New regulations for grain dealers passed

A bill passed May 21 regulates the financial obligations of Nebraska grain dealers.

Introduced by Wahoo Sen. Jerry Johnson, LB183 decreases grain dealer obligations covered by the dealer’s security, which is money set aside to pay growers who are not paid immediately upon delivery of their product.

The bill limits the dealer security to cover payment only to growers who sell directly to dealers. The bill prevents owners who are not growers from claiming past due payments or grain purchasers from filing claims stemming from dealers’ failure to deliver.

The bill also shortens from 30 to 15 days the time a grower may demand payment from the dealer, attempt payment negotiations with the dealer or notify the Public Service Commission of an apparent loss.

Grain transportation vehicles no longer are required to be registered and issued grain dealer plates. Further, accountants or accounting firms preparing statements for grain dealership license applicants now may be located in any state.

The bill passed on a 48-0 vote.