refuses the application on one or more of the grounds provided in Code Section 2-9-36, he or she shall issue to an applicant, upon the execution and delivery of a bond as provided in Code Section 2-9-34, a state license entitling the applicant to conduct business as a dealer in grain …”

Ga. Code Ann. § 2-9-33 (2024)

Renewal

” … All such licenses shall be renewed annually on or before June 30. Any license which is not renewed on or before such date shall expire on June 30 …”

Ga. Code Ann. § 2-9-33 (2024)

Fees

“… A fee in an amount fixed by rule or regulation of the Commissioner at not less than $100.00 nor more than $150.00 per annum shall be charged for such license … Any fees collected pursuant to this Code section shall be retained pursuant to the provisions of Code Section 45-12-92.1.”

Ga. Code Ann. § 2-9-33 (2024)

“(a) Before any license is issued, the applicant shall make and deliver to the Commissioner a surety bond in the amount of 20 percent of the average of the highest dollar volume of grain purchases from producers made in any single month for each of the three preceding calendar years or such shorter period of years as the applicant has done business as a grain dealer, provided that the minimum amount of such bond shall be $20,000.00 and the maximum amount of such bond shall be $300,000.00. If a licensed grain dealer operates his or her grain-dealing activities at more than one physical location, he or she shall furnish a surety bond for each location of grain-dealing activities, each bond to be computed as stated in this Code section and each bond to be subject to the minimum and maximum amounts stated in this Code section. The bonds shall be executed by a surety corporation authorized to transact business in this state and approved by the Commissioner. Any and all bond applications shall be accompanied by a certificate of “good standing” issued by the Commissioner of Insurance. If any company issuing a bond shall be removed from doing business in this state, it shall be the duty of the Commissioner of Insurance to notify the Commissioner of Agriculture within 30 days. Such bonds shall be upon forms prescribed by the Commissioner and shall be conditioned to secure the faithful accounting for and payment to the producers or their agents or representatives of the proceeds of all grain handled or sold by such dealer. Whenever the Commissioner shall determine that a previously approved bond has for any cause become insufficient, the Commissioner may require an additional bond or bonds to be given, conforming with the requirements of this Code section. Unless the additional bond or bonds are given within the time fixed by written demand therefor, or if the bond of a dealer is canceled, the license of such person shall be immediately revoked by operation of law without notice or hearing.”

Ga. Code Ann. § 2-9-34(a) (2024)

Posting

“The Commissioner may publish in print or electronically the names and locations of licensed grain dealers and the names and locations of those operations certifying that payment will be made on a cash or certified check basis.”

Ga. Code Ann. § 2-9-42.1 (2024)

Refusal, Suspension, Revocation

“The Commissioner may decline to grant a license or may suspend or revoke a license already granted if he is satisfied that the applicant or licensee has:

(1) Suffered a money judgment to be entered against him upon which execution has been returned unsatisfied;

(2) Made false charges for handling or services rendered;

(3) Failed to account promptly and properly or to make settlements with any producer;

(4) Made any false statement or statements as to the condition, quality, or quantity of grain received or held for sale, when he could have ascertained the true condition, quality, or quantity by reasonable inspection;

(5) Made any false or misleading statement or statements as to market conditions or service rendered;

(6) Been guilty of a fraud in the attempt to procure or in the procurement of a license;

(7) Directly or indirectly sold grain received on consignment or on a net return basis for his own account, without prior authority from the producer consigning the same or without notifying such producer; or

(8) Through any other action, violated this article.”

Ga. Code Ann. § 2-9-36 (2024)

“(c) If the surety bond or cash bond of a licensed grain dealer is canceled, the license of such grain dealer shall immediately be revoked by operation of law without notice or hearing.”

Ga. Code Ann. § 2-9-34(c) (2024)

Contesting License Refusal and Hearing

“Before the Commissioner refuses or revokes any license, he shall give the applicant or licensee ten days’ notice, by registered or certified mail or statutory overnight delivery, of a time and place of hearing. At such hearing the applicant or licensee shall be privileged to appear in person or by or with counsel and to produce witnesses. If the Commissioner finds the applicant or licensee to be in violation of this article, the Commissioner may refuse, suspend, or revoke such license. He shall give immediate notice of his action to the applicant or licensee.”

Ga. Code Ann. § 2-9-37 (2024)

Hawaii

License Required

“No person shall act as a commission merchant, dealer, broker, agent, processor, or retail merchant without having obtained a license as prescribed by rules of the department …”

Haw. Rev. Stat. § 145-2 (2024)

Application Process

” … In addition to the general requirements applicable to all classes of applications as prescribed by rule, the following requirements shall apply to each class of application noted:

(1) Commission merchants and brokers: Each application shall include a schedule of commissions and charges for services, and the designated commissions and charges shall not be changed or varied for the license period except by written contract between the parties. In addition, each application shall be accompanied by the surety bond required by section 145-4.

(2) Agents: Each application shall include the name and address of each commission merchant, dealer, or broker represented or sought to be represented by the agent, the written indorsement or nomination of the commission merchant, dealer, or broker, and such additional information as the department may consider proper or necessary. The department shall thereupon issue to the applicant a license entitling the applicant to conduct the business described in the application at the place named in the application for a year from the date thereof, or until the same is revoked for cause; provided that the license of an agent shall expire upon the date of expiration of the license of the principal for whom the agent acts. The department may also issue to each agent a card or cards which shall bear the signature of the agent, separate cards being required for each principal. Any agent shall show the card or cards upon the request of any interested person. Any agent who displays a void or expired license card shall be punished as provided in section 145-12 …”

Haw. Rev. Stat. § 145-2 (2024)

Renewal

” … Should any commission merchant, dealer, broker, agent, processor, or retail merchant refuse, fail, or neglect to apply for the renewal of a preexisting license within thirty days after the expiration thereof, a penalty of forty per cent shall apply to and be added to the original fee as prescribed by the department, and shall be paid by the applicant before the renewal license may be issued …”

Haw. Rev. Stat. § 145-2 (2024)

Fees

” … For filing the application for license, each applicant shall pay a fee as prescribed by the department … Any person who has applied for and obtained a license within the classification of commission merchant, in the manner and upon payment of the fee set forth, may apply for and secure a license in the other classifications without payment of further fee, and upon further complying with those provisions of this part regulating the licensing of the other particular classification involved. All licenses held by any licensee under this section shall automatically expire on the expiration date for the particular license for which the license fee was paid.”

Haw. Rev. Stat. § 145-2 (2024)

Posting

” … The department may also issue to each agent a card or cards which shall bear the signature of the agent, separate cards being required for each principal. Any agent shall show the card or cards upon the request of any interested person. Any agent who displays a void or expired license card shall be punished as provided in section 145-12 …”

Haw. Rev. Stat. § 145-2 (2024)

Refusal, Suspension, Revocation

” … Fraud or misrepresentation in making any application shall ipso facto work a revocation of any license granted thereunder. All indicia of the possession of a license shall be at all times the property of the State and each licensee shall be entitled to the possession thereof only for the duration of the license …”

Haw. Rev. Stat. § 145-2 (2024)

“(a) The department may, after notice and opportunity for hearing, revoke or suspend any license issued under this chapter for any violation of this chapter.

(b) The department may, after notice and opportunity for hearing, fine any person who violates this chapter or any rule adopted under this chapter, not more than $5,000 for each separate offense. Each day or instance of violation shall constitute a separate offense. Any action taken to impose or collect the penalty provided for in this subsection shall be considered a civil action.”

Haw. Rev. Stat. § 145-10 (2024)

Contesting License Refusal and Hearing

N/A

Idaho

License Required

“(1) A person shall not engage in the business of a commodity dealer in this state without having obtained a license issued by the department.”

Idaho Code Ann. § 69-503(1) (2024)

Application Process

“(3) An application for a license to engage in business as a commodity dealer shall be filed with the department and shall be on a form prescribed by the department. A separate license is required for each location at which records are maintained for transactions of the commodity dealer.

(4) A license application shall include the following:

(a) The name of the applicant;

(b) The names of the officers and directors if the applicant is a corporation;

(d) The location of the principal place of business; and

(e) Any other reasonable information the department finds necessary to carry out the provisions and purposes of this chapter.”

Idaho Code Ann. § 69-503(3)-(4) (2024)

“(5) A license applicant shall further provide a sufficient and valid bond as specified in section 69-506, Idaho Code.

(6) A license applicant shall further provide a complete financial statement setting forth the applicant’s assets, liabilities and net worth. This financial statement shall be prepared by an independent certified public accountant or a licensed public accountant according to generally accepted accounting principles. The commodity dealer shall have and maintain current assets equal to or greater than current liabilities. Assets shall be shown at original cost less depreciation. Upon written request filed with the department, the director may allow asset valuations in accordance with a competent appraisal.”

Idaho Code Ann. § 69-503(5)-(6) (2024)

“(8) The department may require additional information or verification regarding the financial resources of the applicant and the applicant’s ability to pay producers for agricultural commodities purchased from them.”

Idaho Code Ann. § 69-503(8) (2024)

“(1) The department shall issue a license when the applicant has filed the application and complied with the terms and conditions of the provisions of this chapter and the rules of the department. The license shall expire on December 31 of each year.”

Idaho Code Ann. § 69-504(1) (2024)

Renewal

“(2) A commodity dealer’s license may be renewed annually by submitting all necessary licensing materials required by the provisions of this chapter. This material shall be received by the department before December 31 of each year.

(3) A commodity dealer’s license which has expired may be reinstated by the department upon receipt of all necessary licensing materials required by the provisions of this chapter and a reinstatement fee in the amount of five hundred dollars ($500); providing, that this material is filed within thirty (30) days from the date of expiration of the commodity dealer’s license. At the end of the thirty (30) day reinstatement period, a commodity dealer’s license shall terminate. All license applications received after the thirty (30) day reinstatement period shall be considered original applications and, after the five hundred dollar ($500) reinstatement fee has been remitted to the department, license fees shall be assessed according to section 69-508(1), Idaho Code.”

Idaho Code Ann. § 69-504(2)-(3) (2024)

Fees

“(1) The department shall assess and collect an annual fee for each commodity dealer’s license on an original application according to the following schedule:

(a) For a class 1 license the fee shall be three hundred sixty dollars ($360).

(b) For a class 2 license the fee shall be one hundred eighty dollars ($180).

(2) The department shall assess and collect an annual fee for the renewal of each commodity dealer’s license according to the following schedule:

(a) For a class 1 license the renewal fee shall be sixty-five dollars ($65.00).

(b) For a class 2 license the renewal fee shall be thirty-five dollars ($35.00).”

Idaho Code Ann. § 69-508(1)-(2) (2024)

Posting

“The commodity dealer’s license shall be posted in a conspicuous location at his place of business.”

Idaho Code Ann. § 69-509 (2024)

Refusal, Suspension, Revocation

“(5) If an applicant has had a license revoked under the provisions of chapter 2 or 5, title 69, Idaho Code, or the United States warehouse act within the past three (3) years or been convicted of a violation of the provisions of chapter 2 or 5, title 69, Idaho Code, or the United States warehouse act within the past three (3) years, the department may deny a commodity dealer’s license to the applicant.

(6) Any partnership with a partner or any corporation, limited liability company or any association which has an officer, director or majority stockholder owning at least ten percent (10%) of issued stock who has had a license revoked under the provisions of chapter 2 or 5, title 69, Idaho Code, or the United States warehouse act within the previous three (3) years or has been convicted of a felony involving violations of the provisions of chapter 2 or 5, title 69, Idaho Code, or the United States warehouse act, may be denied a commodity dealer’s license by the department.”

Idaho Code Ann. § 69-504(5)-(6) (2024)

“(1) Any person against whose commodity dealer bond a claim has been ordered collected or has actually been collected shall not be licensed by the department for a period of three (3) years from the date of such order or collection. License denial may be waived if the person can show to the satisfaction of the director that full settlement of all claims against the bond has been made. A change in a person’s business name shall not absolve any unsettled claim against that person’s prior bond.

(2) The director shall, after a public hearing, have the right to deny or refuse to issue a license or renewal thereof to an applicant when it is determined that public interest is best served by that denial or refusal.”

Idaho Code Ann. § 69-519(1)-(2) (2024)

“The director may, after opportunity for hearing has been afforded to the licensee concerned, suspend or revoke any license issued to any commodity dealer under the provisions of this chapter for any violation of or failure to comply with any provisions of this chapter or the rules and regulations made hereunder. Pending investigation, the director whenever he deems necessary may temporarily suspend a license without a hearing.”

Idaho Code Ann. § 69-507 (2024)

Contesting License Refusal and Hearing

“(3) Upon refusal or denial of a license pursuant to subsection (2) of this section, an applicant may reapply for a license or renewal after a period of ninety (90) days at which time a new hearing will be held to review the application.

(4) The applicant shall have the right of appeal on any decision to refuse or deny a license under subsection (2) of this section to a court of competent jurisdiction.”

Idaho Code Ann. § 69-519(3)-(4) (2024)

Illinois

License Required

“Except as provided in subsection (e), a person may not engage in the business of buying grain from producers, or storing grain for compensation, in the State of Illinois without a license issued by the Department, or in the case of a federal warehouseman, by the United States government.”

240 Ill. Comp. Stat. § 40/5-5(a) (2024)

“The Department shall issue, amend, or renew a license if the Department is satisfied that the applicant or licensee meets the standards and requirements of this Section. The standards and requirements of subsections (a) and (b) of this Section must be observed and complied with at all times during the term of the license.

(a) General requirements.

(1) The applicant or licensee must have a good business reputation, have not been involved in improper manipulation of books and records or other improper business practices, and have the qualifications and background essential for the conduct of the business of a licensee. The Department must be satisfied as to the business reputation, background, and qualifications of the management and principal officers of the applicant or licensee. The Department may obtain criminal histories of management and principal officers of the applicant or licensee.

(2) The applicant or licensee must maintain a permanent business location in the State of Illinois. Each location where the licensee is transacting business shall remain open from at least one-half hour before the daily opening to at least one-half hour after the daily closing of the Chicago Board of Trade, unless otherwise approved by the Department.

(3) The applicant or licensee must have insurance on all grain in its possession or custody as required in this Code.

(4) The applicant or licensee shall at all times keep sufficiently detailed books and records to reflect compliance with all requirements of this Code. The Department may require that certain records located outside the State of Illinois, if any, be brought to a specified location in Illinois for review by the Department.

(5) The applicant or licensee and each of its officers, directors, partners, and managers must not have been found guilty of a criminal violation of this Code, any of its predecessor statutes, or any similar or related statute or law of the United States or any other state or jurisdiction within 10 years of the date of application for the issuance or renewal of a license.

(6) The applicant or licensee and each of its officers, directors, managers, and partners, that at any one time have been a licensee under this Code or any of its predecessor statutes, or licensed under any similar or related statute or law of the United States or any other state or jurisdiction, must not have had its license terminated or revoked by the Department, by the United States, or by any other state or jurisdiction, within 2 years of the date of application for the issuance or renewal of a license leaving unsatisfied indebtedness to claimants.

(7) The applicant or licensee and each of its officers, directors, managers, and partners must not have been an officer, director, manager, or partner of a former licensee under this Code or any of its predecessor statutes, or of a business formerly licensed under any similar or related statute or law of the United States or any other state or jurisdiction, that had its license terminated or revoked by the Department, by the United States, or by any other state or jurisdiction, within 2 years of the date of application for the issuance or renewal of a license, leaving unsatisfied indebtedness to claimants, unless the applicant or licensee makes a sufficient showing to the Department that the applicable person or related party was not materially and substantially involved as a principal in the business that had its license terminated or revoked. An interim or temporary manager that is employed by a licensee to reorganize the licensee or to manage the licensee until its business is sold, transferred, or liquidated is not in violation of this subsection (7) solely because of that employment as an interim or temporary manager.

(b) Financial requirements.

(1) The applicant or licensee’s financial statement must show a current ratio of the total adjusted current assets to the total adjusted current liabilities of at least one to one.

(A) Adjusted current assets shall be calculated by deducting from the stated current assets shown on the balance sheet submitted by the applicant or licensee any current asset, as calculated in item (B) of this subdivision (1), resulting from notes receivable from related persons, accounts receivable from related persons, stock subscriptions receivable, and any other related person receivables.

(B) A disallowed current asset shall be netted against any related liability and the net result, if an asset, shall be subtracted from the current assets.

(2) The applicant or licensee’s financial statement and balance sheet must show an adjusted debt to adjusted equity ratio of not more than 3 to one.

(A) Adjusted debt shall be calculated by totaling current and long-term liabilities and reducing the total liabilities, up to the amount of current liabilities, by the liquid assets appearing in the current asset section of the balance sheet submitted by the applicant or licensee. For the purposes of this Section, liquid assets include but are not limited to cash, depository accounts, direct obligations of the U.S. Government, marketable securities, grain assets, balances in margin accounts, and tax refunds.

(B) Adjusted equity shall be calculated by deducting from the stated net worth shown on the balance sheet submitted by the applicant or licensee any asset, as calculated in item (C) of this subdivision (2), resulting from notes receivable from related persons, accounts receivable from related persons, stock subscriptions receivable, or any other related person receivables.

(C) A disallowed asset shall be netted against any related liability and the net result, if an asset, shall be subtracted from the stated net worth, or if a liability it shall remain a liability.

(3) An applicant or licensee must have an adjusted equity of at least $50,000 as determined by the method specified in item (b)(2) of this Section. Beginning with the first fiscal year of a licensee ending after 2004, the adjusted equity, as defined by the method specified in item (b)(2) of this Section, shall be increased by $10,000 per fiscal year until the adjusted equity of an applicant or licensee is at least $100,000.

(4) For the purposes of this Section, notes receivable from related persons, accounts receivable from related persons, and any other related person receivables are not a disallowed asset if the related person is also a licensee and meets all of the financial requirements of this Code.

(5) An applicant for a new license shall not be permitted to collateralize the requirements of items (b)(1) and (b)(3) of this Section in order to satisfy the requirements for a new license.”

240 Ill. Comp. Stat. § 40/5-25 (2024)

“(a) Each licensee shall have adequate property insurance covering grain in its possession or custody and adequate liability, property, theft, hazard, and workers’ compensation insurance.

(1) Every insurance policy shall contain a provision that it will not be cancelled by the principal or the insurance company except on 60 days prior written notice to the Director and the principal insured. Cancellation of the policy does not affect the liability accrued or that may accrue under the policy before the expiration of the 60 days. The notice shall contain the termination date.

(2) Each licensee shall keep a general insurance account showing the policy number, issuing company, amount, binding date, and expiration date of insurance coverage and the property covered by insurance.

(3) In reference to a warehouseman, notwithstanding any provision to the contrary contained in the warehouse receipts involved, a warehouseman is not obligated to provide property insurance on Commodity Credit Corporation grain (“CCC-owned grain”). The warehouseman, however, shall continue to carry the insurance required on loan grain that becomes CCC-owned grain until the date stated in a written notice from CCC or its agent instructing the warehouseman to cancel the insurance on the grain as of that date. If CCC-owned grain is not covered by property insurance, recovery by the Commodity Credit Corporation from the Fund shall be reduced by the amount of property insurance proceeds that would have been available to cover any loss to CCC-owned grain had the CCC-owned grain been covered by property insurance.

(b) A licensee shall immediately notify the Department when there is a change of management or cessation of operations or change in fiscal year end.

(c) All grain trades, grain merchandising transactions, grain origination plans and programs, and transactions or arrangements that represent or reflect rights and obligations in grain must be clearly identified and disclosed in the books and records of the licensee, for audit and examination purposes.”

240 Ill. Comp. Stat. § 40/10-5 (2024)

“(a) Long and short market position.

(1) Grain dealers shall at all times maintain an accurate and current long and short market position record for each grain commodity. The position record shall at a minimum contain the net position of all grain owned, wherever located, grain purchased and sold, and any grain option contract purchased or sold.

(2) Grain dealers, except grain dealers regularly and continuously reporting to the Commodity Futures Trading Commission or grain dealers who have obtained the permission of the Department to have different open long or short market positions, may maintain an open position in the grain commodity of which the grain dealer buys the greatest number of bushels per fiscal year not to exceed one bushel for each $10 of adjusted equity at fiscal year end up to a maximum open position of 50,000 bushels and one-half that number of bushels up to 25,000 bushels for all other grain commodities that the grain dealer buys. A grain dealer, however, may maintain an open position of up to 5,000 bushels for each grain commodity the grain dealer buys.

