Lawmakers gave final-round approval March 24 to a bill that clarifies a provision regarding the distribution of assets if a grain warehouse fails.
LB730, introduced by Sen. Jerry Johnson of Wahoo, clarifies a rule under which a person who has recently sold grain to a warehouse may regain their status as an owner eligible for distribution of assets if the Public Service Commission takes control of the warehouse.
Warehouses are required to post bonds for the benefit of those who own or store grain there in the event the warehouse fails. If that happens, only qualified owners are eligible for the distribution of assets.
An exception in current law provides that the grain seller may revert to the status of owner if he or she holds a check in payment issued within five days of the date the commission takes control of the warehouse. LB730 clarifies that the exception applies to the date of the sale and transfer of title regardless of whether the warehouse issued the seller a check.
The bill passed on a 48-0 vote.