CHAPTER 4. INDIANA GRAIN INDEMNITY FUND
IC 26-4-4
Chapter 4. Indiana Grain Indemnity Fund
IC 26-4-4-1
Establishment of fund; fiscal year
Sec. 1. (a) The Indiana grain indemnity fund is established for thepurpose of providing money to pay producers for losses incurred dueto the failure of a grain buyer or warehouse operator licensed underIC 26-3-7. The fund shall be administered by the board of thecorporation.
(b) The fund shall operate on a fiscal year of July 1 to June 30.
As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999,SEC.18; P.L.75-2010, SEC.24.
IC 26-4-4-2
Contents of fund; fees and expenses
Sec. 2. (a) The fund consists of money paid into the fund from theproducers of grain under section 4 of this chapter.
(b) The expenses of administering the fund must be paid frommoney in the fund. After the fund reaches an amount in excess of tenmillion dollars ($10,000,000), the board may annually take not morethan two hundred fifty thousand dollars ($250,000) and allocate it toa separate administrative expenses account to pay administrativeexpenses. Administrative expenses under this section may include:
(1) processing refunds;
(2) enforcement of the fund;
(3) record keeping in relation to the fund; and
(4) the ordinary management and investment fees connectedwith the operation of the fund.
(c) Board approved legal fees and legal expenses in actionsbrought against the corporation, board, or fund must be paid frommoney in the fund. These fees and expenses are not administrativecosts and may not be paid from the administrative expense account.
As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.2.
IC 26-4-4-3
Premiums held in trust; investment of fund; interest; reversion
Sec. 3. (a) All producer premiums submitted to the board by agrain buyer under section 6(b) of this chapter shall be held by thecorporation in trust in the fund for carrying out the purposes of thisarticle. The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested. Interest earned fromthese investments shall be credited to the fund.
(b) Money in the fund at the end of a state fiscal year does notrevert to the state general fund.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-4
Producer premiums Sec. 4. (a) Except as provided in section 8 of this chapter,beginning on July 1, 1996, the producers of grain shall be charged aproducer premium equal to two-tenths percent (0.2%) of the price onall marketed grain that is sold in Indiana.
(b) The producer premiums required under this section are inaddition to any other fees or assessments required by law.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-5
Notice of producer premium deductions
Sec. 5. The agency shall notify each grain buyer licensed underIC 26-3-7 that producer premiums described in section 4 of thischapter shall be deducted from the purchase price of the grain on andafter the date specified in the notice. The notice must be sent by firstclass mail.
As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010,SEC.25.
IC 26-4-4-6
Submission of producer premiums to finance fund
Sec. 6. (a) When purchasing grain, a grain buyer, a grain buyer'sagent, or a grain buyer's representative shall:
(1) deduct the producer premium described in section 4 of thischapter from the producer's payment; and
(2) document the producer premium paid by the producer.
(b) A grain buyer shall submit producer premiums collected undersubsection (a) to the board for the purpose of financing orcontributing to the financing of the fund by:
(1) October 31 for producer premiums collected during themonths of July, August, and September;
(2) January 31 for producer premiums collected during themonths of October, November, and December;
(3) April 30 for producer premiums collected during the monthsof January, February, and March; and
(4) July 31 for producer premiums collected during the monthsof April, May, and June.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-7
Inspection of books and records; verification; confidentiality
Sec. 7. (a) The:
(1) books and records of each grain buyer must clearly indicatethe producer premiums collected by the grain buyer; and
(2) portion of the books and records reflecting the premiumscollected must be open for inspection by the corporation, board,board's authorized agents, director, or the director's designeeduring regular business hours.
(b) The corporation, board, board's authorized agent, director, orthe director's designee may take steps reasonably necessary to verifythe accuracy of the portion of a grain buyer's books and records that
reflect the premiums collected. The information obtained under thissection is confidential for purposes of IC 5-14-3-4(a)(1). Unlessotherwise required by judicial order, the information obtained underthis section may be disclosed only to parties empowered to see orreview the information. The corporation, board, or director mayrespond to inquiries or disclose information obtained under thissection only in accordance with guidelines set forth in IC 26-3-7-6.5.
(c) Notwithstanding subsections (a) and (b), the verificationpermitted under subsection (b) must be completed by the agencyunless two-thirds (2/3) of the board vote to have the verificationcompleted by an independent auditor.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-8
Amount of fund; basis for suspension and reinstatement ofproducer premium collection
Sec. 8. (a) The producer premiums required under section 4 of thischapter must be collected until the fund contains more than fifteenmillion dollars ($15,000,000) as of June 30 of any given year.
(b) Except as provided in subsection (c), after the fund reachesfifteen million dollars ($15,000,000), the board may not require thecollection of additional producer premiums until the amount in thefund drops below ten million dollars ($10,000,000), as determinedunder section 9 of this chapter. In a year when the board determinesthat the fund is at or below ten million dollars ($10,000,000), theboard shall reinstate the collection described in this chapter.
(c) The board shall reinstate the collection described in thischapter if as of May 1:
(1) the fund contains at least ten million dollars ($10,000,000);
(2) the board is aware of a failure of a grain buyer; and
(3) the amount of compensation from the fund to coverproducers' claims, as determined by the board, is equal to orgreater than the amount of money in the fund.
As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.3.
IC 26-4-4-9
Certification of fund balance; discretion of board to suspendcollection
Sec. 9. (a) At the July meeting required under IC 26-4-3-5, theboard shall certify the amount of money in the fund on June 30.
(b) Except as provided in section 8(c) of this chapter, the boardmay not require the collection of a producer premium during a fiscalyear when the board certifies under subsection (a) that the fund hasmoney in excess of ten million dollars ($10,000,000). If the fund isat or below ten million dollars ($10,000,000), the board shallreinstate the collection.
As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.4;P.L.75-2010, SEC.26.
IC 26-4-4-10Repealed
(Repealed by P.L.268-2001, SEC.2.)