(b) The license issued by the Department to a grain dealer shall be posted in the principal office of the licensee in this State. A certificate shall be posted in each location where the licensee engages in business as a grain dealer. In the case of a licensee operating a truck or tractor trailer unit for the purpose of purchasing grain, the licensee shall have a certificate carried in each truck or tractor trailer unit used in connection with the licensee’s grain dealer business.

(c) The licensee must have at all times sufficient financial resources to pay producers on demand for grain purchased from them.

(d) A licensee that is solely a grain dealer shall on a daily basis maintain an accurate and current daily grain transaction report.

(e) A licensee that is both a grain dealer and a warehouseman shall at all times maintain an accurate and current daily position record.

(f) In the case of a change of ownership of a grain dealer, the obligations of a grain dealer do not cease until the grain dealer has surrendered all unused price later contracts to the Department and the successor has executed a successor’s agreement that is acceptable to the Department, or the successor has otherwise provided for the grain obligations of its predecessor in a manner that is acceptable to the Department.

(g) If a grain dealer proposes to cease doing business as a grain dealer and there is no successor, it is the duty of the grain dealer to surrender all unused price later contracts to the Department, together with an affidavit accounting for all grain dealer obligations setting forth the arrangements made with producers for final disposition of the grain dealer obligations and indicating the procedure for payment in full of all outstanding grain obligations. It is the duty of the Department to give notice by publication that a grain dealer has ceased doing business without a successor. After payment in full of all outstanding grain obligations, it is the duty of the grain dealer to surrender its license.”

240 Ill. Comp. Stat. § 40/10-10 (2024)

Application Process

“(b) An application for a license shall be filed with the Department, shall be in a form prescribed by the Department, and shall set forth the name of the applicant, the directors and officers if the applicant is a corporation, the partners if the applicant is a partnership, the members of the governing body and all persons with management or supervisory authority if the applicant is an entity other than a corporation or partnership, the location of the principal office or place of business of the applicant, the location of the principal office or place of business of the applicant in Illinois, and the location or locations in Illinois at which the applicant proposes to engage in business as a licensee, the fiscal year of the applicant, the kind of grain that the applicant proposes to buy, handle, or store, the type of business that the applicant proposes to conduct, and additional information that the Department may require by rule.

…

(d) If an applicant has been engaged in business as a grain dealer for one year or more, the application shall state the aggregate dollar amount paid to producers for grain during the applicant’s last completed fiscal year. If the applicant has been engaged in business for less than one year or has not engaged in the business of buying grain from producers, the application shall state the estimated aggregate dollar amount to be paid by the applicant to producers for grain purchased from producers during the applicant’s first fiscal year.

(e) The following persons are exempt from being licensed as a grain dealer or incidental grain dealer:

(1) A person purchasing grain from producers only for resale as agricultural seed.

(2) A producer purchasing grain from producers only for its own use as seed or feed.”

240 Ill. Comp. Stat. § 40/5-5(b), (d)-(e) (2024)

“(a) Applications for a new license to operate as a Class I warehouseman or grain dealer shall be accompanied by each of the following:

(1) A financial statement made within 90 days after the applicant’s fiscal year end and prepared in conformity with generally accepted accounting principles following an examination conducted in accordance with generally accepted auditing standards that has attached the unqualified opinion, or a qualified opinion if the qualification, in the sole discretion of the Department, does not unduly diminish the financial stability of the licensee or applicant, of an independent certified public accountant licensed under Illinois law or an entity permitted to engage in the practice of public accounting under item (b)(3) of Section 14 of the Illinois Public Accounting Act.

(A) If the applicant has been engaged in business prior to the application, the financial statement shall set forth the financial position and results in operations for the most recent fiscal year of the applicant. The financial statement shall consist of a balance sheet, statement of income, statement of retained earnings, statement of cash flows, notes to financial statements, and other information as required by the Department.

(B) If the applicant has not been engaged in business prior to the application, the financial statement shall consist of a balance sheet, notes to financial statements, and other information as required by the Department.

…

(b) Applications for a new license to operate as a Class II warehouseman or incidental grain dealer shall be accompanied by:

(1) A financial statement prepared in accordance with the requirements of item (a)(1) of Section 5-10 or, instead, a financial statement made within 90 days of the date of the application prepared or certified by an independent accountant and verified under oath by the applicant. The financial statement shall set forth the balance sheet and other information with respect to the financial resources of the applicant that the Department may require. If the applicant has been engaged in business prior to the application, the financial statement shall also set forth a statement of income of the applicant.”

240 Ill. Comp. Stat. § 40/5-10(a)(1), (b)(1) (2024)

Renewal

“(a) The application for renewal of a license shall be filed with the Department annually within 90 days after the licensee’s fiscal year end. The Department may, upon request of the licensee, payment of an extension fee of $100, $50 of which shall be deposited into the General Revenue Fund and the balance of which shall be deposited into the Regulatory Fund, and delivery to the Department of a preliminary financial statement compiled by an independent certified public accountant licensed under Illinois law or an entity permitted to engage in the practice of public accounting under item (b)(3) of Section 14 of the Illinois Public Accounting Act or, in the case of a Class II warehouseman or incidental grain dealer, a preliminary financial statement reviewed by an independent accountant that meets the financial requirements of subsection (b) of Section 5-25, extend, for up to but not exceeding 30 days, the period of time during which the application for renewal of a license may be filed. The Department, however, may provide by rule for reducing the filing period for an application for renewal of a license to no less than 60 days after the licensee’s fiscal year end if the Department determines that an applicant has financial deficiencies, or there are other factors, that would create a substantial risk of failure. The Department must give written notice of the reduced filing period to the licensee at least 60 days before the earlier deadline imposed by the Department to file the application for renewal of a license. Notice is deemed given when mailed by certified mail, return receipt requested, properly addressed and with sufficient postage attached.

(b) The application for renewal shall be accompanied by the financial statement required by Section 5-20.

(c) Failure to meet all of the conditions to renew the license may result in a denial of renewal of the license. The licensee may request an administrative hearing to dispute the denial of renewal, after which the Director shall enter an order either renewing or refusing to renew the license.”

240 Ill. Comp. Stat. § 40/5-15 (2024)

Fees

“(a) Applications for a new license to operate as a Class I warehouseman or grain dealer shall be accompanied by each of the following:

…

(2) An application fee of $200 for each license, $100 of which shall be deposited into the General Revenue Fund and the balance of which shall be deposited into the Regulatory Fund.

(3) A fee for each required certificate. The amount of the fee for each certificate shall be established by rule. Fees shall be deposited into the Regulatory Fund.

(b) Applications for a new license to operate as a Class II warehouseman or incidental grain dealer shall be accompanied by:

…

(2) An application fee of $150 for each license, $100 of which shall be deposited into the General Revenue Fund and the balance of which shall be deposited into the Regulatory Fund.

(3) A fee for each required certificate. The amount of the fee for each certificate shall be established by rule. Fees shall be deposited into the Regulatory Fund.”

240 Ill. Comp. Stat. § 40/5-10(a)(2)-(3), (b)(2)-(3) (2024)

“(a) … The Department may, upon request of the licensee, payment of an extension fee of $100, $50 of which shall be deposited into the General Revenue Fund and the balance of which shall be deposited into the Regulatory Fund, and delivery to the Department of a preliminary financial statement compiled by an independent certified public accountant licensed under Illinois law or an entity permitted to engage in the practice of public accounting under item (b)(3) of Section 14 of the Illinois Public Accounting Act or, in the case of a Class II warehouseman or incidental grain dealer, a preliminary financial statement reviewed by an independent accountant that meets the financial requirements of subsection (b) of Section 5-25, extend, for up to but not exceeding 30 days, the period of time during which the application for renewal of a license may be filed …”

(b) The application for renewal shall be accompanied by the financial statement required by Section 5-20.”

240 Ill. Comp. Stat. § 40/5-15(a)-(b) (2024)

Posting

N/A

Refusal, Suspension, Revocation

“(a) Revocation of a license by the Department constitutes a termination of the license on the earlier of:

(1) the day of the revocation order;

(2) the day that a licensee voluntarily files for bankruptcy under the federal bankruptcy laws; or

(3) the day that an order for relief is entered in reference to a licensee as a consequence of a petition for involuntary bankruptcy filed under the federal bankruptcy laws.

(b) Voluntary surrender of a license by a licensee constitutes a termination of the license on the day the surrender occurs.

(d) Denial of a license renewal by the Department constitutes a termination of the license on the day of the order denying the license renewal.”

240 Ill. Comp. Stat. § 40/5-35 (2024)

“(a) The Director may suspend a license and take possession and control of all grain assets and equity assets (except that the Department may not take possession and control of any equity asset on which there is a valid prior perfected security interest or other valid prior perfected lien without the prior, written permission of the secured party or lien holder) of the suspended licensee if the Department has reason to believe that any of the following has occurred:

(1) A licensee has made a formal declaration of insolvency; failed to apply for license renewal, leaving indebtedness to claimants; or been denied a license renewal, leaving indebtedness to claimants.

(2) A licensee has failed to pay a producer, on demand, for grain purchased from that producer, assuming no bona fide dispute exists with regard to the payment.

(3) A licensee is otherwise unable to financially satisfy claimants in accordance with any applicable statute, rule, or agreement, assuming a bona fide dispute does not exist between the licensee and the claimant.

(4) A licensee has violated any of the other provisions of this Code and the violation, or the pattern of the violations, would create a substantial risk of failure.

(5) A licensee has failed to pay a penalty or post collateral or guarantees by the date ordered by the Director.

(6) A licensee has failed to pay an assessment as required by Section 5-30.

(b) The Director may revoke a license if the Director finds, after an administrative hearing, that any of the grounds for suspension under item (a)(1), (a)(2), (a)(3), (a)(4), (a)(5), or (a)(6) of Section 15-40 have occurred.

(c) When a licensee voluntarily files for bankruptcy under the federal bankruptcy laws, that filing constitutes a revocation of the license of the licensee on the day that the filing occurs.”

240 Ill. Comp. Stat. § 40/15-40(a)-(c) (2024)

Contesting License Refusal and Hearing

(d) When an order for relief is entered in reference to a licensee as a consequence of a petition for involuntary bankruptcy filed under the federal bankruptcy laws, that order constitutes a revocation of the license on the date of that order.

(e) Within 10 days after suspension of a license, an administrative hearing shall be commenced to determine whether the license shall be reinstated or revoked. Whenever an administrative hearing is scheduled, the licensee shall be served with written notice of the date, place, and time of the hearing at least 5 days before the hearing date. The notice may be served by personal service on the licensee or by mailing it by registered or certified mail, return receipt requested, to the licensee’s place of business. The Director may, after a hearing, issue an order either revoking or reinstating the license.

240 Ill. Comp. Stat. § 40/15-40(d)-(e) (2024)

Indiana

License Required

“(a) A person may not operate a warehouse or conduct business as a grain buyer or buyer-warehouse without first having obtained the appropriate license from the agency, nor may a person or entity associated with the person continue to operate a warehouse or conduct business as a grain buyer or buyer-warehouse after the person’s license has been revoked or suspended, except as provided in section 18 of this chapter.

(b) All facilities in Indiana that an applicant for a license uses to store or handle grain must qualify for and obtain a license and be licensed under this chapter before the applicant may operate a warehouse or conduct business as a grain buyer in Indiana. An applicant may not be licensed unless all of the applicant’s facilities qualify for a license under this chapter. An applicant for a license must apply to the agency for a license that covers all facilities operated by the applicant for the storage or handling of grain in Indiana.”

Ind. Code § 26-3-7-4(a)-(b) (2024)

“(b) A person may not represent that the person is licensed under this chapter, and may not use a name or description that conveys the impression that the person is licensed, in a receipt or otherwise, unless the person holds an unsuspended and unrevoked license to conduct the business indicated by the license.”

Ind. Code § 26-3-7-7(b) (2024)

“A person licensed under the warehouse act must also have a valid grain buyer license to do business in Indiana as a grain buyer.”

Ind. Code § 26-3-7-35 (2024)

Application Process

“(a)(3) A grain buyer license may be issued to a person that:

(A) purchases annually at least fifty thousand (50,000) bushels of grain that are not for the sole purpose of feeding the person’s own livestock or poultry;

(B) chooses to obtain a grain buyer’s license; or

(C) offers deferred pricing, delayed payments, or contracts linked to the commodity futures or commodity options market in connection with grain purchases.

…

(b) An applicant shall file with the director a separate application for each license or amendment of a license at the times, on the forms, and containing the information that the director prescribes.

…

(e) A licensee or an applicant for an initial license must have a minimum current asset to current liability ratio of one to one (1:1) or better.

(f) An applicant for an initial license shall submit with the person’s application a review level financial statement or better financial statement that reflects the applicant’s financial situation on a date not more than fifteen (15) months before the date on which the application is submitted. A financial statement submitted under this section must:

(1) be prepared by an independent accountant certified under IC 25-2.1;

(2) comply with generally accepted accounting principles; and

(3) contain:

(A) an income statement;

(B) a balance sheet;

(D) a statement of retained earnings;

(E) an aged accounts receivable listing detailing accounts that are ninety (90) days due, one hundred twenty (120) days due, and more than one hundred twenty (120) days due;

(F) a copy of the daily position record for the end of the licensee’s fiscal year;

(G) the preparer’s notes; and

(H) other information the agency may require.

The director may adopt rules under IC 4-22-2 to allow the agency to accept other substantial supporting documents instead of those listed to determine the financial solvency of the applicant if the director determines that providing the listed documents creates a financial or other hardship on the applicant or licensee.”

Ind. Code §§ 26-3-7-6(a)(3), (b), (e)-(f) (2024)

“(a) The director may issue or amend a license after the director has:

(1) received and approved the required information and documentation; and

(2) determined that:

(A) the facility or facilities covered by the application are suitable for the proper storage or handling of the grain intended to be stored or handled in the facility or facilities; and

(B) the applicant has complied with this chapter and the rules adopted under this chapter.

…

(1) has a good business reputation;

(2) has not been involved in improper manipulation of books and records or other improper business practice;

(3) has the qualifications and background essential for the conduct of the business to be licensed;

(4) employs management and principal officers that have suitable business reputations, background, and qualifications to perform their duties;

(5) has not been found guilty of a crime that would affect the licensee’s ability to conduct business with integrity; and

(6) does not employ an officer, director, partner, or manager that has been found guilty of a crime that would affect the licensee’s ability to conduct business with integrity.”

Ind. Code § 26-3-7-7(a), (c) (2024)

“Upon receipt of an application for a permanent license, the director may issue a temporary license to the applicant for a reasonable time, not to exceed ninety (90) days, as the director deems necessary or advisable to enable the applicant to comply with the further requirements for obtaining a license under this chapter. A temporary license entitles the temporary licensee to the same rights and subjects the temporary licensee to the same duties as if the temporary licensee had a permanent license.”

Ind. Code § 26-3-7-8 (2024)

Renewal

“(a) The agency shall mail by first class mail or send electronically a renewal application, which must include a listing of all the licensee’s facilities, to each licensee before the end of the licensee’s fiscal year. The renewal application form must be completed and returned to the agency not later than ninety (90) days after the end of the licensee’s fiscal year. The licensee must forward, with the renewal application, the following:

(1) Current reviewed level financial statement.

(2) Updated financial profile form supplied by the agency.

(3) Appropriate license fee.

(b) A renewal application must contain the information as required under rules adopted by the agency. The licensee shall receive an annual renewal license application form appropriate to the license issued to the licensee. The annual renewal license application forms are for a:

(1) grain bank;

(2) warehouse;

(3) grain buyer; or

(4) buyer-warehouse.”

Ind. Code § 26-3-7-4.1 (2024)

Fees

“(c)(5) For a grain buyer, including a grain buyer that is also licensed as a warehouse under the warehouse act, one thousand five hundred dollars ($1,500) for the first facility and two hundred fifty dollars ($250) for each additional facility.

The director may prorate the initial application fee for a license that is issued at least thirty (30) days after the anniversary date of the licensee’s business.

(d) Before the anniversary date of the license, the licensee shall pay an annual fee in an amount equal to the amount required under subsection (c). The director may prorate the annual application fee for a license that is modified at least thirty (30) days after the anniversary date of the licensee’s license.”

Ind. Code §§ 26-3-7-6(c)(5)-(d) (2024)

“(a) Each applicant for a license under this chapter shall, as a condition of licensure, file or have on file with the director:

(1) a cash deposit;

(2) an irrevocable letter of credit;

(3) a bond; or

(4) any combination of the above;

as provided in section 10 of this chapter.”

Ind. Code § 26-3-7-9(a) (2024)

Posting

“A licensee shall:

(1) conspicuously display the licensee’s license in the licensee’s main office and at each facility included under the license;

(2) conspicuously display in each operational office the approved schedule of charges for services; and

(3) conspicuously display at each facility all charts and diagrams provided to the facility by the agency.”

Ind. Code § 26-3-7-29 (2024)

Refusal, Suspension, Revocation

“(a) Whenever the director, as a result of an inspection or otherwise, has reasonable cause to believe that a person to which this chapter is or may be applicable:

(1) is conducting business contrary to this chapter or in an unauthorized manner; or

(2) has failed, neglected, or refused to observe or comply with any order, rule, or published policy statement of the agency;

then the director may undertake any one (1) of the actions prescribed by this section.

(b) Upon learning of the possibility that a licensee is acting as described in subsection (a), the director or the director’s designated representative may seek an informal meeting with the licensee. At that meeting, which shall be held at a time and place agreed to by the licensee and the director, the director or the director’s designated representative shall discuss the possible violations and may enter into a consent agreement with the licensee under which the licensee agrees to undertake, or to cease, the activities that were the subject of the meeting. The consent agreement may provide for a time frame within which the licensee must be in compliance.

(c) Upon learning of the possibility that a person is acting as described in subsection (a), the director or the director’s designated representative, except as otherwise provided in this subsection, shall hold a hearing to determine whether a cease and desist order should issue against a licensee or an unlicensed person undertaking activities covered by this chapter. If the director or the director’s designated representative determines that the violation or the prohibited practice is likely to cause immediate insolvency or irreparable harm to depositors, the director or the director’s designated representative, without notice, may issue a temporary cease and desist order requiring the person to cease and desist from that violation or practice. The order shall become effective upon service on the person and shall remain effective and enforceable pending the completion of all administrative proceedings.

(d) Upon a determination, after a hearing held by the director or the director’s designated representative, that a person is acting as described in subsection (a), the director may suspend, revoke, or deny a license. If the director suspends, revokes, or denies a license, the director shall publish notice of the suspension, revocation, or denial as provided in section 17.5 of this chapter.

(e) If the director has reasonable cause to believe that a licensee is acting as described in subsection (a) and determines that immediate action without an opportunity for a hearing is necessary in order to safeguard depositors, the director may suspend a license temporarily without a hearing for a period not to exceed twenty (20) days. When a license is suspended without a hearing, the director or the director’s designated representative shall grant an opportunity for a hearing as soon as possible.”

Ind. Code § 26-3-7-17.1 (2024)

Contesting License Refusal and Hearing

“(a) Whenever the license of a licensee is suspended or revoked, the director shall:

(1) for each facility operated by the licensee, publish a public notice in a newspaper of general circulation that serves the county in which the facility is located; and

(2) cause notice of the suspension or revocation to be posted at the facilities covered by the license.

(b) Whenever an application for licensure under this chapter is denied, the director may:

(1) for each facility operated by the applicant, publish a public notice in a newspaper of general circulation that serves the county in which the facility is located; and

(2) cause notice of the denial to be posted at the applicant’s facilities.

Ind. Code §§ 26-3-7-17.5(a)-(c) (2024)

“(a) When a license is revoked, the licensee shall terminate in the manner prescribed by the director all arrangements covering the grain in the facility covered by the license, but shall be permitted, under the direction and supervision of the director or the director’s designated representative, to deliver grain previously received.

(b) During any suspension of a license, the licensee may, under the direction and supervision of the director or the director’s designated representative, operate the facility, but shall not incur any additional obligations to producers.”

