Current through Register Vol. 47, No. 23, December 10, 2024
A.
Adopted November 1, 2007 - Effective
December 30, 2007
Statutory Authority:
These Rules pertaining to the administration and enforcement
of the Farm Products and Commodity Handler Acts, §
12-16-101 - 223, C.R.S., are
proposed for adoption by the Commissioner pursuant to his authority in §
12-16-117(1)
C.R.S. and §
12-16-210(1),
C.R.S.
Purpose:
The purposes of these rules are to implement the statutory
changes to the Farm Products and Commodity Handler Acts which required the
Commissioner to:
(1) establish rules to
determine the capacity of animal feeding operations; and
(2) establish rules to specify the licensure
dates of a dealer, small volume dealer, agent, and commodity handler.
Factual Basis:
1.
Sections 12-16-103(4)(a)(V)
and
12-16-202 (4.5)(a)(V), C.R.S.
(2007), require the Commissioner to establish rules to determine the capacity
of animal feeding operations. Factual information provided by the industry and
Iowa State University support the use of one linear foot of feed bunk per
animal to calculate such capacity.
2. Sections
12-16-104(4) and
12-16-203(2),
C.R.S. (2007) require the Commissioner to specify by rule the expiration dates
of dealer, small volume dealer, agent, and commodity handler
licenses.
B.
Adopted April 9, 2013 - Effective January 1, 2014
Statutory Authority:
The Commissioner's authority for the adoption of this
permanent rule amendment is set forth in §
§
12-16-104(4),
§ 35-16- 206(2) and §
35-1-107(5)(a),
C.R.S.
Purpose:
The purpose of this permanent rule amendment is to amend
Section 2 to change the expiration date for a dealer, small volume dealer,
agent and commodity handler license from the last day of February to December
31.
FACTUAL AND POLICY BASIS:
The factual and policy issues pertaining to the adoption of
this permanent rule amendment are as follows:
1. This change is necessary to allow the
Department to consolidate licensing functions to one time per year for all
licenses issued by the ICS Division.
2. The Department of Agriculture is moving
its licensing functions from a paper based system to an online system. To
accommodate licensee's who hold multiple licenses with the Department of
Agriculture, we are establishing a common licensing date so a licensee can
obtain all their licenses in one transaction.
C.
Adopted June 11, 2014 - Effective
July 30, 2014
Statutory Authority:
The Commissioner's authority for the adoption of these rule
amendments are set forth in Sections
12-16-104(4),
12-16-110.5(1)(e),
12-16-117(1),
12-16-206(2),
12-16-208(1)(f),
12-16-210(1),
12-16-211(4) and
35-1-107(5)(a),
C.R.S.
Purpose:
The purposes of these rule amendments are to:
1. Create a new Part 4 to require a statement
in a credit sales contract that warns a producer that entering into such a
contract entails a risk that the bond may not completely protect the producer
from loss in the event of a failure of the dealer, small volume dealer, or
commodity handler.
2. Create a new
Part 5 to consolidate the rules that applied to letters of credit and create
uniformity between bonds and letters of credit so the process and timelines for
both are the same, and to accept letters of credit issued by a farm credit
administration bank for cooperatives.
3. Create a new Part 6.1 to regulate the
issuance, of all negotiable commodity warehouse receipts. Provide for the
correct issuance, transfer and cancellation of all negotiable commodity
warehouse receipts.
4. Create a new
Part 6.2 to establish regulations specific to the issuance, transfer and
cancellation of paper negotiable commodity warehouse receipts.
5. Create a new Part 6.3 to establish
regulations specific to the issuance, transfer and cancellation of electronic
negotiable commodity warehouse receipts.
FACTUAL AND POLICY BASIS:
The factual and policy issues pertaining to the adoption of
this permanent rule amendment are as follows:
1. House Bill 13-1034 amended Sections
12-16-110.5 and
12-16-208, C.R.S. to require the
commissioner to specify a statement by rule that warns a producer that entering
into a credit sales contract entails a risk that the bond may not completely
protect the producer from loss in the event of a failure of the dealer, small
volume dealer, or commodity handler. This bill also extended the timeline for a
warehouse to issue a credit sales contract from sixty (60) days to thirty (30)
days.
