Brief (1)
SB 564 would allow a grain warehouseman to file with the Secretary of Agriculture an irrevocable letter of credit in an amount equal to the amount of bond which otherwise would be required under the Grain Warehouse Act. The letter of credit would be issued by an institution which is insured by the Federal Deposit Insurance Corporation or issued by farm credit institutions chartered by the Farm Credit Administration; be issued for a period at least six months longer than the expiration date of the underlying license; provide for payment to the State of Kansas for the security liability of the warehouseman; and be on a form approved by the Secretary of Agriculture.
The bill would become effective upon publication in the Kansas Register.
Background
This bill was introduced at the request of a spokesperson for the Kansas Grain and Feed Association. At the hearing on the bill those testifying in support of the bill included representatives of the Kansas Grain and Feed Association and the Kansas Cooperative Council, the Secretary of Agriculture, and a representative of Mid Kansas Coop of Moundridge. No one appeared in opposition to the bill.
The Senate Committee on Agriculture amended the bill to make it become effective upon publication in the Kansas Register.
The House Committee on Agriculture made technical amendments to the bill.
The Department of Agriculture indicated that the passage of the bill would have no fiscal impact. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html