Ind. Code § 26-3-7-18 (2024)

“(a) A licensee or claimant subject to the director’s action may appeal under IC 4-21.5-3 from orders issued by the director under section 16.5 or 17.1 of this chapter.

(b) A licensee or claimant may request an appeal under IC 4-21.5-3 not more than fifteen (15) days after being served with the director’s findings.

(1) an administrative law judge to preside over the appeal; and

(2) an ultimate authority for purposes of the appeal in accordance with IC 4-21.5-3.”

Ind. Code § 26-3-7-16.7 (2024)

Iowa

License Required

“1. A person shall not engage in the business of a grain dealer in this state without having obtained a license issued by the department.”

Iowa Code § 203.3(1) (2025)

Application Process

“2. The type of license required shall be determined as follows:

a. A class 1 license is required if the grain dealer purchases any grain by credit-sale contract, or if the value of grain purchased by the grain dealer from producers during the grain dealer’s previous fiscal year exceeds five hundred thousand dollars. Any other grain dealer may elect to be licensed as a class 1 grain dealer.

b. A class 2 license is required for any grain dealer not holding a class 1 license. A class 2 licensee whose purchases from producers during a fiscal year exceed a limit of five hundred thousand dollars in value shall file within thirty days of the date the limit is reached a complete application for a class 1 license. If a class 1 license is denied, the person immediately shall cease doing business as a grain dealer.

3. An application for a license to engage in business as a grain dealer shall be filed with the department and shall be in a form prescribed by the department. The application shall include the name of the applicant, its principal officers if the applicant is a corporation or the active members of a partnership if the applicant is a partnership and the location of the principal office or place of business of the applicant. A separate license shall be required for each location at which records are maintained for transactions of the grain dealer. The application shall be accompanied by a complete financial statement of the applicant setting forth the assets, liabilities and the net worth of the applicant. The financial statement must be prepared according to generally accepted accounting principles. Assets shall be shown at original cost less depreciation. Upon a written request filed with the department, the department or a designated employee may allow asset valuations in accordance with a competent appraisal. Unpriced contracts shall be shown as a liability and valued at the applicable current market price of grain as of the date the financial statement is prepared.

4. In order to receive and retain a class 1 license the following conditions must be satisfied:

a. The grain dealer shall have and maintain a net worth of at least seventy-five thousand dollars, or maintain a deficiency bond or an irrevocable letter of credit in the amount of two thousand dollars for each one thousand dollars or fraction thereof of net worth deficiency. However, a person shall not be licensed as a class 1 grain dealer if the person has a net worth of less than thirty-seven thousand five hundred dollars.

b. The grain dealer shall submit, as required by the department, a financial statement that is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state. However, the department may accept a qualification in an opinion that is unavoidable by any audit procedure that is permitted under generally accepted accounting principles. An opinion that is qualified because of a limited audit procedure or because the scope of an audit is limited shall not be accepted by the department. The department shall not require that a grain dealer submit more than one such unqualified opinion per year. The grain dealer, except as provided in section 203.15, may elect to submit a financial statement that is accompanied by the report of a certified public accountant licensed in this state that is based upon a review performed by the certified public accountant in lieu of the audited financial statement specified in this paragraph. However, at any time the department may require a financial statement that is accompanied by the report of a certified public accountant licensed in this state that is based upon a review performed by a certified public accountant if the department has good cause. A grain dealer shall submit financial statements to the department in addition to those required in this paragraph if the department determines that it is necessary to verify the grain dealer’s financial status or compliance with this subsection.

c. A grain dealer shall submit a report to the department according to procedures required by the department, if the grain dealer provides a bond based in part on the number of bushels of unpaid grain purchased by the grain dealer, as provided in rules adopted by the department, in order to satisfy the current assets to current liabilities ratio requirement of this section. The report shall contain information required by the department, including the number of bushels of unpaid grain purchased by the grain dealer. The grain dealer shall submit the report not more than once each month. However, the department may require that a grain dealer submit a report on a more frequent basis, if the department has good cause.

d. The grain dealer shall have and maintain current assets equal to at least one hundred percent of current liabilities or provide a bond under the following conditions:

(1) A grain dealer with current assets equal to at least fifty percent of current liabilities shall provide a bond of two thousand dollars for each one thousand dollars or fraction of one thousand dollars of current assets that the grain dealer is lacking to meet the minimum requirement. After the amount of the bond equals one million dollars, the grain dealer may elect to base the remainder of the amount of the bond on the number of bushels of unpaid grain being purchased by the grain dealer, as provided for by rules which shall be adopted by the department. The remaining amount shall equal two thousand dollars for each one thousand dollars of the highest amount of bushels of unpaid grain purchased by the grain dealer during each month.

(2) A grain dealer with current assets equal to less than fifty percent of current liabilities shall provide a bond of two thousand dollars for each one thousand dollars or fraction of one thousand dollars of current assets that the grain dealer is lacking to meet the minimum requirement. However, the bond shall not be used for longer than thirty consecutive days in a twelve-month period.

5. In order to receive and retain a class 2 license the following conditions must be satisfied:

a. The grain dealer shall have and maintain a net worth of at least thirty-seven thousand five hundred dollars, or maintain a deficiency bond or an irrevocable letter of credit in the amount of two thousand dollars for each one thousand dollars or fraction thereof of net deficiency. However, a person shall not be licensed as a class 2 grain dealer if the person has a net worth of less than seventeen thousand five hundred dollars.

b. The grain dealer shall submit, as required by the department, a financial statement that is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state. However, the department may accept a qualification in an opinion that is unavoidable by any audit procedure that is permitted under generally accepted accounting principles. An opinion that is qualified because of a limited audit procedure or because the scope of an audit is limited shall not be accepted by the department. The department shall not require that a grain dealer submit more than one such unqualified opinion per year. The grain dealer may elect, however, to submit a financial statement that is accompanied by the report of a certified public accountant licensed in this state that is based upon a review performed by the certified public accountant in lieu of the audited financial statement specified in this paragraph. However, at any time the department may require a financial statement that is accompanied by the report of a certified public accountant licensed in this state that is based upon a review performed by a certified public accountant if the department has good cause. A grain dealer shall submit financial statements to the department in addition to those required in this paragraph if the department determines that it is necessary to verify the grain dealer’s financial status or compliance with this section.

d. The grain dealer shall have and maintain current assets equal to at least one hundred percent of current liabilities or provide a bond under the following conditions:

6. The department shall adopt rules relating to the form and time of filing of financial statements. The department may require additional information or verification with respect to the financial resources of the applicant and the applicant’s ability to pay producers for grain purchased from them.”

Iowa Code § 203.3(2)-(6) (2025)

“1. a. Upon the filing of an application on a form prescribed by the department and compliance with the terms and conditions of this chapter including rules of the department, the department shall issue the applicant a grain dealer’s license. The license expires at the end of the third calendar month following the close of the grain dealer’s fiscal year …”

Iowa Code § 203.5(1)(a) (2025)

Renewal

” 1. a. … A grain dealer’s license may be renewed annually by filing a renewal application on a form prescribed by the department. An application for renewal must be received by the department on or before the end of the third calendar month following the close of the grain dealer’s fiscal year.”

Iowa Code § 203.5(1)(a) (2025)

“4. A grain dealer license which has expired may be reinstated by the department upon receipt of a proper renewal application, the renewal fee and a reinstatement fee as provided in section 203.6, and any delinquent participation fee or per-bushel fee and penalty as provided in section 203D.3A. The applicant must file the renewal application and pay the fees and penalty to the department within thirty days from the date of expiration of the grain dealer license.”

Iowa Code § 203.5(4) (2025)

Fees

“1. b. The department shall not issue a grain dealer’s license unless the applicant pays all of the following fees:

(1) For the issuance of a license, all of the following:

(a) A license fee imposed under section 203.6.

(b) A participation fee imposed under section 203D.3A, and any delinquent participation fee imposed under a previous license as provided in that section.

(2) For the renewal of a license, all of the following:

(a) A renewal fee imposed under section 203.6.

(b) A participation fee imposed under section 203D.3A, and any delinquent participation fee as provided in that section.”

Iowa Code § 203.5(1)(b) (2025)

“6. a. The department shall refund a fee paid by an applicant to the department under this section if the department does not issue or renew a grain dealer’s license.

b. The department shall prorate a fee paid by an applicant to the department under this section for the issuance or renewal of a license for less than a full year.”

Iowa Code § 203.5(6) (2025)

“The department shall charge the following fees for deposit in the general fund:

1. a. For the issuance or renewal of a license required under section 203.3, and for any inspection of a grain dealer, the fee shall be determined on the basis of all bushels of grain purchased during the grain dealer’s previous fiscal year according to the grain dealer’s financial statement required in section 203.3. The fee shall be calculated according to the following schedule:

(1) If the total number of bushels purchased is thirty-five thousand or less, the license fee is sixty-six dollars and the inspection fee is eighty-three dollars.

(2) If the total number of bushels purchased is more than thirty-five thousand, but not more than two hundred fifty thousand, the license fee is one hundred sixteen dollars and the inspection fee is one hundred twenty-five dollars.

(3) If the total number of bushels purchased is more than two hundred fifty thousand, but not more than five hundred thousand, the license fee is one hundred sixty-six dollars and the inspection fee is one hundred ninety-one dollars.

(4) If the total number of bushels purchased is more than five hundred thousand, but not more than one million, the license fee is two hundred ninety-one dollars and the inspection fee is two hundred forty-nine dollars.

(5) If the total number of bushels purchased is more than one million, but not more than one million eight hundred fifty thousand, the license fee is four hundred ninety-eight dollars and the inspection fee is three hundred seven dollars.

(6) If the total number of bushels purchased is more than one million eight hundred fifty thousand, but not more than three million two hundred thousand, the license fee is seven hundred six dollars and the inspection fee is three hundred seventy-four dollars.

(7) If the total number of bushels purchased is more than three million two hundred thousand, the license fee is nine hundred fifty-five dollars and the inspection fee is four hundred forty dollars.

b. If the applicant did not purchase grain in the applicant’s previous fiscal year, the applicant shall pay the fee specified in paragraph “a”, subparagraph (1). If during the licensee’s fiscal year the number of bushels of grain actually purchased exceeds thirty-five thousand, the licensee shall notify the department and the license and inspection fee shall be adjusted accordingly. Subsequent adjustments shall be made as necessary. An applicant may elect licensing in any category of this subsection. Fees for new licenses issued for less than a full year shall be prorated from the date of application.

2. For an amendment to a license, the fee is ten dollars.

3. For a duplicate license, the fee is five dollars.

4. For reinstatement of a license the fee is fifty dollars.”

Iowa Code § 203.6 (2025)

Posting

“The grain dealer’s license shall be posted in a conspicuous location in the place of business. A grain dealer’s license is not transferable.”

Iowa Code § 203.7 (2025)

Refusal, Suspension, Revocation

“1. The cessation of a grain dealer’s license occurs from any of the following:

a. The revocation of the license by the department as provided in subsection 2.

b. The cancellation of the license as provided in section 203.5.

c. The expiration of the license according to the terms of the license as provided in this chapter, including a rule adopted in accordance with this chapter pursuant to chapter 17A.

2. The department may issue an order to suspend or revoke the license of a grain dealer who violates a provision of this chapter, including a rule adopted in accordance with this chapter pursuant to chapter 17A.”

Iowa Code § 203.10 (2025)

“3. The department may suspend or revoke the license of a grain dealer who discounts the purchase price paid for grain nominally for the participation fee or per-bushel fee as provided in section 203D.3A while that fee is not in effect.”

Iowa Code § 203.5(3) (2025)

“5. The department may cancel a license upon request of the licensee unless a complaint or information is filed against the licensee alleging a violation of a provision of this chapter.”

Iowa Code § 203.5(5) (2025)

“7. The department may deny a license to an applicant if the applicant has had a license issued under this chapter or chapter 203C revoked within the past three years, the applicant has been convicted of a felony involving a violation of this chapter or chapter 203C, or the applicant is owned or controlled by a person who has had a license so revoked or who has been so convicted.

8. The department may deny a license to an applicant if any of the following apply:

a. The applicant has caused liability to the grain depositors and sellers indemnity fund in regard to a license issued under this chapter or chapter 203C, and the liability has not been discharged, settled, or satisfied.

b. The applicant is owned or controlled by a person who has caused liability to the fund through operations under a license issued under this chapter or chapter 203C and the liability has not been discharged, settled, or satisfied.”

Iowa Code § 203.5(7)-(8) (2025)

“4. The department may suspend or revoke the license of a grain dealer for failing to consent to a departmental inspection or cooperate with the department during an inspection as provided in this chapter.”

Iowa Code § 203.9(4) (2025)

Contesting License Refusal and Hearing

“1. Upon the cessation of a grain dealer license by revocation, cancellation, or expiration, any claim for the purchase price of grain against the grain dealer shall be made in writing and filed with the grain dealer and with the issuer of a deficiency bond or of an irrevocable letter of credit and with the department within one hundred twenty days after the date of the cessation. A failure to make this timely claim relieves the issuer and the grain depositors and sellers indemnity fund provided in chapter 203D of all obligations to the claimant.

2. Upon the revocation of a grain dealer license, the department shall cause notice of the revocation to be published once each week for two consecutive weeks in a newspaper of general circulation within the state of Iowa and in a newspaper of general circulation within the county of the grain dealer’s principal place of business when that dealer’s principal place of business is located in the state of Iowa. The notice shall state the name and address of the grain dealer and the effective date of revocation. The notice shall also state that any claims against the grain dealer shall be made in writing and sent by ordinary mail or delivered personally within one hundred twenty days after revocation to the grain dealer, to the issuer of a deficiency bond or of an irrevocable letter of credit, and to the department, and the notice shall state that the failure to make a timely claim does not relieve the grain dealer from liability to the claimant.”

Iowa Code § 203.12 (2025)

Kentucky

License Required

“(1) No person shall be or act as a grain dealer in the Commonwealth without holding a valid grain dealer license issued by the department.

(2) No person shall engage in the business of buying grain from producers for resale, milling, or processing in the Commonwealth without holding a valid grain dealer license issued by the department; provided, however, that no license shall be required in order to buy grain from sellers who are not producers of grain.”

KY. Rev. Stat. Ann. §§ 251.355(1)-(2) (2024)

Application Process

“(1) Application for license as a grain warehouse operator or grain dealer shall:

(a) Set forth the name of the applicant, its principal officer, if a corporation, or the active members of a partnership if a partnership;

(b) Identify the location or locations of the principal office or place of business and the locations in this state at which the applicant proposes to engage in this business;

(c) Be accompanied by a bond as set forth in KRS 251.365. The bond shall run to the Commonwealth of Kentucky and be for the benefit of all persons storing grain in the licensee’s warehouse or selling grain to the licensee; and

(d) Be accompanied by a compilation of financial statements issued by a certified public accountant who has stated in writing whether he or she is independent from ownership and management, or one (1) of the documents identified in KRS 251.370(8), provided, however, a grain dealer license applicant whose total annual purchases in each of the last three (3) years did not exceed fifty thousand (50,000) bushels shall be exempt from the requirement set forth in this subsection.”

KY. Rev. Stat. Ann. §§ 251.440(1) (2024)

Renewal

“(6) Licenses issued by the department shall be valid for a period of time not to exceed one (1) year and shall expire on June 30 each year.”

KY. Rev. Stat. Ann. §§ 251.355(6) (2024)

Fees

“(9) The board, in conjunction with the department, shall promulgate administrative regulations setting forth a schedule of fees for licensed grain dealers. Any changes to the schedule of fees shall be approved by a majority vote of the board. The schedule of fees shall be reviewed by the board at least one (1) time every four (4) years. The annual increase in board-approved license fees shall be limited to five percent (5%) and shall not exceed twenty percent (20%) over any four (4) year period.”

KY. Rev. Stat. Ann. §§ 251.355(9) (2024)

“(1) The department shall not issue or renew a grain dealer or grain warehouse operator license under this chapter until the applicant or licensee has filed with the department satisfactory evidence of financial responsibility.

(2) Evidence of financial responsibility shall:

(a) Consist of:

1. A surety bond, executed by the applicant as principal, and issued by a corporate surety authorized to conduct business in this state;

2. A certificate of deposit issued by a federally insured financial institution in this state;

3. An irrevocable letter of credit issued by a federally insured financial institution in this state;

4. Other security, as deemed acceptable by the department; or

5. Any combination of subparagraphs 1. to 4. of this paragraph, so long as the aggregate value of the evidence meets the requirements of this section;

(b) Be made payable to the board;

(d) In the case of a bond, be conditioned upon the faithful performance of:

1. All obligations of a licensee under the terms of this chapter and any administrative regulations promulgated under it, from the effective date of the bond until the license is revoked, denied, or suspended or the bond is canceled, whichever comes first; and

2. Any obligations the applicant or licensee may contract for with producers, depositors, or other persons placing grains in the applicant’s or licensee’s facilities, from the effective date of the bond and thereafter, regardless of whether or not the applicant’s or licensee’s facility remains the subject of a valid license;

(e) Be filed with and remain in possession of the department until it is released, canceled, or discharged as provided for by the terms of this chapter and any administrative regulations promulgated under it;

(f) Be kept in force at all times while the licensee is operating as a grain warehouse operator or grain dealer. Failure to keep the bond or other security in force shall be cause for revocation of the license, and shall subject the licensee to criminal penalties set forth in KRS 251.990; and

(g) Contain a provision stating that it may not be canceled by any party, except upon ninety (90) days’ notice in writing to the department. A notice of cancellation shall not affect any liability accrued before the expiration of the notice period.”

KY. Rev. Stat. Ann. §§ 251.365(1)-(2) (2024)

KY. Rev. Stat. Ann. §§ 251.365(7)-(8) (2024)

Posting

“The license issued by the department shall be posted in the licensee’s place of business in this state.”

KY. Rev. Stat. Ann. §§ 251.470 (2024)

Refusal, Suspension, Revocation

“(10) The department shall have the authority to suspend or revoke a license if the board or department determines the licensee has violated a provision of this chapter or any administrative regulation promulgated under this chapter.”

KY. Rev. Stat. Ann. § 251.355(10) (2024)

KY. Rev. Stat. Ann. § 251.365(6) (2024)

“(2) The department may deny a license to any applicant or revoke the existing license if the applicant or licensee:

(a) Furnishes false or misleading information or conceals a material fact on the application or other supporting documents;

(b) Has been convicted of fraud or deceptive practice;

(d) Fails to maintain an asset to liability ratio of not less than one to one (1:1) or fails to post additional surety to cover the deficiency;

(e) Violates a provision of this chapter; or

(f) For other good cause shown.”

KY. Rev. Stat. Ann. § 251.440(2) (2024)

Contesting License Refusal and Hearing

“(3) Any person denied a license or whose license has been revoked for these reasons shall:

(a) Be given written notice within thirty (30) working days of receipt of application or prior to revocation; and

(b) May request a hearing by writing to the board. Upon request, a hearing shall be conducted in accordance with KRS Chapter 13B.”

KY. Rev. Stat. Ann. § 251.440(3) (2024)

Louisiana

License Required

“A. No person shall engage in the business of buying or selling agricultural commodities from producers unless licensed by the commission, except a person that qualifies as a noncommercial grain buyer.”

La. Stat. Ann. § 3:3410.1(A) (2024)

Application Process

“B. Each applicant for a grain dealer license shall file the application described in R.S. 3:3408 and demonstrate its competency to engage in the business of buying or selling agricultural commodities prior to licensure.”

La. Stat. Ann. § 3:3410.1(B) (2024)

“A. The application for licensure as a warehouse, cotton merchant, or grain dealer shall contain:

(1) The name and business address of the applicant.

(2) If the applicant is a corporation or other business entity, the names and addresses of the principal officers of the corporation or other business entity.

(3) If the applicant is a trade, cooperative, or other type of association, the names and addresses of the board of directors of such association.

(4) The kinds of agricultural commodities which the applicant proposes to store or trade.

(5) The address and the capacity of the principal place of business of the applicant.

(6) The address and the capacity of any other locations within the state where the applicant will engage in the business of storing agricultural commodities or buying and selling agricultural commodities on a regular basis.

(7) A current financial statement which shall include, but not be limited to, the following:

(a) A balance sheet.

(b) A statement of income (profit and loss).

(d) A statement of cash flows.