2. Rule 8 CCR 1202-08 was
struck and reinstated into rule 8 CCR 1202-11 with amendments. House Bill
13-1034 amended Sections
12-16-106 and
12-16-218 C.R.S. to change the
liability of bonds and letters of credit from twenty four (24) months to one
hundred eighty (180) days and created uniformity between bonds and letters of
credit so the process and timeliness for both are the same. The current
Department letter of credit form and Section
11-35-101.5 C.R.S. both allow for
the acceptance of letters of credit issued by a farm credit administration bank
for cooperatives.
3. House Bill
13-1034 amended Section
12-16-211, C.R.S. the amendment
allows for the use of negotiable electronic negotiable commodity warehouse
receipts in addition to paper negotiable commodity warehouse receipts. Prior to
HB 13-1034, only paper negotiable commodity warehouse receipts were allowed to
be used. Going forward an owner of commodities can use both paper and
electronic negotiable warehouse receipts. These rules are needed to regulate
the issuance, use, and records requirements of both paper and electronic
negotiable warehouse receipts.
4.
House Bill 13-1034 amended Section
12-16-211(2),
C.R.S. the amendment allows for the issuance of paper negotiable commodity
warehouse receipts and makes the Department the sole source of paper negotiable
warehouse receipts. The amendment requires the Department to furnish these
receipts at cost to licensed warehouse operators. Since paper negotiable
warehouse receipts are a physical document there is a difference in how paper
and electronic warehouse receipts are handled by the owner of commodities and
the warehouse operator. These rules are needed to regulate the issuance, use,
and records requirements of paper negotiable warehouse receipts.
5. House Bill 13-1034 amended Section
12-16-211(3),
C.R.S. the amendment allows for the issuance of electronic negotiable commodity
warehouse receipts generated by a vendor approved by the United States
Department of Agriculture instead of paper negotiable warehouse receipts. These
rules are needed to ensure data is secure, not changed inappropriately and only
released to authorized parties. These rules are also needed to ensure the
centralized filing system is operated by an approved neutral third party vendor
in a confidential and secure fashion independent of any outside influence or
bias in action or appearance.
D.
Adopted June 9, 2021 - Effective
July 30, 2021
STATUTORY AUTHORITY
The Commissioner's statutory authority for the adoption of
this permanent rule amendment is set forth in section
35-36-103(1),
C.R.S.
PURPOSE
The purpose of this rulemaking is to comply with program
changes as a result of a Sunset Review and subsequent changes in House Bill
20-1213. Section
35-36-103(1),
C.R.S., requires the Commissioner to conduct specific rulemaking. This
rulemaking revision includes: new requirements for license applications, new
requirements for public warehouse operations and storage, a new bond schedule
including alternative rates for qualifying licensees, new recordkeeping
requirements, and new requirements for credit sales contracts. Additionally,
this rulemaking provides a definition section for improved clarity and
uniformity of terms.
FACTUAL AND POLICY BASIS
This rulemaking is required by section
35-36-103(1),
C.R.S., and is based on stakeholder input. The purported changes to the license
application requirements, public warehouse operations and storage requirements,
bond schedules, recordkeeping requirements and credit-sale contracts
requirements will provide added protection for consumers and producers in the
industry. The added definition section provides clarity and uniformity
throughout the program.
E.
Adopted November 10, 2021 - Effective December 30, 2021
STATUTORY AUTHORITY
The Commissioner's statutory authority for the adoption of
this permanent rule amendment is set forth in section
35-36-103(1),
C.R.S.
PURPOSE
The purpose of this rule making is to clarify the definitions
of the terms Commodity Handler and Dealer to properly align with
35-36-102, C.R.S.
FACTUAL AND POLICY BASIS
This rulemaking clarifies the definitions of the terms
Commodity Handler and Dealer so they are the same as the definitions in section
35-36-102(8) and
(12), C.R.S. respectively. The updated
definition section provides clarity and uniformity throughout statute and
rule.