(8) The financial statement shall be one of the following types of statements:

(a) A compilation, or compiled statement.

(b) A review, or reviewed statement.

(9) Except as otherwise provided in Chapter 2 of Title 37 of the Louisiana Revised Statutes of 1950, the financial statement shall be prepared by an accountant who is not a full-time employee of the applicant and who meets at least one of the following requirements:

(a) Is a certified public accountant.

(b) Is a graduate of an accredited four-year college or university with a degree in accounting.

(10) All financial statements shall be accompanied by a certification by the applicant or the chief executive officer of the applicant, under penalty of perjury as provided in R.S. 14:123, that the financial statement accurately reflects the financial condition of the applicant for the period covered in the statement. Only one financial statement shall be required for a chain of warehouses covered by a single warehouse license. The initial application for a license shall be accompanied by the warehouse’s, cotton merchant’s, or grain dealer’s most recent financial statement. Thereafter, all financial statements shall be filed within ninety days after the close of the grain dealer’s, cotton merchant’s, or warehouse’s fiscal year.

(11) Any additional information which the commission may require.”

La. Stat. Ann. § 3:3408(A) (2024)

Renewal

“D. Each license issued by the commission shall be valid until June thirtieth following the date of issue and shall be renewed on or before July first of each year.”

La. Stat. Ann. § 3:3410.1(D) (2024)

“B. The application for annual renewal of the said licenses shall contain the same information as required under Subsection A of this Section.”

La. Stat. Ann. § 3:3408(B) (2024)

Fees

“E. The fee for issuance and renewal of each license shall be two hundred dollars.”

La. Stat. Ann. § 3:3410.1(E) (2024)

“A. Prior to issuance of the license, an applicant for a warehouse, grain dealer, or cotton merchant license shall furnish to and file with the commission security and provisional stock insurance as a condition for issuance of the license.”

La. Stat. Ann. § 3:3409(A) (2024)

Posting

“C. Each license issued by the commission pursuant to this Section shall specify on the face thereof that it is a grain dealer license, and shall be posted by the licensee in its principal place of business in this state.”

La. Stat. Ann. § 3:3410.1(C) (2024)

Refusal, Suspension, Revocation

“K. The commission may suspend or revoke the license of any licensee who fails to maintain the required security and insurance in full force and effect.”

La. Stat. Ann. § 3:3409(K) (2024)

“The commission may refuse to issue a license to any applicant for a warehouse license, cotton merchant license, or grain dealer license if the commission finds that the warehouse proposed for licensure is not suitable for the storage of agricultural commodities, or if the commission finds that the applicant for a warehouse license, cotton merchant license, or a grain dealer license cannot demonstrate a net worth of at least one hundred thousand dollars, or is incompetent to conduct such warehouse, cotton merchant, or grain dealer business in accordance with this Chapter or the rules and regulations adopted pursuant hereto; or if there is any other sufficient reason within the intent of this Chapter for not issuing such warehouse, cotton merchant, or grain dealer license.”

La. Rev. Stat. Ann. § 3:3411 (2024)

Contesting License Refusal and Hearing

N/A

Maine

License Required

“A person may not act as agent, broker, dealer or processor unless duly licensed as provided in this subchapter. Before acting as a dealer, processor, broker or agent, a person shall file an application with the commissioner for a license to transact the business of a dealer, processor, broker or agent and the application must be accompanied by the license fee provided in this subchapter.

A person may not buy, solicit or negotiate the sale of any licensed commodity in this State as a representative of any agent, broker, dealer or processor unless that person has been authorized as a representative by a licensee in writing, and a copy of the authorization is filed with the commissioner, except when the person conducts business in the office of the licensee. A licensee shall notify the commissioner in writing immediately upon terminating the authorization for a person to act as that licensee’s representative.”

Me. Rev. Stat. tit. 7, § 454 (2024)

Application Process

“1. Application. The applicant shall file an application on forms as prescribed and furnished by the commissioner. These forms shall include the full name of the person applying for the license and, if the applicant is a corporation, partnership, association, exchange or legal representative or officer, director, partner or member thereof, all names and positions are to be stated on the application. If the applicant is a foreign corporation, it shall certify that it is registered with the Secretary of State under Title 13‑A, chapter 12 and further state the principal business address of the applicant in the State or elsewhere, the address of all places of business in the State and the name or names of the person or persons authorized to receive and accept service of lawful process upon the applicant within the State. All questions required to be answered in application for licenses shall be sworn to.”

Me. Rev. Stat. tit 7, § 455(1) (2024)

“3. Qualifications of applicant. The applicant shall satisfy the commissioner of the applicant’s character, financial responsibility and good faith in seeking to engage in the business. The commissioner may issue a license to the applicant if the commissioner is satisfied as to the applicant’s qualifications. When the license is issued, the applicant may act in the capacity described in the license for a period of one year from the date of issuance.”

Me. Rev. Stat. tit. 7, § 455(3) (2024)

Renewal

N/A

Fees

“4. Bond. In order to insure the licensee’s financial responsibility and to protect producers of licensed commodities, the commissioner shall require the licensee to file a bond in a form and amount satisfactory to the commissioner, but in any event not less than $5,000 nor more than $100,000, payable to the commissioner in the commissioner’s official capacity and conditioned on the full and prompt payment for all licensed commodities received or purchased from producers or other licensees during the effective period of the license.”

Me. Rev. Stat. tit. 7, § 455(4) (2024)

“5. License fees. … The fee for each license is $50. If the licensee desires to carry on business in more than one place within the State, the licensee shall procure additional copies of the license, certified by the commissioner, for each place where business is to be conducted. The fee for each certification is $10. All fees collected under this subchapter must be paid forthwith to the Treasurer of State and credited to the Department of Agriculture, Conservation and Forestry for the administration of this subchapter and other expenses incident to the administration of the department, and must be expended by the commissioner for the purposes for which the department is created. If any fees are not expended during the year in which they are collected, the unexpended balance does not lapse, but is carried as a continuing account available for the purposes specified, until expended. “

Me. Rev. Stat. tit. 7, § 455(5) (2024)

Posting

“5. License fees. Each license must plainly state the name and business address or addresses of the licensee and must be posted in a conspicuous place in each office where the business is transacted …”

Me. Rev. Stat. tit. 7, § 455(5) (2024)

Refusal, Suspension, Revocation

“1. Acts enumerated. The commissioner or the commissioner’s duly authorized agent may refuse to grant a license, after notice and opportunity for a hearing is provided in a manner consistent with the Maine Administrative Procedure Act as to adjudicatory proceedings, upon a finding that any of the following acts have occurred:

A. That fraudulent charges or returns have been made by the applicant or licensee for the handling, sale or storage of licensed commodities or for the rendering of any service in connection with the handling, sale or storage of licensed commodities;

B. That the applicant or licensee has failed or refused to render a true account of sales, or to make a settlement thereon, within the time and in the manner required by this subchapter or has failed to or refused to pay for licensed commodities purchased by the applicant or licensee within 30 days after acceptance of the licensed commodities;

C. That the applicant or licensee has knowingly made any false material statement as to the condition, quality or quantity of licensed commodities received, handled, sold, purchased or stored by the applicant or licensee;

D. That the applicant or licensee has knowingly made any substantial misrepresentation as to the condition of the market for licensed commodities;

E. That the applicant or licensee has defrauded or attempted to defraud a producer;

F. That the applicant or licensee to whom any consignment is made has reconsigned the consignment to another dealer, processor, broker or agent and has received, collected or charged by such means more than one commission for making the sale for the consignor without previously obtaining the written consent of the consignor;

G. That the applicant or licensee knowingly made any false material statements in the procurement of a license under this subchapter;

H. That the applicant or licensee has not accounted promptly and properly to the producer with regard to any claim settled or collected by the applicant or licensee for the producer;

I. That the applicant or licensee has failed or refused, upon demand, to permit the commissioner or the commissioner’s agents to make the investigations, examinations or audits as provided in this subchapter or that the applicant or licensee has removed or sequestered any books, records or papers necessary to any such investigations, examinations or audits or has otherwise obstructed the same;

J. That the applicant or licensee has failed or refused to keep and maintain the records as required by this subchapter; or

K. That the applicant or licensee has committed any act or conduct with regard to the handling, sale or storage of licensed commodities, whether of the same or different character than specified in this subsection, that constitutes or demonstrates bad faith, incompetency, untrustworthiness or dishonest, fraudulent or improper dealings.”

Me. Rev. Stat. tit. 7 § 457(1) (2024)

“2. District Court. The District Court may, in a manner consistent with the Maine Administrative Procedure Act, suspend or revoke a license upon finding that the licensee has committed any of the Acts enumerated in subsection 1.

Any order revoking or suspending a license may, within the discretion of the District Court, be made conditional upon the settlement, adjustment or satisfaction of the consequence of the violation or violations as specified and the operation of such an order may be deferred for that purpose. Any order may contain provisions for its modification or dismissal upon presentation to the District Court of evidence that the matter of complaint has been settled, adjusted or withdrawn at any time before the order becomes final. “

Me. Rev. Stat. tit. 7 § 457(2) (2024)

“3. Notification of insufficient payment or nonpayment. Producers may notify the commissioner of insufficient payment or nonpayment for licensed commodities delivered to any agent, broker, dealer or processor in violation of subsection 1, paragraph B. In addition to any other remedies available under this subchapter:

A. The commissioner or the commissioner’s agent, upon notification by a producer of insufficient payment or nonpayment, shall immediately investigate the complaint and shall, in a manner consistent with the provisions of the Maine Administrative Procedure Act, hold a hearing. The person accused of nonpayment, the respondent, shall provide the commissioner with a copy of the contract, if any, and all other materials and information necessary to enable the commissioner to carry out this section. Upon finding that the respondent has violated the contract or other obligation, express or implied, the commissioner shall require the respondent to post a bond sufficient to cover the debt owed to the producer or producers. Failure to post the bond must be considered a violation of this subchapter and each day failure continues must be considered a separate violation;

B. The commissioner may require the licensee, accused of or found after a hearing to be in default of payment to a producer, to submit a payment schedule to the commissioner. In the event that the schedule of payment proposed is not satisfactory to the commissioner, the commissioner may establish the schedule of payment; and

C. The commissioner may file a complaint with the District Court to compel the posting of a bond required under paragraph A and to suspend the license of any licensee who fails to conform to the payment schedule established in this subsection until the producer is paid the total claim to which the producer is entitled. Upon the filing of a complaint by the commissioner in the District Court, the licensee shall post a bond sufficient to cover the total claim on the date on which the complaint is filed. The bond required in a court proceeding may be waived by the District Court in the event that the bond required in paragraph A is valid and sufficient to cover the total claimed. Nothing in this subsection may be construed to prohibit a producer from seeking redress for insufficient payment or nonpayment from licensees in any court or in accordance with any other state and federal procedure established to obtain redress.”

Me. Rev. Stat. tit. 7 §§ 457(3)(A)-(C) (2024)

Contesting License Refusal and Hearing

Me. Rev. Stat. tit. 7 § 457(2) (2024)

Maryland

License Required

“(a) A person may not be a grain dealer without first obtaining an annual grain dealer’s license from the Secretary.”

Md. Code Ann. Agric. § 13-203(a) (2024)

Application Process

“(b) Each license shall be issued upon payment of the applicable fee required by subsection (d) of this section and providing proof of adequate insurance under § 13–212 of this subtitle and shall be effective until December 31, following, unless revoked.”

Md. Code Ann. Agric. § 13-203(b) (2024)

“(a) A license may not be issued or renewed under this subtitle until the applicant has:

(1)(i) Filed with the Secretary a financial statement, as provided in subsection (b) of this section, establishing the net worth of the applicant’s grain business; or

(ii) Posted a surety bond, irrevocable letter of credit, or cash guaranty at least as large as the following amounts for the different types of licenses:

Type of license Minimum amounts

A $15,000

B $35,000

C $100,000

D $100,000; and

(2) Demonstrated proof of insurance coverage as required by this subtitle.”

Md. Code Ann. Agric. § 13-212(a) (2024)

Renewal

(b) Each license shall be issued upon payment of the applicable fee required by subsection (d) of this section and providing proof of adequate insurance under § 13–212 of this subtitle and shall be effective until December 31, following, unless revoked.”

Md. Code Ann. Agric. § 13-203(b) (2024)

“(f)(1) A person who applies for renewal or original licensure as a grain dealer shall make an oath under penalty of perjury that all representations made by the person in the most recent grain records are true and correct.

(2) A person immediately shall notify the Department if their status as to the type of license changes.”

Md. Code Ann. Agric. § 13-203(f) (2024)

Fees

“(d) The fees for the different types of grain dealers’ licenses are as follows:

Bushels of grain anticipated to be handled in the year of license application rounded to the nearest:

Type of license 100 bushels Annual license fee

A 1 to 49,999 $50

B 50,000 to 99,999 $100

C 100,000 to 499,999 $200

D 500,000 and above. $300

(e)(1) In determining the type of license to issue under this section, the Secretary may rely on representations of the number of bushels of grain handled in the most recent grain records of the grain dealer.

(2) For a person who is applying for licensure as a grain dealer for the first time in this State, the Secretary may rely on the representations made by the person of the number of bushels of grain that the person anticipates handling in the year for which the license is sought.”

Md. Code Ann. Agric. §§ 13-203(d)-(e) (2024)

Posting

“The grain dealer’s license shall be posted in a conspicuous place in the place of business.”

Md. Code Ann. Agric. § 13-210 (2024)

Refusal, Suspension, Revocation

“The Secretary may refuse to issue a license or may suspend or revoke a license for:

(1) Fraudulent or deceptive statements on an application for a license;

(2) Failure to comply with any of the provisions of this subtitle or the rules or regulations adopted pursuant to it; or

(3) Failure to maintain adequate insurance on all grain received into the physical control or possession of the grain dealer.”

Md. Code Ann. Agric. § 13-208 (2024)

Contesting License Refusal and Hearing

“(a) Before any license is suspended or revoked, the Secretary shall give the licensee at least 10 days’ written notice of the decision to suspend or revoke the license.

(b) Any person aggrieved by a decision made under this section may seek review of that decision under Title 2, Subtitle 4 of this article.”

Md. Code Ann. Agric. § 13-209 (2024)

Michigan

License Required

“(1) A person shall not act or offer to act as a grain dealer in this state without a license from the department issued under this act.”

Mich. Comp. Laws § 285.63(1) (2024)

Application Process

“(1) A grain dealer shall file an application for a new license or for renewal or amendment of a license with the department. The department may determine the time when an application is filed and the form of the application. A complete application must include all of the following:

(a) The name and ownership interest of each owner, stockholder, member, or partner of the grain dealer who owns at least 5% of the shares, other than publicly traded shares, or other ownership interests of the grain dealer, or for a grain dealer described in section 9(3), at least 5% of the shares, other than publicly traded shares, or other ownership interests of the parent corporation.

(b) The location and storage capacity of each facility of the grain dealer.

(d) A statement that none of the events described in section 10 have occurred within the 5 years preceding the date of the license application, or if any of those events have occurred, a description of those events.

(e) A statement of the total bushels of farm produce handled by the grain dealer during the grain dealer’s most recent completed fiscal year.

(f) If the grain dealer’s most recent completed fiscal year was for a period of less than 12 months or the grain dealer materially changed its farm produce handling practices in that fiscal year, a projection of the total bushels of farm produce the grain dealer expects to handle in the current fiscal year.

(g) Copies of all warehouse receipt forms, price later agreement forms, and acknowledgment forms used by the grain dealer.

(h) Copies of all of the grain dealer’s facility lease agreements and bin charts.

(i) If the grain dealer does not maintain an office in this state and does not have a resident agent in this state, the application must include a written appointment of a statutory agent upon whom process, notice, or demand may be served. The statutory agent must be an individual residing in this state or a corporation whose principal place of business is located in this state. If the identity or address of the statutory agent changes while the application is pending or after a license is issued, the grain dealer shall within 3 days file with the department a written appointment of the new statutory agent or written notice of the new address, as applicable.

(j) The license fee described in section 8.

(k) The financial statement described in section 9.”

Mich. Comp. Laws § 285.67(1) (2024)

“(1) A grain dealer shall include with an application for a license or renewal a financial statement for the grain dealer’s most recent completed fiscal year. The financial statement shall be a reviewed or audited financial statement, prepared by a certified public accountant in accordance with generally accepted accounting principles. The end of the grain dealer’s most recent completed fiscal year shall be within 6 months of the expiration date of the grain dealer’s current license. The financial statement shall include at least all of the following:

(a) An accountant’s report, a balance sheet, an income statement, and notes and disclosures.

(b) A statement of the grain dealer’s allowable net assets for purposes of section 3.

(c) A statement from the certified public accountant that he or she acknowledges that the department is relying on the financial statement in determining whether the grain dealer meets the allowable net asset requirement under section 3(3).

(2) If a financial statement described in subsection (1) discloses that the grain dealer during the preceding fiscal year had a current asset to current liability ratio of less than 1 to 1, the licensee shall include with the application a plan and timetable to increase the current asset to current liability ratio to 1 to 1 or more.

(3) If a financial statement described in subsection (1) is a financial statement of the licensee’s parent corporation or a consolidated financial statement of the licensee and its parent corporation, the application shall include a declaration of liability signed by an authorized representative of the parent corporation, by which the parent corporation assumes all financial obligations incurred by the licensee during the term of the license.”

Mich. Comp. Laws § 285.69 (2024)

“(2) If an application described in subsection (1) is considered incomplete by the department, the department shall notify the applicant in writing or electronically not more than 30 days after receipt of the incomplete application, describing the deficiency and requesting the additional information. The 60-day time period described in subsection (6) is tolled upon notification by the department of a deficiency until the date the requested information is received by the department. The determination of the completeness of an application does not operate as an approval of the application for the license and does not confer eligibility of an applicant determined otherwise ineligible for issuance of a license. The tolling of the 60-day time period under this subsection does not allow the department to otherwise delay the processing of the application, and that application, upon completion, must be placed in sequence with other complete applications received at that same time.”

Mich. Comp. Laws § 285.67(2) (2024)

“(6) The department shall issue or deny an initial or renewal license not more than 60 days after the department receives a complete application from an applicant.

(7) If the department fails to issue or deny a license within the time required by this section, the department shall return the license fee and shall reduce the license fee for the applicant’s next renewal application, if any, by 15%. The department shall not discriminate against an applicant in the processing of the application based on the fact that the license fee was refunded or discounted under this subsection.”

Mich. Comp. Laws §§ 285.67(6)-(7) (2024)

“(3) Subject to subsection (4), the department may refuse to issue or renew a license to a grain dealer unless the grain dealer meets at least 1 of the following at the time the grain dealer submits the application:

(a) Has allowable net assets of $100,000.00 or more and handled 1,000,000 or fewer bushels of farm produce in the grain dealer’s most recent fiscal year.

(b) Has allowable net assets of $100,000.00 or more, and the allowable net assets equal or exceed the product of 10 cents multiplied by the number of bushels of farm produce handled by the grain dealer in the grain dealer’s most recent completed fiscal year.

(4) If a grain dealer fails to meet any of the allowable net asset requirements under subsection (3), the department may issue or renew the license if the grain dealer provides the department with a negotiable bond issued by a surety authorized to conduct business in this state, or proof of establishment of a restricted account in a financial institution that conducts business in this state, acceptable to the department and of which the department is the sole beneficiary, that is in an amount equal to the amount by which the grain dealer’s allowable net assets failed to meet the allowable net asset requirement applicable under subsection (3).”

Mich. Comp. Laws §§ 285.63(3)-(4) (2024)

“(1) The department may issue, amend, or renew a license if the department determines that the applicant has complied with this act and rules promulgated under this act.”

Mich. Comp Laws § 285.64(1) (2024)

“(1) If a grain dealer has applied for a license but needs additional time to comply with the requirements of this act for issuance of a license, the department may issue 1 temporary permit to the applicant. A permit issued under this section expires on the expiration date set by the department, which may not be more than 60 days after the permit is issued, when a license is issued, or when the application for license is denied, whichever occurs first. The department may grant 2 extensions of not more than 30 days of a permit issued under this section.

(2) A grain dealer who has been granted a permit under this section has the same rights and obligations of a licensee under this act.”

Mich. Comp. Laws § 285.66 (2024)

Renewal

“(3) Except as provided in subsection (4), a license is issued for a term of 1 year. A license is not transferable by the licensee. A licensee shall prominently display his or her license on the vehicle of a licensee who is a farm produce trucker or at the principal place of business of a licensee who is a grain merchandiser or at a facility, as applicable.

(4) The department may, in its discretion, issue a new license for a term of up to 21 months.”

Mich. Comp. Laws. §§ 285.64(3)-(4) (2024)

“(3) For a license renewal, a licensee shall submit the complete application to the department not less than 30 days before the expiration of the current license term unless the department issues a temporary permit to the licensee under section 6.”

Mich. Comp. Laws § 285.67(3) (2024)

Fees

“(4) If an application is withdrawn before a license or renewal is approved, the department shall retain $50.00 for processing and return the remainder of the license fee to the grain dealer.”

Mich. Comp. Laws § 285.67(4) (2024)

“(1) A grain dealer shall pay a license fee to the department with an application for a license or renewal of a license. The license fee is the sum of all of the following that apply to the grain dealer:

(a) For each receiving point of the grain dealer that has total bushel capacity of:

(i) 100,000 or less $ 500.00

(ii) More than 100,000 and 200,000 or less $ 625.00

(iii) More than 200,000 and 300,000 or less $ 750.00

(iv) More than 300,000 and 400,000 or less $ 875.00

(v) More than 400,000 $ 1,000.00

(b) For vehicles owned by a farm produce trucker:

(i) For 1 vehicle $ 500.00

(ii) For each additional vehicle $ 200.00

Mich. Comp. Laws § 285.68(1) (2024)

“(3) A license fee determined under subsection (1) is the fee for a 1-year license. If the department has issued a license for a period of longer than 1 year under section 4(4), it shall require a license fee increased on a proportionate basis to reflect the longer term of the license.”

Mich. Comp. Laws § 285.68(3) (2024)

Posting

N/A

Refusal, Suspension, Revocation

“(3) The director may revoke or suspend the license of a grain dealer or deny a license to a grain dealer if the director finds that the licensee has done any of the following:

(a) Engaged in fraudulent or deceptive practices.

(b) Violated or attempted to violate this act or rules promulgated under this act.

(d) Failed to maintain accurate and complete records as required by this act.

(e) Failed to pay a fee required by this act.

(f) Refused to allow any authorized representative of the department to examine the applicant’s or licensee’s accounting records, accounts, farm produce inventories, or facilities during regular business hours.

(g) Failed to possess sufficient farm produce to cover the outstanding warehouse receipts or acknowledgment forms issued or assumed by the applicant or licensee.

(h) Issued a warehouse receipt in violation of this act or any rules adopted under this act.

(i) Failed to maintain the net allowable assets required by this act.

(j) Failed to submit a financial statement in compliance with this act.

(k) Failed to secure his or her obligations for price later agreements.”

Mich. Comp. Laws. § 285.82(3) (2024)

“After a hearing conducted in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the department may revoke or refuse to issue or renew a license, or require a fidelity bond in an amount and on terms determined by the department, if any of the following occurred within the 5 years preceding the date of the license application:

(a) The applicant, a manager employed by the applicant, or any other individual with management responsibilities for the farm produce handling business of the applicant was a principal in a grain dealer receivership or insolvency proceeding that resulted in losses to creditors or depositors.

(b) The applicant, a manager employed by the applicant, or any other individual with management responsibilities for the farm produce handling business of the applicant pled guilty or was convicted of any felony involving fraud, conversion, or embezzlement.

(c) The applicant’s license under the United States warehouse act, 39 Stat. 486, 7 U.S.C. 241 to 273, was revoked or canceled due to a violation of that act.”

Mich. Comp. Laws § 285.70 (2024)

Contesting License Refusal and Hearing

“(4) In a proceeding to suspend or revoke a license pursuant to subsection (3), the director shall comply with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The director may order a summary suspension of a license pursuant to section 92(2) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.292.

(5) The director shall post a notice on the property of a grain dealer whose license has been restricted, suspended, or revoked that states the limitations or restrictions imposed on the grain dealer. The notice shall not be removed from the property without written authorization from the director.

(6) If a grain dealer’s license is suspended or revoked, the grain dealer may terminate storage, processing, shipping, or handling arrangements and collect outstanding charges.

(7) If a grain dealer’s license is suspended or revoked, the director shall notify all known warehouse receipt holders and unpaid depositors of the grain dealer.

(8) If the director revokes a license under this section or a license expires, the grain dealer shall terminate all arrangements for farm produce handling in any facility of the grain dealer covered by the license in the manner prescribed by the director. Under the direction or supervision of the director, the grain dealer may liquidate farm produce previously received by the grain dealer.

(9) If the director suspends a grain dealer’s license under this act, the grain dealer may under direction or supervision of the director operate the grain dealer’s facilities, but shall not receive any farm produce for handling during the term of the suspension.”

Mich. Comp Laws § 285.82(4)-(9) (2024)

Minnesota

License Required

“An application for a grain buyer’s license must be filed with the commissioner and the license issued before any grain may be purchased …”

Minn. Stat. § 223-17 subd. 1 (2024)

Application Process

“… The applicant for a grain buyer’s license shall identify all grain buying locations owned or controlled by the grain buyer and all vehicles owned or controlled by the grain buyer used to transport purchased grain. Every applicant for a grain buyer’s license shall have a permanent established place of business at each licensed location. An “established place of business” means a permanent enclosed building, including a house or a farm, either owned by the applicant or leased by the applicant for a period of at least one year, and where the books, records, and files necessary to conduct the business are kept and maintained.”

Minn. Stat. § 223-17 subd. 1 (2024)

Renewal

“A license must be renewed annually. Beginning July 1, 1984, the commissioner may stagger the renewal dates of licenses issued under this chapter, subject to the policy expressed in section 116J.69, subdivision 2, clause (4). If a person receives more than one license from the commissioner, the licenses shall be issued at the same time, but only after all conditions for each license are met. Multiple licenses should be combined into one license if possible.”

Minn. Stat. § 223-17 subd. 2 (2024)

Fees

“(a) The commissioner shall set the fees for inspections under sections 223.15 to 223.22 at levels necessary to pay the expenses of administering and enforcing sections 223.15 to 223.22. The fee for any license issued or renewed after June 30, 2005, shall be set according to the following schedule:

(1) $140 plus $110 for each additional location for grain buyers whose gross annual purchases are less than $100,000;

(2) $275 plus $110 for each additional location for grain buyers whose gross annual purchases are at least $100,000, but not more than $750,000;

(3) $415 plus $220 for each additional location for grain buyers whose gross annual purchases are more than $750,000 but not more than $1,500,000;

(4) $550 plus $220 for each additional location for grain buyers whose gross annual purchases are more than $1,500,000 but not more than $3,000,000; and

(5) $700 plus $220 for each additional location for grain buyers whose gross annual purchases are more than $3,000,000.

(b) In addition to the license fee required under paragraph (a), a grain buyer must pay to the commissioner an annual examination fee for each licensed location, as follows:

Bushel Capacity Examination Fee

Examinations without a grain measure $ 100

Less than 150,001 $ 300

150,000 to 250,000 $ 425

250,001 to 500,000 $ 545

500,001 to 750,000 $ 700

750,001 to 1,000,000 $ 865

1,000,001 to 1,200,000 $ 1,040

1,200,001 to 1,500,000 $ 1,205

1,500,001 to 2,000,000 $ 1,380

More than 2,000,000 $ 1,555

(c) The fee for any supplemental examination required by the commissioner under section 223.23 is $55 per hour per examiner.

(d) A licensed grain buyer meeting the annual examination requirements under section 223.23 is exempt from the fees under paragraph (b) if the annual examination is conducted by the Agricultural Marketing Service of the United State Department of Agriculture.

(e) A penalty amount not to exceed ten percent of the fees due may be imposed by the commissioner for each month for which the fees are delinquent.

(f) There is created the grain buyers and storage account in the agricultural fund. Money collected pursuant to sections 223.15 to 223.23 shall be paid into the state treasury and credited to the grain buyers and storage account. Money in the account, including interest, is appropriated to the commissioner for the administration and enforcement of sections 223.15 to 223.23.”

Minn. Stat. § 223-17 subd. 3 (2024)

Posting

N/A

Refusal, Suspension, Revocation

“(a) Except as allowed in paragraph (c), a grain buyer licensed under this chapter must annually submit to the commissioner a financial statement prepared in accordance with generally accepted accounting principles. The annual financial statement required under this subdivision must also:

(1) include, but not be limited to the following:

(i) a balance sheet;

(ii) a statement of income (profit and loss);

(iii) a statement of retained earnings;

(iv) a statement of changes in financial position; and

(v) a statement of the dollar amount of grain purchased in the previous fiscal year of the grain buyer;

(2) be accompanied by a compilation report of the financial statement that is prepared by a grain commission firm or a management firm approved by the commissioner or by an independent public accountant, in accordance with standards established by the American Institute of Certified Public Accountants;

(3) be accompanied by a certification by the chief executive officer or the chief executive officer’s designee of the licensee, and where applicable, all members of the governing board of directors under penalty of perjury, that the financial statement accurately reflects the financial condition of the licensee for the period specified in the statement;

(4) for grain buyers purchasing under $7,500,000 of grain annually, be reviewed by a certified public accountant in accordance with standards established by the American Institute of Certified Public Accountants, and must show that the financial statements are free from material misstatements; and

(5) for grain buyers purchasing $7,500,000 or more of grain annually, be audited by a certified public accountant in accordance with standards established by the American Institute of Certified Public Accountants and must include an opinion statement from the certified public accountant.”

Minn. Stat. § 223-17 subd. 6a (2024)

“A producer claiming to be damaged by a breach of a contract for the purchase of grain by a grain buyer may file a written claim with the commissioner. The claim must state the facts constituting the claim. If a claim is valid, the commissioner may immediately suspend the license, in which case the licensee shall surrender the license to the commissioner. Within 15 days the licensee may request an administrative hearing subject to chapter 14 to determine whether the license should be revoked. If no request is made within 15 days, the commissioner shall revoke the license.”

Minn. Stat. § 223-17 subd. 7 (2024)

Contesting License Refusal and Hearing

“(c) When a license is suspended the licensee shall surrender the license to the commissioner. An applicant or licensee may request an administrative hearing subject to chapter 14 within 15 days after the commissioner suspends a license or refuses to issue or renew a license under clause (b) to determine whether the license should be issued, renewed, or revoked. If no request is made within 15 days after suspension, the commissioner shall revoke the license.”

Minn. Stat. § 223-17 subd. 6a(c) (2024)

Mississippi

License Required

“No person shall operate as a grain dealer without first having obtained a license pursuant to this article; provided, however, that grain dealers licensed under the provisions of the United States Warehouse Act, as amended, or the Mississippi Grain Warehouse Law shall not be required to have a license issued pursuant to this article.”

Miss. Code Ann. § 75-45-304 (2024)

Application Process

“If the department is satisfied:

(a) that the applicant is of good business reputation,

(b) that the applicant has adequate bonding under Section 75-45-305,

(d) that the applicant has sufficient financial resources to guarantee payment to producers for grain purchased from them, the commissioner shall issue a license to the applicant or shall renew the applicant’s license. Licenses shall be issued or renewed annually for a period ending ninety (90) days after the last day of the applicant’s fiscal year. The license or renewal thereof issued by the department under this section shall be posted in the principal office of the licensee in this state. A certificate shall be posted in each location listed on a licensee’s application where he engages in the business of buying grain. In the case of a licensee operating a truck or tractor trailer unit the licensee is required to have a certificate that the license is in effect and that a bond or certificate of deposit has been filed and is carried in each truck or tractor trailer unit used in connection with the purchase of grain from producers. Upon request of a licensee and payment of the fee thereof, the commissioner shall issue to the licensee a certificate that a license has been issued or renewed and a bond filed as required by this article.”

Miss. Code Ann. § 75-45-307 (2024)

Renewal

“(d) that the applicant has sufficient financial resources to guarantee payment to producers for grain purchased from them, the commissioner shall issue a license to the applicant or shall renew the applicant’s license. Licenses shall be issued or renewed annually for a period ending ninety (90) days after the last day of the applicant’s fiscal year. The license or renewal thereof issued by the department under this section shall be posted in the principal office of the licensee in this state. A certificate shall be posted in each location listed on a licensee’s application where he engages in the business of buying grain. In the case of a licensee operating a truck or tractor trailer unit the licensee is required to have a certificate that the license is in effect and that a bond or certificate of deposit has been filed and is carried in each truck or tractor trailer unit used in connection with the purchase of grain from producers. Upon request of a licensee and payment of the fee thereof, the commissioner shall issue to the licensee a certificate that a license has been issued or renewed and a bond filed as required by this article.”

Miss. Code Ann. § 75-45-307(d) (2024)

Fees

“(1) Every licensed grain dealer shall be examined by the commissioner each year. The cost of such examination shall be included in the annual license fee. The commissioner, at his discretion, may make additional examinations at any time. If any discrepancy is found as a result of additional examination, the cost of such examination is to be paid by the grain dealer.”

Miss. Code Ann. § 75-45-309(1) (2024)

Posting

” … The license or renewal thereof issued by the department under this section shall be posted in the principal office of the licensee in this state. A certificate shall be posted in each location listed on a licensee’s application where he engages in the business of buying grain. In the case of a licensee operating a truck or tractor trailer unit the licensee is required to have a certificate that the license is in effect and that a bond or certificate of deposit has been filed and is carried in each truck or tractor trailer unit used in connection with the purchase of grain from producers. Upon request of a licensee and payment of the fee thereof, the commissioner shall issue to the licensee a certificate that a license has been issued or renewed and a bond filed as required by this article.”

Miss. Code Ann. § 75-45-307(d) (2024)

Refusal, Suspension, Revocation

“(3) If a grain dealer violates any of the provisions of this article, his license and certificate of license may be removed from his premises by any department employee charged with the enforcement of this article and returned to the department. Such removal shall constitute a suspension of the license.

(4) The commissioner may upon his own motion, and shall upon the verified complaint in writing of any person setting forth facts which if proved would constitute grounds for refusal, suspension or revocation of a license under this article, investigate the actions of any applicant or any person or persons applying for, holding or claiming to hold a license.”

Miss. Code Ann. §§ 75-45-309(3)-(4) (2024)

Contesting License Refusal and Hearing

“(5) The commissioner within ten (10) days after removing and suspending a license as provided in this section or before refusing to issue or renew or before otherwise suspending or revoking a license shall set a date for a hearing thereon and at least ten (10) days prior to the date set for the hearing, shall notify in writing the applicant for or holder of a license, thereinafter called the respondent, that a hearing will be held on the date designated to determine whether the respondent is privileged to hold such license and shall afford the respondent opportunity to be heard in person or by counsel in reference thereto. Such written notice may be served by personal service on the respondent or by mailing the same by registered or certified mail to the place of business last theretofore specified by the respondent in the last application or notification to the department.

(6) At the time and place fixed in the notice, the commissioner shall proceed to hear the matter and any charges made and both the respondent and any complainant shall be accorded opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the matter or charges or to any defenses thereto. The commissioner may continue such hearing from time to time.”

Miss. Code Ann. §§ 75-45-309(5)-(6) (2024)

Missouri

License Required

“No person shall engage in business as a grain dealer in the state of Missouri without having obtained a license therefor issued by the director pursuant to sections 276.401 to 276.582. “

Mo. Rev. Stat. § 276.411(1) (2024)

Application Process

“2. Each application for a license to engage in business as a grain dealer shall be filed with the director and shall be in a form prescribed by the director.

3. The application for an initial license may be filed at any time prior to beginning business as a grain dealer; however, such license shall terminate on the last day of the fifth month after the close of the grain dealer’s fiscal year, except that the initial licensing period shall be for at least six months but not longer than eighteen months. The grain dealer shall set forth on the original application the closing date for his fiscal year.”

Mo. Rev. Stat. §§ 276.411(2)-(3) (2024)

“1. All applications shall be accompanied by a true and accurate financial statement of the applicant, prepared within six months of the date of application, setting forth all the assets, liabilities and net worth of the applicant. In the event that the applicant has been engaged in business as a grain dealer for at least one year, the financial statement shall set forth the aggregate dollar amount paid for grain purchased in Missouri and those states with whom Missouri has entered into contracts or agreements as authorized by section 276.566 during the last completed fiscal period of the applicant. In the event the applicant has been engaged in business for less than one year or has not previously engaged in business as a grain dealer, the financial statement shall set forth the estimated aggregate dollar amount to be paid for grain purchased in Missouri and those states with whom Missouri has entered into contracts or agreements as authorized by section 276.566 during the applicant’s initial fiscal period. All applications shall also be accompanied by a true and accurate statement of income and expenses for the applicant’s most recently completed fiscal year. The financial statements required by this chapter shall be prepared in conformity with generally accepted accounting principles; except that the director may promulgate rules allowing for the valuation of assets by competent appraisal.”

Mo. Rev. Stat. § 276.421(1) (2024)

“7. Any licensed grain dealer or applicant for a grain dealer’s license shall maintain a minimum net worth equal to five percent of annual grain purchases as set forth in the financial statements required by this chapter. If the dealer or applicant is deficient in meeting this net worth requirement, he or she must post additional bond as required in section 276.436.

8. (1) Any licensed grain dealer or applicant for a grain dealer’s license shall have and maintain current assets at least equal to one hundred percent of current liabilities. The financial statement required by this chapter shall set forth positive working capital in the form of a current ratio of the total adjusted current assets to the total adjusted current liabilities of at least one to one.”

Mo. Rev. Stat. §§ 276.421(7)-(8)(1) (2024)

Renewal

“3. The application for an initial license may be filed at any time prior to beginning business as a grain dealer; however, such license shall terminate on the last day of the fifth month after the close of the grain dealer’s fiscal year, except that the initial licensing period shall be for at least six months but not longer than eighteen months. The grain dealer shall set forth on the original application the closing date for his fiscal year.

4. At least sixty days prior to the expiration of each license issued by the director under this chapter, the director shall notify the dealer of the date of expiration and furnish the dealer with the renewal application. The dealer shall submit the renewal application to the director at least thirty days prior to the date of expiration of the license. The dealer shall be penalized ten dollars per day for each day the renewal application is submitted after the date the application for a renewal license is due. The date of submission of the renewal application shall be the date postmarked. Any person licensed under both the provisions of sections 276.401 to 276.582 and sections 411.010 to 411.800 who submits a combination warehouse-grain dealer renewal application shall not be assessed a penalty for late renewal in excess of ten dollars per day.”

Mo. Rev. Stat. §§ 276.411(3)-(4) (2024)

Fees

“5. The original application shall be accompanied by a filing fee pursuant to section 276.506.”

Mo. Rev. Stat. § 276.411(5) (2024)

“1. Every person licensed as a grain dealer shall have filed with the director a surety bond executed and signed by the grain dealer as principal and issued by a responsible corporate surety licensed to execute surety bonds in the state of Missouri. It is a violation of sections 276.401 to 276.582 for any person to engage in the business of being a grain dealer without a sufficient surety bond on file with the department, on a form prescribed and furnished by the director.”

Mo. Rev. Stat. § 276.426(1) (2024)

Posting

“1. Each dealer shall have and conspicuously display in each of his business locations, within full and unobstructed sight of the public

(1) Either the original or a certified copy of the dealer license as issued by the director;

(2) Such other materials or information as may be required by the director.”

Mo. Rev. Stat. § 276.456(1) (2024)

Refusal, Suspension, Revocation

“4. Upon completion of any examination which reveals a failure to comply with the provisions of sections 276.401 to 276.582, and the regulations promulgated hereunder, the director or any department auditor, within a reasonable time, shall present a written discrepancy report to the dealer, his employee or agent. The report shall specify the areas of noncompliance and shall give a specific period of time, reasonable and practical under the circumstances, within which corrective action is to be taken. A report of that corrective action shall be sent to the director. If, after further examination, the discrepancy still exists, the director may modify, suspend or revoke the dealer’s license, or the director may take whatever other action he deems necessary consistent with the provisions of sections 276.401 to 276.582 until the dealer has corrected the discrepancy.”

Mo. Rev. Stat. § 276.423(4) (2024)

Contesting License Refusal and Hearing

“5. The director is hereby authorized to issue subpoena duces tecum to any financial institutions, or to any other type of business entity, causing them to deliver any and all records of a licensee, or any and all records kept pertaining to a licensee or any person who in the opinion of the director may need to be licensed. Such financial institutions, or other business entities, are hereby authorized and required to deliver any and all such records to the director notwithstanding any law to the contrary. This section applies to persons or individual accounts or transactions as well as to corporate records where the licensee, or person, who in the opinion of the director, needs to be licensed, is conducting business in corporate form.”

Mo. Rev. Stat. § 276.423(5) (2024)

Montana

License Required

“(1) A person may not engage in the business of a commodity dealer in this state without first having obtained a license issued by the department.”

Mont. Code Ann. § 80-4-601(1) (2023)

Application Process

“(2) An application for a license to engage in business as a commodity dealer must be filed with the department and must be on a form prescribed by the department.

(3) (a) A license application must include the following:

(i) the name of the applicant;

(ii) the names of the officers and directors if the applicant is a corporation;

(iii) the names of the partners if the applicant is a partnership;

(iv) the location of the principal places of business;

(v) a sufficient and valid bond as specified in 80-4-604, plus the bond specified in subsection (5)(a)(i) or (5)(a)(ii) if applicable, or as specified in subsection (5)(a)(iii);

(vi) a complete financial statement prepared by a certified public accountant according to generally accepted accounting principles, setting forth the applicant’s cost of all commodities purchased in Montana, assets, liabilities, and equity; and

(vii) any other reasonable information the department finds necessary to carry out the provisions and purpose of this part.

(b) In determining the value of assets for the purposes of commodity dealer licensing:

(i) the value of the assets must be shown at original cost less depreciation, except that upon written request filed with the department, the director may allow asset valuations in accordance with a competent appraisal; and

(ii) credit may be given for insurable property, such as buildings, machinery, equipment, and merchandise inventory, only to the extent that the insurable property is protected against loss or damage by fire by insurance in the form of lawful policies issued by one or more insurance companies authorized to do business and subject to service of process in suits brought in this state.

(4) Except as provided in subsection (5), in order to receive and retain a commodity dealer’s license, a commodity dealer shall have and maintain:

(a) equity of $50,000;

(b) positive working capital; and

Mont. Code Ann. §§ 80-4-601(2)-(4) (2023)

“(6) A company may post a bond required by this part for a subsidiary company if the corporate bonds are rated as Aa3 or better by Moody’s investors service, inc., or as AA- or better by Standard and Poor’s financial services and are issued with the full credit of the parent corporation.”

Mont. Code Ann. § 80-4-601(6) (2023)

Renewal

“(2) A commodity dealer’s license may be renewed annually by submitting all required licensing documents.

(3) A commodity dealer’s license that has expired may be reinstated by the department upon receipt of all licensing documents required and a penalty fee in the amount of $50 if the document is filed within 30 days from the date of expiration of the commodity dealer’s license. At no time during the 30-day period or thereafter may the person act as a commodity dealer. All license applications received after the 30-day penalty period must be considered original applications.”

Mont. Code Ann. §§ 80-4-603(2)-(3) (2023)

Fees

“(1) Except as provided in subsection (3), the department shall collect an annual fee of $232 per facility for each commodity dealer license.

(2) If, after evaluation of the commodity dealer/public warehouse operator program, the department determines that revenue from license fees is inadequate to accomplish the purposes of this chapter, the department may by rule increase the license fees, but the fee may not exceed $500 for a facility.”

Mont. Code Ann. §§ 80-4-602(1)-(2) (2023)

“(1) An applicant for a license to operate as a commodity dealer shall, before a license may be issued, file with the department a surety bond or its equivalent, as established by department rule, payable to the state.”

Mont. Code Ann. § 80-4-604(1) (2023)

Posting

“The commodity dealer’s license must be posted in a conspicuous location at the dealer’s place of business. A duplicate commodity dealer’s license must be posted at each location at which records are maintained for transactions of the commodity dealer and also within each truck operated by the dealer in the state.”

Mont. Code Ann. § 80-4-605 (2023)

Refusal, Suspension, Revocation

“(1) The department may revoke, suspend, or modify a commodity warehouse operator’s or commodity dealer’s license when it has reasonable cause to believe that the licensee has committed any of the following acts, each of which is a violation of parts 4 through 7 of this chapter:

(a) failure to maintain all initial licensing requirements, including insurance, bonding, equity, and working capital requirements. In determining compliance with equity and working capital requirements, the department may consider the licensee’s status under any prior or current bankruptcy proceedings, as well as any outstanding civil settlements or judgments.

(b) aiding or abetting another person in the violation of the licensure or any other provisions of parts 4 through 7 of this chapter;

(d) failure or refusal to allow inspection or maintain and provide records, reports, and other information required by the department;

(e) failure or refusal to post storage and other charges as filed with the department;

(f) failure or refusal to accept agricultural commodities for storage as required under 80-4-523;

(g) failure to comply with the warehouse receipt and scale weight ticket requirements of 80-4-525 and 80-4-527;

(h) failure of a warehouse operator to maintain and deliver upon request sufficient agricultural commodities to cover outstanding warehouse receipts as required under 80-4-531;

(i) discrimination in charges by a warehouse operator as provided in 80-4-524;

(j) failure to provide payment for any agricultural commodity;

(k) failure to satisfy a judgment entered as a result of a violation of this chapter;

(l) violation of or failure or refusal to comply with any other provision of parts 4 through 7 of this chapter or any rule adopted by the department pursuant to parts 4 through 7; or

(m) failure to assess, report, or pay an assessment authorized and required pursuant to Title 80, chapter 4 or 11.

(2) The department may refuse to issue or renew a license if the applicant or licensee:

(a) has a license as a warehouse operator or commodity dealer that was previously or is currently suspended or revoked. In determining the sufficiency of cause, the department shall consider the nature and length of the action and any subsequent licensure or other evidence of rehabilitation.

(b) does not satisfy the bonding, insurance, equity, or working capital requirements as specified in subsection (1)(a) or any other provisions required as a condition to licensing;

(c) has been convicted of a criminal offense and the denial or refusal is made after considering Title 37, chapter 1, part 2.

(3) The issuance of a license based on information provided by the applicant that the department subsequently determines incorrect is void, and any conduct under that license is a violation.”

Mont. Code Ann. §§ 80-4-421(1)-(3) (2017)

Contesting License Refusal and Hearing

“(4) All proceedings brought under subsections (1) and (2) must be conducted under the provisions of the Montana Administrative Procedure Act.

(5) The department is authorized to issue summary revocations, suspensions, or denials without hearing pursuant to the procedures established in 2-4-631.”

Mont. Code Ann. §§ 80-4-421(4)-(5) (2017)

Nebraska

License Required

“All grain dealers doing business in this state shall be licensed by the commission …”

Neb. Rev. Stat. § 75-903 (2024)

Application Process

” … If the applicant is an individual, the application shall include the applicant’s social security number. To procure and maintain a license, each grain dealer shall:

(1) Pay an annual fee of one hundred dollars which shall be due on or before the date established by the commission for each license. Such fees shall be paid to the State Treasurer and credited to the General Fund;

(2) File security which may be a bond issued by a corporate surety company and payable to the commission, an irrevocable letter of credit, or a certificate of deposit, subject to the approval of the commission, for the benefit of any producer who files a valid claim arising from a sale to a grain dealer. The security shall be in an amount set by the commission of not less than thirty-five thousand dollars and not more than one million dollars. Amounts used in the calculation of the security shall include all direct delivery grain purchases and exchanges valued on the date delivery is made. Amounts used in the calculation of the security shall not include any transactions in which direct delivery grain is exchanged for a post-direct delivery storage position and the post-direct delivery storage position is created by an in-store transfer on the same date as the delivery of the direct delivery grain. Such security shall be furnished on the condition that the licensee will pay for any grain purchased upon demand, not later than fifteen days after the date of the last shipment of any contract. The liability of the surety shall cover purchases made by the grain dealer during the time the bond is in force. A grain dealer’s bond filed with the commission shall be in continuous force and effect until canceled by the surety. The liability of the surety on any bond required by this section shall not accumulate for each successive license period during which the bond is in force; and

(3) File a reviewed or audited fiscal year-end financial statement prepared by an independent certified public accounting firm. If licensing as an individual, the financial statement shall be prepared in accordance with Other Comprehensive Basis of Accountancy, as filed with the board, for a personal financial statement, using historical cost and accrual basis of accounting. If licensing as a partnership, corporation, or limited liability company, the financial statement shall be prepared in accordance with accounting principles generally accepted. The financial statement shall include: (a) A statement of income showing profit or loss; (b) a balance sheet; (c) a statement of cash flow; (d) a statement of proprietor’s capital or retained earnings; (e) the volume and dollar value of the grain purchases the licensee made in Nebraska during the fiscal year; (f) the volume and dollar value of transactions in which direct delivery grain is exchanged for a post-direct delivery storage position and the post-direct delivery storage position is not created by an in-store transfer on the same date as the delivery of the direct delivery grain; and (g) the accounting firm’s certification, assurances, opinions, and comments and the notes with respect to the financial statement. If the volume and dollar value of the grain purchases is not reported, the grain dealer shall file the maximum grain dealer security as required by the Grain Dealer Act.

(4) If an applicant for a grain dealer license is a wholly owned subsidiary of a parent company and such a financial statement is not prepared for the subsidiary, the parent company shall submit its reviewed or audited fiscal year-end financial statement and shall execute an unconditional guarantee agreement as prescribed by the commission.”

Neb. Rev. Stat. §§ 75-903(1)-(4) (2024)

Renewal

” … To procure and maintain a license, each grain dealer shall:

(1) Pay an annual fee of one hundred dollars which shall be due on or before the date established by the commission for each license.”

Neb. Rev. Stat. § 75-903(1) (2024)

Fees

” … each grain dealer shall:

Neb. Rev. Stat. § 75-903(1) (2024)

Posting

N/A

Refusal, Suspension, Revocation

“The commission may, upon complaint filed by it or any person and after a hearing, suspend or revoke the license of any grain dealer for failure to comply with the requirements of the Grain Dealer Act or any rule or regulation adopted and promulgated pursuant to such act. The complaint shall state the grounds for suspension or revocation and shall be filed with the commission pursuant to the commission’s rules of procedure. The commission shall serve the grain dealer with a copy of the complaint and a copy of the order of the commission stating the time for hearing, which shall be at least twenty days from the date of service. If the commission determines that the public good requires it, the commission may, upon the filing of a complaint and without hearing, temporarily suspend a grain dealer’s license pending the determination of the complaint.”

Neb. Rev. Stat. § 75-903.01 (2024)

Contesting License Refusal and Hearing

” … The commission shall serve the grain dealer with a copy of the complaint and a copy of the order of the commission stating the time for hearing, which shall be at least twenty days from the date of service. If the commission determines that the public good requires it, the commission may, upon the filing of a complaint and without hearing, temporarily suspend a grain dealer’s license pending the determination of the complaint.”

Neb. Rev. Stat. § 75-903.01 (2024)

New Mexico

License Required

“Except for a cash buyer, no person shall act as a dealer, broker or packer without first obtaining a license from the board …”

N.M. Stat. Ann. § 76-15-14 (2024)

Application Process

“The board may grant licenses in proper cases upon written application accompanied by the appropriate fee and surety bond. The application shall be on a form prescribed and provided by the board, and shall require information concerning the identity of the owners and officers of the firm to be licensed, and any other information the board deems necessary.”

N.M. Stat. Ann. § 76-15-14 (2024)

Renewal

N/A

Fees

“The fees and bonds required under the Produce Marketing Act [76-15-10 through 76-15-21 NMSA 1978] shall be established by the department of agriculture in an amount not to exceed . . .Dealer: License Fee $50.00, Bond $50,000.”

N.M. Stat. Ann. § 76-15-15 (2024)

Posting

N/A

Refusal, Suspension, Revocation

N/A

Contesting License Refusal and Hearing

N/A

North Carolina

License Required

“No person shall act or hold himself out as a grain dealer without first having obtained a license as herein provided.”

N.C. Gen. Stat. § 106-602 (2024)

“It shall be unlawful for any person to be a grain dealer without securing a license as herein provided.”

N.C. Gen. Stat. § 106-615 (2024)

Application Process

“Every grain dealer before transacting business within the State of North Carolina shall on or before July 1, 1974, and annually on or before June 15 of each year thereafter, file a written application for a license or for the renewal of a license with the Commissioner. The application shall be on a form furnished by the Commissioner and shall contain the following information: (1) The name and address of the applicant and that of its local agent or agents, if any, and the location of its principal place of business within this State. (2) The kinds of grain the applicant proposes to handle. (3) The type of grain business proposed to be conducted.”

N.C. Gen Stat. § 106-603 (2024)

Renewal

“ …[A]nnually on or before June 15 of each year thereafter, file a written application for a license or for the renewal of a license with the Commissioner.”

N.C. Gen Stat. § 106-603 (2024)

“Licenses shall be renewed upon application and payment of renewal fees on or before the fifteenth day of June following the date of expiration of any license hereunder issued. Applications received after June 15 of any year shall be subject to a late filing fee of twenty dollars ($20.00) in addition to other applicable fees.”

N.C. Gen. Stat. § 106-607 (2024)

Fees

“All applications shall be accompanied by an initial or renewal license fee of fifty dollars ($50.00) plus thirty dollars ($30.00) per certificate or decal for each separate buying station or truck and a good and sufficient bond in the amount of one hundred thousand dollars ($100,000) to NC General Statutes – Chapter 106 300 satisfy the initial license application. A fee of five dollars ($5.00) shall be charged for each duplicate license, certificate or decal. “Cash buyers” upon written request to the Commissioner showing proof satisfactory to the Commissioner that the person is a “cash buyer” under this Article shall be exempted from the bonding requirements of this section.”

N.C. Gen. Stat. § 106-604 (2024)

Posting

“The grain dealer license shall be posted in a conspicuous place in the place of business. In the case of a licensee operating a truck or tractor-trailer unit, the licensee is required to have a decal that the license is in effect and that a bond has been filed, such decal to be carried in each truck or tractor-trailer unit used in connection with the purchase of grain from producers.”

N.C. Gen. Stat. § 106-606 (2024)

Refusal, Suspension, Revocation

“The Commissioner may refuse to grant or renew any license, may suspend or may revoke any license upon a showing by substantial and competent evidence of any of the following:

(1) The dealer has suffered a final money judgment to be entered against him and such judgment remains unsatisfied.

(2) The dealer has failed to promptly and properly account and pay for grain.

(3) The dealer has failed to keep and maintain business records of his grain transactions as required by this Article.

(4) The dealer has engaged in fraudulent or deceptive practices in the transaction of his business as a dealer.

(5) The dealer has failed to collect from a producer and remit to the Commissioner of Agriculture such assessments as have been approved by the producers and are required to be collected under the provisions of Article 50 of Chapter 106 of the General Statutes.

(6) The dealer or applicant has been convicted, pled guilty or nolo contendere within three years in any state or federal court of a crime involving moral turpitude.

(7) The dealer has failed either to file the required bond or to keep such bond in force.

(8) The applicant has acted or held himself or herself out as a grain dealer without first having obtained a license under the provisions of this Article.

(9) The dealer has hired a person who has been convicted of a crime involving fraud, deceit, or misrepresentation in any capacity involving the buying or selling of grain, or the handling of payments for grain.

(10) The dealer or applicant has violated any provision of this Article or rules adopted pursuant to this Article.”

N.C. Gen. Stat. § 106-610 (2024)

Contesting License Refusal and Hearing

“(a) A denial, suspension, or revocation of a license under this Article shall be made in accordance with Chapter 150B of the General Statutes.

(b) A license may not be suspended for more than one year. A person whose license is revoked may not obtain another license under this Article until at least two years have elapsed from the date of the final decision revoking the license or, if the decision is appealed, from the date of the final judgment sustaining the revocation.”

N.C. Gen. Stat. § 106-611 (2024)

North Dakota

License Required

“1. Grain buyers that purchase, solicit, merchandise, or take possession of grain in this state shall obtain an annual license from the commissioner. Except as provided in this section, each license expires on July thirty-first of each year.

N.D. Cent. Code § 4.1-59-08(1) (2024)

Application Process

“1. To be eligible to receive an annual license, an applicant shall submit financial documentation to the commissioner verifying the applicant has satisfactory net worth and working capital, as determined by the commissioner.

2. A licensed grain buyer or an applicant for initial licensure shall report balance sheets and income statements to the commissioner annually on written application for initial licensure or license renewal if the applicant purchased up to ten million dollars worth of grain during the previous licensing period, or intends to purchase up to ten million dollars worth of grain during the first year of operation.

3. As a condition of licensure, an applicant shall provide to the commissioner, upon request, any financial record or bank verification release the commissioner deems relevant for the purpose of verifying the financial information of an applicant under this section.

4. As a condition of licensure, a new applicant must:

a. Pass a background check;

b. Have a satisfactory credit score, as determined by the commissioner; and

c. Be a responsible person with a good business reputation, as determined by the commissioner, that:

(1) Is in the grain buying business;

(2) Has knowledge of, and experience with, generally accepted grain buying and handling practices;

(3) Is competent and willing to operate as a grain buyer in accordance with state and federal regulations; and

(4) Has not committed fraud or a criminal offense indicating a lack of business integrity or honesty that undermines the person’s responsibility as a grain buyer.”

N.D. Cent. Code § 4.1-59-07 (2024)

“1. As a condition of licensure, an applicant shall agree to provide the commissioner, upon request, any financial record the commissioner deems relevant for purposes related to:

a. The issuance or renewal of a grain buyer license; or

b. An investigation after issuance or renewal of a grain buyer license.

2. As a condition of licensure, an applicant shall file a records release with the commissioner, authorizing the commissioner to obtain from any source any financial record the commissioner deems relevant for purposes related to:

a. The issuance or renewal of a grain buyer license; or

b. An investigation after issuance or renewal of a grain buyer license.”

N.D. Cent. Code § 4.1-59-06(1)-(2) (2024)

Renewal

” … Except as provided in this section, each license expires on July thirty-first of each year. If a licensee’s initial license is issued effective after May thirty-first, that license expires on July thirty-first of the following year …”

N.D. Cent. Code § 4.1-59-08(1) (2024)

Fees

” … The annual license fee for a grain buyer is:

a. Four hundred dollars for a grain buyer that purchased up to one million dollars worth of grain during the previous licensing period, or intends to purchase up to one million dollars worth of grain during the first year of operation;

b. Eight hundred dollars for a grain buyer that purchased more than one million dollars worth of grain but not more than ten million dollars worth of grain during the previous licensing period, or intends to purchase more than one million dollars worth of grain but not more than ten million dollars worth of grain during the first year of operation; and

c. One thousand two hundred dollars for a grain buyer that purchased more than ten million dollars worth of grain during the previous licensing period, or intends to purchase more than ten million dollars worth of grain during the first year of operation.”

N.D. Cent. Code § 4.1-59-08(1) (2024)

“2. A license renewal application received after July fifteenth must be assessed an additional one hundred dollar fee per receiving location.”

N.D. Cent. Code § 4.1-59-08(2) (2024)

“7. Before a license is effective for a grain buyer, the licensee or applicant shall file a bond with the commissioner for not less than one hundred thousand dollars.”

N.D. Cent. Code § 4.1-59-08(7) (2024)

Posting

“8. A grain buyer must have the buyer’s license in possession at all times.”

N.D. Cent. Code § 4.1-59-08(8) (2024)

Refusal, Suspension, Revocation

“4. The commissioner may refuse to issue or renew or may revoke a license:

a. If the licensee or applicant has been convicted of a criminal offense;

b. If the licensee or applicant has failed to comply with the requirements of this section;

c. If the commissioner has evidence the licensee negotiated in bad faith; or

d. For any other reason as determined by the commissioner.”

N.D. Cent. Code § 4.1-59-08(4) (2024)

Contesting License Refusal and Hearing

“The commissioner may suspend or revoke the license of a grain buyer for cause upon notice and hearing. Notwithstanding any other provision of this chapter, the commissioner shall suspend the license of a grain buyer for failure at any time to maintain a bond.”

N.D. Cent. Code § 4.1-59-12 (2024)

Ohio

License Required

“(A) No person, except as provided in division (C) of this section, shall handle agricultural commodities in this state without first obtaining a handler’s license issued by the director of agriculture under this chapter …”

Ohio Rev. Code § 926.04(A) (2025)

Application Process

“(A) Each person desiring to obtain or renew a handler’s license shall file an application annually with the director of agriculture at such times, on such forms, and containing such information as the director prescribes, including, if applicable, the appointment of a statutory agent under section 926.051 of the Revised Code.”

Ohio Rev. Code Ann. § 926.05(A) (2025)

“(C) The director shall approve or reject each application for a license within fifteen days after receipt thereof, provided that such application is in proper form and contains the information required under division (A) of this section. A rejection of an application shall be accompanied by a statement from the director of the additional requirements necessary for a license. The applicant may resubmit the application without payment of any additional fee.”

Ohio Rev. Code Ann. § 926.05(C) (2025)

“(A) An applicant for a handler’s license or renewal issued under section 926.05 of the Revised Code who does not conduct business at an address in this state at which the applicant usually can be contacted shall include with the application a written appointment of an agent, sometimes referred to as a “statutory agent,” upon whom any process, notice, or demand may be served. The appointment shall be accompanied by a written acceptance of the appointment signed by the agent. The agent may be a natural person who is a resident of this state or a corporation whose principal place of business is located in this state. The appointment shall be on such forms and contain such information as the director of agriculture prescribes. Failure to comply with this division is grounds for rejection of the application under division (C) of section 926.05 of the Revised Code.

(B)(1) If an agent removes from the state or resigns, or if the applicant revokes the agent’s appointment, the applicant immediately shall notify the director in writing not later than thirty days prior to the removal, resignation, or revocation. If an agent dies, the applicant immediately shall notify the director in writing. Prior to the removal, resignation, or revocation and not later than thirty days after the death, the applicant shall appoint another agent and file with the director a written appointment of the agent, along with a written acceptance of the appointment signed by the agent.

(2) If the agent’s address changes from that appearing on the application, the applicant, not later than thirty days prior to the address change, shall file with the director a written statement setting forth the new address, along with any other information the director requests.

(C) Failure to comply with division (B) of this section is grounds for suspension or conditional suspension of a handler’s license, without prior hearing, under section 926.10 of the Revised Code.”

Ohio Rev. Code Ann. §§ 926.06(A)-(C) (2025)

“(A) Each applicant for a handler’s license under section 926.05 of the Revised Code who operates a warehouse shall, as a condition to the granting of such license, file or have on file with the director of agriculture a certificate of insurance evidencing an effective policy of insurance issued by an insurance company authorized to do business in this state insuring in the name of the applicant all agricultural commodities which are in such warehouse for their full market value against loss by fire, internal explosion, lightning, and windstorm. Such policy of insurance shall contain a clause granting a lien in favor of the state for the benefit of the depositors of agricultural commodities in such warehouse, as their interests may appear on the records of the handler.”

Ohio Rev. Code Ann. § 926.07(A) (2025)

Renewal

“(D) A handler’s license shall expire on the date prescribed by rule of the director. Whenever the director considers it advisable to cancel the unexpired portion of an outstanding license in order to renew it according to a new or existing system of expiration dates, the director shall refund to the handler the unexpired portion of the fees paid under division (B) of this section. Whenever the director issues an initial license on a date that does not conform to the existing system, the director shall issue the license for a period of time, not less than six nor more than eighteen months, that makes the date conform to the existing system. The application fee for that initial license shall be proportionate to the fee for a one-year license.

(E) An application for renewal of a handler’s license shall be filed with the director not later than thirty days before the current license expires. An applicant who fails to file a renewal application in time shall pay a late fee of one dollar for each day the application is late or fifteen dollars, whichever is greater. A renewal license shall not be issued until a late fee that is due has been paid.”

Ohio Rev. Code Ann. §§ 926.05(D)-(E) (2025)

Fees

“(B) Each application for a license or license renewal shall be accompanied by an application fee of two hundred dollars for the first facility operated by the applicant plus one hundred dollars for each additional facility operated by the same applicant and by an examination fee, established by rule of the director pursuant to section 926.02 of the Revised Code, for each facility operated by the applicant. “Facility” means all warehouse storage located on one premises, including any additional warehouse storage located within one thousand yards of that premises. The director may charge fees for examinations in an amount not to exceed those fees charged by the United States department of agriculture for comparable examinations.

The director shall deposit all fees collected under this section in the commodity handler regulatory program fund created in section 926.19 of the Revised Code.”

Ohio Rev. Code Ann. § 926.05(B) (2025)

Posting

“Each licensed agricultural commodity handler shall keep posted in a location at his facility where it shall be accessible for observation and reading by persons marketing agricultural commodities:

(A) His license as an agricultural commodity handler;

(B) The certificates of persons who are certified under section 926.30 of the Revised Code as testers of agricultural commodities delivered to the handler.”

Ohio Rev. Code Ann. § 926.12 (2025)

Refusal, Suspension, Revocation

“(F) The director, with the approval of the commodity advisory commission, may, except as provided in division (G) of this section, revoke or refuse to issue or renew a handler’s license if any of the following occurred within five years before the application for the license or renewal was filed:

(1) The applicant, or the spouse, parent, sibling, or child of the applicant, or a manager employed by the applicant, or any other individual materially involved in the agricultural commodity handling business of the applicant was a principal in a receivership or insolvency that resulted in losses to creditors or to the agricultural commodity depositors fund established in section 926.16 of the Revised Code;

(2) The applicant pled guilty to or was convicted of any felony or charge of embezzlement under the laws of this state, any other state, or of the United States;

(3) The applicant made a delivery of commodities not authorized under this chapter;

(4) The applicant’s license under the “United States Warehouse Act,” 39 Stat. 486 (1916), 7 U.S.C. 241, as amended, was revoked or canceled due to a violation of that act.”

Ohio Rev. Code Ann. § 926.05(F) (2025)

“The director of agriculture, by order, may refuse to grant or may suspend or conditionally suspend a handler’s license, without prior hearing, when the director determines that there is reasonable cause to believe that the applicant or licensee:

(A) Has failed to maintain the insurance coverage required under section 926.07 of the Revised Code;

(B) Has failed to maintain accurate and complete records and accounts as required under section 926.11 of the Revised Code;

(D) Has refused to allow the director or the director’s authorized representative to examine, at a reasonable time, the applicant’s or licensee’s accounting records, accounts, agricultural commodity inventories, or warehouse;

(E) Does not possess sufficient agricultural commodities to cover the outstanding receipts or tickets issued or assumed by the applicant or licensee under bailment agreements;

(F) Has issued a receipt in violation of this chapter or any rules adopted under it;

(G) Does not have the net assets specified in division (B) of section 926.06 of the Revised Code or has failed to obtain a bond or other protection for any deficiency in required net assets as provided in that division;

(H) Does not have the obligations for agricultural commodities purchased under delayed price agreements secured or represented as required under division (B) or (C) of section 926.29 of the Revised Code;

(I) Does not submit financial statements that comply with the requirements of division (C) of section 926.06 of the Revised Code within the applicable time period specified in that division;

(J) Does not notify the director of a statutory agent’s change of address or of the death, removal, resignation, or revocation of the appointment of a statutory agent or does not appoint another agent in accordance with section 926.051 of the Revised Code …”

Ohio Rev. Code Ann. § 926.10 (2025)

Contesting License Refusal and Hearing

” … The applicant or licensee to whom a denial, suspension, or conditional suspension order is issued shall be afforded a hearing in accordance with Chapter 119. of the Revised Code, after which the director shall issue or deny the license applied for in the pending application or reinstate or revoke the suspended or conditionally suspended license. The director may suspend, conditionally suspend, or revoke a license after a hearing held in accordance with Chapter 119. of the Revised Code for any other violations of this chapter or any rules adopted under it.

The director shall cause a notice to be posted on the property of a person whose license has been suspended, conditionally suspended, or revoked stating the limitations or restrictions imposed on the person in the handling of agricultural commodities as a result of the suspension, conditional suspension, or revocation. The notice shall not be removed from the property without written authorization from the director.

If a handler’s license is revoked, the handler immediately shall notify, in a manner determined by the director, all parties that are storing agricultural commodities in the handler’s warehouse and all holders of receipts issued by the handler, if known. The handler shall liquidate the commodities in the manner determined by the director.”

Ohio Rev. Code Ann. § 926.10 (2025)

South Carolina

License Required

“It is unlawful for a dealer in agricultural products to engage in that business without a state license issued by the commissioner. This requirement applies to all dealers in agricultural products who are not exempted by Sections 46-41-20 and 46-41-25.

(1) A person violating the provisions of this section is guilty of a misdemeanor for a first offense and, upon conviction, must be fined not less than one thousand dollars or imprisoned not more than three years, or both.

(2) Conviction for a second or subsequent offense is a felony and the person must be imprisoned not more than five years and fined not more than five thousand dollars.”

S.C. Code Ann. § 46-41-30 (2024)

Application Process

“Every dealer in agricultural products, desiring to transact business within the State, shall, prior to transacting such business, file an application for a license with the Commissioner … The application shall be on a form furnished by the Commissioner and, together with such other information as the Commissioner shall require, shall state:

(1) The kind of agricultural products the applicant proposes to handle;

(2) The full name or title of the applicant, or if the applicant be an association or copartnership, the name of each member of such association or copartnership, or if the applicant be a corporation, the name of each officer of the corporation;

(3) The name of the local agent of the applicant, if any;

(4) The cities, and towns, within which places of business of the applicant will be located, together with the street or mailing address of each.”

S.C. Code Ann. § 46-41-40 (2024)

Renewal

” … License shall be renewed annually on its anniversary date …”

S.C. Code Ann. § 46-41-40 (2024)

Fees

“Each application for a dealer’s license under Section 46-41-40 or affidavit registered and filed under Section 46-41-25 shall be subject to an annual fee for the principal place of business for a dealer in agricultural products of fifty dollars. For each additional place of business named in the application, there shall be an additional ten dollars annual fee.

Should any dealer in agricultural products fail, or neglect to apply and qualify for the renewal of a license, or register an affidavit of exception, on or before the date of expiration, a fine of one hundred dollars shall apply and be added to the original fee and shall be paid by the dealer before the renewal may be issued. An additional fine of one hundred dollars shall be applied for each month or part of a month beyond the first month after expiration.”

S.C. Code Ann. § 46-41-50 (2024)

“(A) Before any license shall be issued the applicant shall make and deliver to the commissioner a surety bond or equivalent security in an amount of either twenty-five thousand, fifty thousand, or one hundred thousand dollars as determined by the method set forth below, executed by a surety corporation authorized to transact business in the State or provided by equivalent security approved by the commissioner with the advice of the State Treasurer. The amount of the bond required is determined based upon ten percent of the applicant’s annual business. If ten percent of annual business is twenty-five thousand dollars or less, the applicant must obtain a twenty-five thousand dollar bond. If ten percent of annual business is fifty thousand dollars or less, a fifty thousand dollar bond is required. If ten percent of annual business is more than fifty thousand dollars, a one hundred thousand dollar bond is required. The bond or equivalent security shall be upon a form prescribed or approved by the commissioner and shall be conditioned to secure the faithful accounting for any payment to producers, their agents or representatives, of the proceeds of all agricultural products handled or sold by such dealer.

(B) The amount of the bond or equivalent security shall, upon the order of the commissioner at any time, be increased, if in his discretion the commissioner finds that an increase is warranted by the volume of agricultural product being handled by the principal or maker of the bond or equivalent security. In the same manner, the amount of the bond or equivalent security may be decreased when a decrease in volume of products handled warrants such decrease in bond or equivalent security. The provisions contained in this section shall apply to any bond or equivalent security, regardless of the anniversary date of its issuance, expiration, or renewal.

(C) In order to effectuate the purposes of this section, the commissioner or his agents may require from any licensee verified statements of the volume of his business, and failure to furnish such statement or make and deliver a new or additional bond or equivalent security shall be cause for suspension of license. If, at a hearing after reasonable notice, the commissioner finds such failure to be wilful, the license may be revoked.”

S.C. Code Ann. § 46-41-60 (2024)

Posting

N/A

Refusal, Suspension, Revocation

“The Commissioner may decline to grant a license or may suspend or revoke a license already granted if he is satisfied that the applicant or licensee has either:

(1) Suffered a money judgment to be entered against him upon which execution has been returned unsatisfied; or

(2) Made false charges for handling or services rendered; or

(3) Failed to account promptly and properly, or to make settlements with any producer; or

(4) Made any false statement or statements as to condition, quality or quantity of goods received or held for sale when he could have ascertained the true condition, quality or quantity by reasonable inspection; or

(5) Made any false or misleading statement as to market conditions or service rendered; or

(6) Been guilty of a fraud in the attempt to produce or the procurement of a license; or

(7) Directly or indirectly sold agricultural products received on consignment or on a net return basis for his own account, without prior authority from the producer, consigning such products, or without notifying such producer; or

(8) Failed to remain acceptable for coverage under the surety bond required by Section 46-41-60 or to cooperate with the bond provider.”

S.C. Code Ann. § 46-41-120 (2024)

Contesting License Refusal and Hearing

“(A) Before the commissioner refuses to issue a license or revokes a license he shall give ten days’ notice, by registered mail, to the applicant or licensee of a time and place of hearing. At the hearing the applicant or licensee must be allowed to appear in person or by or with counsel and to produce witnesses. If the commissioner finds the applicant or licensee guilty of any of the acts provided in Section 46-41-120 or finds that the grain dealer has not paid the assessment prescribed by Section 46-40-60(B) of the Grain Dealers Guaranty Fund, the commissioner may refuse, suspend, or revoke the license and shall give immediate notice of his action to the applicant or licensee.

(B) The commissioner may temporarily suspend and take possession of a license simultaneously with the institution of proceedings under this section or Section 46-41-70 if he finds there is imminent danger to public welfare.”

S.C. Code Ann. § 46-41-130 (2024)

South Dakota

License Required

“Before transacting the business of a grain buyer in this state, a person shall obtain a grain buyer license from the commission.

A violation of this section is a Class 5 felony if the person holds himself or herself out to be a grain broker and a Class 1 misdemeanor in all other cases. Each purchase of grain without a license is a separate offense.

A grain buyer transacting business without a license may be enjoined upon complaint of the commission.

The commission may assess a civil fine against an unlicensed grain buyer in the amount of five thousand dollars for each purchase of grain, up to a maximum fine of fifty thousand dollars per licensing period, as set forth in § 49-45-3.

For purposes of this section, the term, purchase of grain, means a transaction evidenced by the issuance of a uniform scale ticket or receipt, as described in § 49-45-10.1.”

S.D. Codified Laws § 49-45-1 (2024)

Application Process

“An application for a grain buyer license shall be filed with the commission and shall be in a form prescribed by the commission. The application shall set forth the name of each owner or principal in the management of the business and shall contain financial information depicting the financial condition of the business at the time of application. If the applicant is a corporation, the application shall include the name of the president, secretary, and treasurer of the corporation. The application shall also include the location of the principal office or place of business and any additional place of business of the applicant. The application shall contain the affirmation statement set forth in § 22-29-9.1. The application shall be signed by the owner, managing partner, or chief executive officer of the applicant and shall be notarized.

Upon receipt of an application and sufficient bond as required by § 49-45-9, the commission may grant the license applied for or may, for good cause shown and after notice and an opportunity for hearing, deny the issuance of the license.

If a grain buyer has more than one grain buying facility in the same municipality, only one license is required for all the grain buying facilities.”

S.D. Codified Laws § 49-45-7 (2024)

“An applicant may apply for a Class A grain buyer’s license or a Class B grain buyer’s license. No grain buyer with a Class B grain buyer’s license may purchase grain in excess of five million dollars for the annual licensed year or enter into voluntary credit sale contracts. The commission shall require an applicant for a Class A grain buyer’s license to submit a more detailed review of its financial condition than an applicant for a Class B grain buyer’s license.”

S.D. Codified Laws § 49-45-7.1 (2024)

“A grain buyer with a Class A license shall keep all company owned grain in the grain buyer’s possession insured at current market value of the grain against loss by fire, windstorm, and extended coverage risks. The grain buyer shall furnish the commission with proof of the insurance when the grain buyer applies for a license. A grain buyer with a Class A license shall submit a quarter-ending balance sheet to the commission for inspection within thirty days of the end of each quarter. The balance sheet reports shall be based on each grain buyer’s fiscal year. A violation of this section is a Class 1 misdemeanor.”

S.D. Codified Laws § 49-45-22 (2024)

Renewal

“Each license issued pursuant to § 49-45-1 expires on the next June thirtieth following the issuance of the license. The commission may at any time for cause shown revoke or suspend any grain buyer license. However, the grain buyer has the right of appeal from such decisions as provided by chapter 1-26 for the review of final decisions of the commission.”

S.D. Codified Laws § 49-45-3 (2024)

Fees

“The application for a grain buyer license shall be accompanied by a fee of two hundred seventy-five dollars for each municipality or location at which the grain buyer receives grain. If the grain buyer making application for a license also holds a license to operate a public grain warehouse or is, at the same time, making application to operate a public grain warehouse under chapter 49-43, the fee imposed by this section is waived.”

S.D. Codified Laws § 49-45-8 (2024)

Before any grain buyer license is issued by the commission, the applicant must file with the commission a bond conditioned to secure the faithful performance of the applicant’s obligations as a grain buyer and the applicant’s full and unreserved compliance with the laws of this state and the rules of the commission, relating to the purchase of grain by the grain buyer. The bond is for the specific purpose of protecting persons selling grain to the grain buyer. However, the bond may not benefit any person entering into a voluntary credit sale with a grain buyer. Any person who does business as a grain buyer without a bond is guilty of a Class 1 misdemeanor. Each day a person conducts the business of a grain buyer without a bond is a separate offense.

The amount of the bond for a Class A or Class B grain buyer’s license must be based on a rolling average of the dollar amount of grain purchased by the applicant in this state during the last three license years. For a new grain buyer, the first year’s bond must be based on projected purchases. For a grain buyer with less than three years of experience as a grain buyer, the bond must be based on the average actual purchases made by the grain buyer in all of its previous years as a grain buyer or projected purchases, whichever amount is higher. The bond applies to all grain purchases for all of the grain buyer’s business locations.

The amount of the bond for a Class A grain buyer’s license is:

Dollar Amount of Grain Purchased Bond Requirement

Less than $2,000,001 $ 50,000

$2,000,001–$5,000,000 $ 100,000

$5,000,001-$10,000,000 $ 150,000

$10,000,001-$20,000,000 $ 200,000

$20,000,001-$30,000,000 $ 250,000

$30,000,001-$40,000,000 $ 300,000

$40,000,001-$55,000,000 $ 350,000

$55,000,001-$70,000,000 $ 400,000

$70,000,001-$85,000,000 $ 450,000

$85,000,001-$100,000,000 $ 500,000

Bond requirements are increased twenty-five thousand dollars for each additional ten million dollars in purchases above one hundred million dollars.

The amount of the bond for a Class B grain buyer’s license is:

Dollar Amount of Grain Purchased Bond Requirement

Less than $2,000,001 $ 50,000

$2,000,001–$5,000,000 $ 100,000

The grain buyer may stipulate to a higher bond amount requested by the commission or may post additional security in another form.

S.D. Codified Laws § 49-45-9 (2024)

Posting

“The commission shall supervise the business of grain buyers in this state and administer the laws in relation thereto. The commission may promulgate rules, pursuant to chapter 1-26, concerning:

…

(2) Requirements for posting grain buyer’s licenses;

…”

S.D. Codified Laws § 49-45-6(2) (2024)

Refusal, Suspension, Revocation

S.D. Codified Laws § 49-45-3 (2024)

“The commission may immediately suspend the license of a grain buyer and the grain buyer shall surrender the license to the commission if:

(1) The grain buyer refuses, neglects, or is unable, upon proper demand, to redeem any scale ticket issued by the grain buyer, through redelivery or cash payment;

(2) The grain buyer refuses, neglects, or is unable to provide a bond in an amount required by the commission;

(3) The commission has knowledge of any act of insolvency, including the filing of a petition in bankruptcy naming the grain buyer as debtor; or

(4) The grain buyer refuses to submit to an inspection or cooperate with the lawful requests of a commission inspector, including requests for access to and copies of the books and records of the grain buyer …“

S.D Codified Laws § 49-45-16 (2024)

Contesting License Refusal and Hearing

S.D. Codified Laws § 49-45-3 (2024)

” … Within fifteen days the grain buyer may request a hearing pursuant to chapter 1-26 to determine if the license should be revoked. If no request is made within fifteen days, the commission shall revoke the license.”

S.D Codified Laws § 49-45-16 (2024)

Tennessee

License Required

“(a) No person shall engage in business as a commodity dealer or warehouseman in the state of Tennessee without a license therefor issued by the department.”

Tenn. Code Ann. § 43-32-105(a) (2024)

Application Process

“(b) Application for a license to engage in business as a commodity dealer or warehouseman shall be filed with the department and shall contain information and be in a form as prescribed by the department by lawfully promulgated rule.

(c) The application for an initial license may be filed at any time prior to beginning business as a commodity dealer or warehouseman. However, the license shall terminate ninety (90) days after the close of the commodity dealer’s or warehouseman’s fiscal year.”

Tenn. Code Ann. §§ 43-32-105(b)-(c) (2024)

“(e) For all commodity dealer or warehouseman licenses, with the exception of incidental commodity dealers, nonsecured, the application shall be accompanied by a financial statement setting forth information as prescribed by the commissioner by lawfully promulgated rule.”

Tenn. Code Ann. § 43-32-105(e) (2024)

Renewal

“(d) The application for a renewal of a license shall be filed with the department annually within ninety (90) days after the close of the commodity dealer’s or warehouseman’s last completed fiscal year or within such further time, not exceeding sixty (60) days, as the department, upon application, may allow.”

Tenn. Code Ann. § 43-32-105(d) (2024)

Fees

“(f) The application for a license to operate as a commodity dealer or warehouseman, as defined in this chapter, or a renewal thereof, shall be accompanied by a filing fee of one hundred fifty dollars ($150). The application for a license to operate as an incidental commodity dealer as defined in this chapter, or a renewal thereof, shall be accompanied by a filing fee of fifty dollars ($50.00).”

Tenn. Code Ann. § 43-32-105(f) (2024)

“(a) With the exception of incidental commodity dealers, nonsecured, every person licensed as a commodity dealer or warehouseman shall have a surety bond and a fire and extended coverage insurance policy, or proof thereof, both of which shall be noncancellable for the term of the license.”

Tenn. Code Ann. § 43-32-106(a) (2024)

Posting

“(g) The license or renewal thereof issued by the department under this section shall be posted in the principal office of the licensee in this state. A certificate shall be posted in each location listed on a licensee’s application where the licensee engages in the business of buying or storing commodities. In the case of a licensee operating a truck or tractor trailer unit, the licensee is required to have a certificate that the license is in effect, and that a bond or certificate of deposit has been filed, carried in each truck or tractor trailer unit used in connection with the purchase of commodities from producers. Upon request of a licensee and payment of the fee therefor, the department shall issue to the licensee a certificate that a license has been issued or renewed and a bond filed as required by this chapter.

(h) The license issued to an incidental commodity dealer, nonsecured shall clearly state: “Producers are not eligible to receive indemnification from the Tennessee grain indemnity fund if payment is not made for commodities delivered to this dealer.” Additionally, this statement shall also be posted adjacent to the license issued to the dealer in the location required by this part. The notice shall be in print no smaller than two inches (2″) in letter height. This statement shall also be placed on the receipt or scale ticket issued to the seller, with a place for the seller’s signature provided on each receipt or scale ticket. The signature of the seller or the seller’s representative shall be affixed to each receipt or scale ticket.”

Tenn. Code Ann. §§ 43-32-105(g)-(h) (2024)

Refusal, Suspension, Revocation

“(b) If a commodity dealer or warehouseman violates any of the provisions of this chapter, that person’s license and certificate of license may be removed from that person’s premises by any department employee charged with the enforcement of this chapter and returned to the department. This removal shall constitute a suspension of the license, and the licensee may request a hearing before the commissioner within ten (10) days in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

(c) If the department finds that a commodity dealer is licensed as a commodities warehouse under the United States Warehouse Act and does not satisfy the requirements of part 2 of this chapter, the commissioner shall suspend or revoke the dealer’s license until such time as the commodities warehouse complies with the Tennessee Commodity Producer Indemnity Act, compiled in part 2 of this chapter.”

Tenn. Code Ann. §§ 43-32-107(b)-(c) (2024)

“(a) With the exception of incidental commodity dealers, nonsecured, failure of a commodity dealer or warehouseman to file a bond or certificate of deposit and to keep the bond or certificate of deposit in force or to maintain assets adequate to assure payment to producers for commodities purchased from or stored for them shall be grounds for the suspension or revocation of a license issued under this chapter.”

Tenn. Code Ann. § 43-32-109(a) (2024)

Contesting License Refusal and Hearing

Tenn. Code Ann. § 43-32-107(b) (2024)

“(d) If any court of competent jurisdiction issues any order restraining, overturning or modifying any order of the department that suspends or revokes a commodity dealer’s or warehouseman’s license, the department, its officers, employees and agents shall be held harmless from any liabilities or financial obligations arising out of the operations of the commodity dealer or warehouseman while operating under the court order.”

Tenn. Code Ann. § 43-32-107(d) (2024)

Virginia

License Required

“A. No person shall act as a grain dealer without first having obtained a license.”

Va. Code § 3.2-4754(A) (2024)

Application Process

“B. Every grain dealer proposing to transact business within the Commonwealth shall annually on or before January 1, file a written application for a license or for the renewal of a license with the Commissioner. The application shall be on a form furnished by the Commissioner and shall contain the following information and such other relevant information as the Commissioner shall require:

1. The name and address of the applicant and that of its local agent or agents, if any, and the location of its principal place of business within the Commonwealth;

2. The kinds of grain the applicant proposes to handle; and

3. The type of grain business proposed to be conducted.”

Va. Code § 3.2-4754(B) (2024)

Renewal

1. The name and address of the applicant and that of its local agent or agents, if any, and the location of its principal place of business within the Commonwealth;

2. The kinds of grain the applicant proposes to handle; and

3. The type of grain business proposed to be conducted.”

Va. Code § 3.2-4754(B) (2024)

Fees

“A. All applications a for license or license renewal shall be accompanied by a license fee of $40, $10 for each branch location and agent, and a good and sufficient bond in an amount of $2,000 or an amount equal to the maximum amount of gross business done in any month in the Commonwealth during the preceding year by the applicant, whichever is greater, but in no event shall the amount of bond required exceed $40,000. An irrevocable letter of credit for the full amount of required bond may be submitted in lieu of a surety bond. A person, who upon written request shows proof satisfactory to the Commissioner that he is a cash buyer, shall be exempted from the bonding or irrevocable letter of credit requirements. The exemption shall be granted within 20 days of the receipt of the exemption request, unless the Commissioner requests the dealer to provide additional necessary information or unless the request is denied.

B. Any licensed grain dealer who fails to apply and qualify for the renewal of a license on or before the date of expiration, shall pay a penalty of $25, which shall be added to the original license fee and shall be paid by the applicant before the renewal may be issued.”

Va. Code Ann. § 3.2-4755(A)-(B) (2024)

Posting

N/A

Refusal, Suspension, Revocation

“The Commissioner may refuse to grant or renew any license, or revoke any license if he finds that the grain dealer:

1. Has not satisfied a final money judgment entered against him;

2. Has failed to promptly and properly account and pay for in full within 10 calendar days of the receipt of the grain from the producer, unless a written agreement signed by both parties expressly provides or permits otherwise. The prompt and proper accounting of and payment for grain shall include the following:

a. Any grain dealer who purchases grain from a producer shall deliver to the producer or his duly authorized representative the full amount of the purchase price, within the time specified in this subdivision. Payment shall occur either by transferring a check in the full amount to the producer or his authorized agent at the point of transfer of possession, wiring transfer funds to the producer’s account for the full purchase price, or by depositing a check in the United States mail for the full amount properly addressed to the producer and in an envelope postmarked within the time specified in this section.

b. Any grain dealer who sells grain deposited in his grain storage facility by a producer shall promptly notify the producer or his duly authorized representative of the sale, and shall deliver to the producer or his authorized representative the full amount of the purchase price within the time specified in this subdivision. The time limit may be extended for good cause and with the written consent of the depositor. Nonpayment by the purchaser shall not constitute “good cause” under this section.

c. Any grain dealer who enters into a deferred payment, price later, or contract transaction with a producer shall have the transaction in writing and signed by both parties and shall deliver a copy of the transaction to the producer or his duly authorized representative. Upon conclusion of the written agreement transaction, the dealer shall deliver to the producer or his authorized representative the full amount of the purchase price within the time specified in this subdivision;

3. Has failed to maintain business records of his grain transactions as required;

4. Has failed to post current discounts where they can readily be reviewed by the producer or his representative;

5. Upon the request of the producer or his representative, has failed to notify the producer or his representative at the time of delivery of all discounts and deductions applied;

6. Has failed to file annually with the Commissioner the discount schedules for each grain purchased, including the effective date of the purchase, or has failed to make available upon request of the Commissioner during normal business hours any changes in the discount schedules that have been filed;

7. Has engaged in fraudulent or deceptive practices in the transaction of his business as a dealer;

8. Has failed to state on producers receipts the type of grain transactions that shall include storage, grain bank, grain exchange, price later, deferred payment, and contract;

9. Has failed to maintain a bond or letter of credit as required; or

10. Has violated any regulation adopted by the Board.”

Va. Code Ann. § 3.2-4760 (2024)

Contesting License Refusal and Hearing

“Before the Commissioner refuses or revokes a license, he shall give 10 days’ notice by registered mail to the applicant or licensee of the time and place of hearing. The applicant or licensee may appear at the hearing in person, or with counsel and produce witnesses. If the Commissioner finds the applicant or licensee in violation of any act provided in § 3.2-4760, he may refuse, suspend, or revoke the license and shall give immediate notice of his action to the applicant or licensee.”

Va. Code Ann. § 3.2-4761 (2024)

Washington

License Required

“It is unlawful for any person to operate as a grain dealer in the state of Washington without first having obtained an annual license from the department. This chapter does not apply to a grain dealer that is licensed for dealing in agricultural commodities under federal law.”

Wash. Rev. Code § 22-09-035 (2024)

Application Process

“Application for a license to operate as a grain dealer under the provisions of this chapter shall be on a form prescribed by the department and shall include:

(1) The full name of the person applying for the license and whether the applicant is an individual, partnership, association, corporation, or other entity;

(2) The full name of each member of the firm or partnership, or the names of the officers of the company, society, cooperative association, or corporation;

(3) The principal business address of the applicant in the state and elsewhere;

(4) The name or names of the person or persons in this state authorized to receive and accept service of summons and legal notices of all kinds for the applicant;

(5) Whether the applicant has also applied for or has been issued a warehouse license under this chapter;

(6) The location of each business location from which the applicant intends to operate as a grain dealer in the state of Washington whether or not the business location is physically within the state of Washington, and the location of the headquarters or main office of the application;

(7) A financial statement to determine the net worth of the applicant to determine whether or not the applicant meets the minimum net worth requirements established by the director under chapter 34.05 RCW. However, if the applicant is a subsidiary of a larger company, corporation, society, or cooperative association, both the parent company and the subsidiary company must submit a financial statement to determine whether or not the applicant meets the minimum net worth requirements established by the director under chapter 34.05 RCW. All financial statement information required by this subsection shall be confidential information not subject to public disclosure;

(8) Whether the applicant has previously been denied a grain dealer or warehouse operator license or whether the applicant has had either license suspended or revoked by the department;

(9) Any other reasonable information the department finds necessary to carry out the purpose and provisions of this chapter.”

Wash. Rev. Code § 22-09-45 (2024)

“Except as provided in RCW 22.09.405(2), no warehouse or grain dealer license may be issued to an applicant before a bond, certificate of deposit, or other security is given to the department as provided in RCW 22.09.090, or in RCW 22.09.095. No warehouse license may be issued to an applicant before a certificate of insurance as provided in RCW 22.09.110 has been filed with the department. Grain dealers may be exempted by rule from the bonding requirement if the grain dealer does not do more than one hundred thousand dollars in business annually and makes payments solely in coin or currency of the United States at the time of obtaining possession or control of grain. However, a cashier’s check, certified check, or bankdraft may be considered as cash for purposes of this section.”

Wash. Rev. Code § 22-09-060 (2024)

Renewal

” … The license expires automatically on a date set by rule by the director unless it has been revoked, canceled, or suspended by the department before that date. Fees shall be prorated where necessary in order to accommodate staggered renewal of a license or licenses.

Wash. Rev. Code § 22.09.075 (2024)

Fees

“An application for a license to operate as a grain dealer shall be accompanied by a license fee of one thousand seven hundred fifty dollars. The license fee for exempt grain dealers shall be five hundred dollars.

If an application for renewal of a grain dealer or exempt grain dealer license is not received by the department before the renewal date or dates established by the director by rule, a penalty of fifty dollars for the first week and one hundred dollars for each week thereafter shall be assessed and added to the original fee and shall be paid by the applicant before the renewal license may be issued. This penalty does not apply if the applicant furnishes an affidavit certifying that he or she has not acted as a grain dealer or exempt grain dealer after the expiration of his or her prior license.

Wash. Rev. Code § 22-09-055 (2024)

Posting

“The department shall issue a grain dealer license to an applicant upon its determination that the application is in its proper form and upon approval of the matters contained on the application and upon a showing that the applicant has complied with the provisions of this chapter and rules adopted hereunder. The licensee shall immediately upon receipt of the license post it in a conspicuous place in its principal place of business …”

Wash. Rev. Code § 22.09.075 (2024)

Refusal, Suspension, Revocation

The department is authorized to deny, suspend, or revoke a license after a hearing in any case in which it is determined that there has been a violation or refusal to comply with the requirements of this chapter, rules adopted hereunder, or the provisions of Article 7 of Title 62A RCW as enacted or hereafter amended …”

Wash. Rev. Code § 22.09.080 (2024)

Contesting License Refusal and Hearing

” … All hearings for the denial, suspension, or revocation of a license shall be subject to chapter 34.05 RCW (Administrative Procedure Act) as enacted or hereafter amended.”

Wash. Rev. Code § 22.09.080 (2024)

West Virginia

License Required

“A person engaged in the business of a commission merchant in this state dealing in the sale, purchase, or consignment of agricultural products shall before carrying on such business procure a license from the commissioner …”

W. Va. Code § 19-3-1 (2024)

Application Process

” … Application for such license shall be made on forms prescribed by the commissioner and shall be accompanied by a fee of $10 …”

W. Va. Code § 19-3-1 (2024)

“Prior to the issuance of a license for commission merchant, the applicant shall execute and deliver to the commissioner a surety bond conditioned as the commissioner may require and acceptable to him payable to the State of West Virginia, for the benefit of consignors who have been wronged or damaged by fraud or fraudulent practices of the commission merchant and so adjudged by a court of competent jurisdiction and who shall have the right of action for damage for compensation against such bond.”

W. Va. Code § 19-3-2 (2024)

Renewal

” … Such license shall be renewed annually on or before July 1,.”

W. Va. Code § 19-3-1 (2024)

Fees

” … Application for such license … shall be accompanied by a fee of $10 …”

W. Va. Code § 19-3-1 (2024)

Posting

N/A

Refusal, Suspension, Revocation

“The commissioner may refuse to grant a license or may revoke a license already granted when he is satisfied that the applicant or licensee has:

(1) Failed to satisfy a money judgment properly served against him

(2) Made false, fraudulent or improper charges or returns for the handling, sale, storage, or other services in connection with agricultural products;

(3) Failed or refused to render an account of sales or make prompt settlement thereon;

(4) Knowingly made false or misleading statements as to the condition, quality, or quantity of agricultural products received, handled, stored, or held by him for sale;

(5) Made false or misleading statements concerning market conditions, with the intent to deceive;

(6) Combined or conspired to fix prices either directly or indirectly;

(7) Purchased for his own account agricultural products received by him upon consignment without prior notice to the consignor in writing, or at an agreed price fixed by the consignor;

(8) Made fictitious sales or has been guilty of collusion to defraud the consignor;

(9) Has reconsigned agricultural products without the written consent of the consignor or without notice to the consignor that all or part of his shipment has been reconsigned;

(10) Sold consigned goods to another person, exchange, association, or corporation in which the consignee has a financial interest without notice in writing to the consignor of such interest.”

W. Va. Code § 19-3-3 (2024)

Contesting License Refusal and Hearing

N/A

Wisconsin

License Required

“(1) License required. Except as provided in sub. (2), no grain dealer may procure producer grain in this state without a current annual license from the department.

(2) Exempt grain dealers. The following grain dealers are not required to hold a license under this section, but may volunteer to be licensed:

(a) A grain dealer who pays cash on delivery for all producer grain.

(b) A grain dealer who buys producer grain solely for the grain dealer’s own use as feed or seed and who spends less than $400,000 per license year for that grain.”

Wis. Stat. § 126.11(1)(2) (2024)

Application Process

“(3) License application. A grain dealer shall apply for an annual license under this section in writing, on a form provided by the department. An applicant shall provide all of the following:

(a) The applicant’s legal name and any trade name under which the applicant proposes to operate as a grain dealer.

(b) A statement of whether the applicant is an individual, corporation, partnership, cooperative, unincorporated cooperative association, limited liability company, trust, or other legal entity. If the applicant is a corporation, a cooperative, or an association, the applicant shall identify each officer of the corporation or cooperative. If the applicant is a partnership, the applicant shall identify each partner.

(c) The mailing address of the applicant’s primary business location and the name of a responsible individual who may be contacted at that location.

(d) The street address of each business location from which the applicant operates in this state as a grain dealer and the name of a responsible individual who may be contacted at each location that is staffed.

(e) All license fees and surcharges required under sub. (4).

(g) A financial statement if required under s. 126.13 (1) and not yet filed.

(h) Other relevant information required by the department.”

Wis. Stat. § 126.11(3) (2024)

Renewal

“(2m) License terms. A license under this section expires on the August 31 following its issuance. No person may transfer or assign a license issued under this section.”

Wis. Stat. § 126.11(2m) (2024)

Fees

“(4) License fees and surcharges. A grain dealer applying for an annual license under this section shall pay the following fees and surcharges in the amounts that the department specifies by rule:

(a) A nonrefundable basic license fee.

(b) A supplementary license fee based on the volume of grain reported by the grain dealer under sub. (9) (d), less any credit provided under sub. (6).

(c) A supplementary license fee for each truck, in excess of one truck, that the grain dealer uses to haul grain in this state.

(d) A license surcharge if the grain dealer files a financial statement under s. 126.13 (1) that is not an audited financial statement.

(e) A license surcharge if the department determines that, within 365 days before submitting the license application, the applicant operated as a grain dealer without a license in violation of sub. (1). The applicant shall also pay any license fees, license surcharges, and fund assessments that are still due for any license year in which the applicant violated sub. (1).

(f) A license surcharge if during the preceding 12 months the applicant failed to file an annual financial statement required under s. 126.13 (1) (b) by the deadline specified in s. 126.13 (1) (c).

(g) A license surcharge if a renewal applicant fails to renew a license by the license expiration date of August 31. This paragraph does not apply to a grain dealer who is exempt under sub. (2) and is voluntarily licensed.”

Wis. Stat. § 126.11(4) (2024)

“(8) No license without full payment. The department may not issue an annual license under sub. (1) until the applicant pays all license fees and surcharges identified in the department’s statement under sub. (7). The department shall refund a fee or surcharge paid under protest if upon review the department determines that the fee or surcharge is not applicable.”

Wis. Stat. § 126.11(8) (2024)

Posting

“(11) License displayed. A grain dealer licensed under sub. (1) shall prominently display a copy of that license at the following locations:

(a) On each truck that the grain dealer uses to haul grain in this state.

(b) At each business location from which the grain dealer operates in this state.”

Wis. Stat. § 126.11(11) (2024)

Refusal, Suspension, Revocation

“(10) Action granting or denying application. The department shall grant or deny an application under sub. (3) within 30 days after the department receives a complete application. If the department denies a license application, the department shall give the applicant a written notice stating the reason for the denial.”

Wis. Stat. § 126.11(10) (2024)

Contesting License Refusal and Hearing

N/A