Section 26-3-7-3 - Powers and duties of director(a) The director may do the following:(1) Require any reports that are necessary to administer this chapter.(2) Administer oaths, issue subpoenas, compel the attendance and testimony of witnesses, and compel the production of records in connection with any investigation or hearing under this chapter.(3) Prescribe all forms within the provisions of this chapter.(4) Establish grain standards in accordance with the grain standards act and federal regulations promulgated under that act that must be used by warehouses.(5) Investigate the activities required by this chapter including the storage, shipping, marketing, and handling of grain and complaints with respect to the storage, shipping, marketing, and handling of grain.(6) Inspect a facility, the grain stored in a facility, and all property and records pertaining to a facility. All inspections of an applicant or licensee under this chapter must take into consideration the proprietary nature of an applicant's or licensee's commercial information. The director may adopt rules under IC 4-22-2 regarding inspections permitted under this chapter, and the rules must take into consideration the proprietary nature of an applicant's or a licensee's commercial information. This chapter does not authorize the inspection of an applicant's or licensee's trade secret or intellectual property information.(7) Determine whether a facility for which a license has been applied for or has been issued is suitable for the proper storage, shipping, and handling of the grain that is stored, shipped, or handled, or is expected to be stored, shipped, or handled.(8) Require a licensee to terminate storage, shipping, marketing, and handling agreements upon revocation of the person's license.(9) Attend and preside over any investigation or hearing allowed or required under this chapter.(10) Impose sanctions for violations of this article.(11) Require a grain buyer and all persons purchasing grain to show evidence of training or licensing on the risks associated with grain marketing practices only if a grain buyer engages in a risk factor higher than a standard defined by the director. This training or licensing may include requiring the grain buyer or person purchasing grain to do any of the following: (A) Provide the agency with proof of registry with the commodity futures trading commission (CFTC) as a commodity trading adviser, a futures commission merchant, an introducing broker, or an associated person.(B) Demonstrate passage of the series 3 examination administered by the National Futures Association.(C) Annually attend six (6) hours of continuing education, approved by the director, focusing on the risks to a grain buyer and seller that are associated with grain marketing practices and the communication of risks to the producer. Additionally, as part of continuing education, require a grain buyer, and all persons purchasing grain for a grain buyer, to pass a test, approved and administered by the director, that reasonably measures the grain buyer's understanding of the risks to grain buyers and sellers associated with producer marketing strategies.(12) Require all contracts executed after August 31, 2017, for the purchase of grain from producers, except a flat price contract or a contract for the production of seed, to include the following notice immediately above the place on the contract where the seller of the grain must sign: "NOTICE - SELLER IS CAUTIONED THAT CONTRACTING FOR THE SALE AND DELIVERY OF GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE FUTURE PAYMENTS BY YOU TO MAINTAIN THIS CONTRACT, A LOWER SALES PRICE, AND OTHER RISKS NOT SPECIFIED.
INDIANA STATE LAW REQUIRES THAT AFTER JULY 1, 2022, ALL DEFERRED PRICED GRAIN MUST BE PRICED WITHIN THE CROP YEAR AS DEFINED BY IC 26-3-7-2(7). THIS CONTRACT MUST BE PRICED BY _(Insert Date)_.
COVERAGE UNDER THE INDIANA GRAIN INDEMNITY PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED TO A FIRST PURCHASER LICENSEE WITHIN THE 15 MONTHS BEFORE THE DATE OF FAILURE AND IS LIMITED TO 100% OF A LOSS FOR STORED GRAIN AND 80% OF A LOSS FOR OTHER COVERED CONTRACTS.
BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.".
(13) Require all contracts executed after January 1, 2000, for the production of seed to include the following notice, in conspicuous letters, immediately above the place on the contract or an addendum where the seller of the seed must sign: "NOTICE - IF THE TERMS OF THIS CONTRACT STATE THAT THE CONTRACTOR RETAINS OWNERSHIP OF THE SEED AND ITS PRODUCTS, YOU MAY NOT BE ELIGIBLE FOR PARTICIPATION IN THE INDIANA GRAIN INDEMNITY PROGRAM. TO BE ELIGIBLE TO PARTICIPATE IN THE INDIANA GRAIN INDEMNITY PROGRAM, FARMERS MUST OWN AND SELL GRAIN OR SEED. BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.".
(14) At any time, order an unannounced audit for compliance with this article.(15) Adopt rules under IC 4-22-2 to carry out the purposes and intent of this chapter.(16) Require all grain buyers offering deferred pricing, delayed payments, or contracts linked to the commodity futures or commodity options market in connection with a grain purchase to document the agreement in writing not more than twenty-one (21) days after delivery.(17) Receive and consider financial audits of a licensee conducted by an independent audit or accounting firm.(18) Share information with board members regarding the financial status of a licensee, while the board is in executive session and without disclosing the name or any other identifying information of the licensee, including the following: (A) Whether there is a risk that a licensee may fail.(B) The financial impact to the fund if a licensee identified in clause (A) were to fail.(C) The estimated number of potential claimants that could result from the failure of a licensee identified in clause (A).(D) Any other information the director determines is necessary to solicit the advice of the board regarding the financial status of a licensee. However, the director may not share information under this subdivision with a board member who has not executed a confidentiality agreement.
(19) Adopt rules under IC 4-22-2 regarding fines for violations of this chapter.(b) The director shall do the following:(1) Establish standards to ensure that a grain buyer has a suitable financial position to conduct a business as a grain buyer.(2) Require a person who conducts business as a grain buyer to first be licensed by the agency.(3) Require any person engaged in the business of advising producers on grain marketing for hire to: (A) register with the agency; and(B) provide the agency with proof of registry with the commodity futures trading commission (CFTC) as a commodity trading advisor, a futures commission merchant, an introducing broker, or an associated person.(c) The director may designate an employee to act for the director in the administration of this chapter. An employee designee may not: (1) act in matters that require a public hearing or the temporary suspension of a license;(3) act as the ultimate authority in the administration of this chapter.(d) The director may designate an administrative law judge to act for the director in the administration of this chapter.(e) The director may determine whether geographically separate facilities constitute a single warehouse or grain buyer and in making the determination may consider the following:(1) The number of facilities involved.(2) Whether full weighing equipment is present at the geographically separate facilities.(3) The method of bookkeeping employed by the separate facilities.(4) The hours of operation of the separate facilities.(5) The personnel employed at the separate facilities.(6) Other factors the director deems relevant.(f) The director and the director's designees shall become members of the national grain regulatory organization and shall: (1) work in partnership with other state grain regulatory officials;(2) participate in national grain regulatory meetings; and(3) provide expertise and education at national meetings(g) The director shall engage an independent third party firm to conduct a performance review of the agency's auditing practices and procedures at least once every five (5) years. The agency shall make reasonable efforts to implement any corrective measures identified in the performance review to enhance and improve the agency's auditing practices and procedures. The agency shall make the findings of the performance review available to the board.(h) The director may subpoena or require that certain records located outside Indiana, if any, be brought to a specified location in Indiana for review by the agency.Amended by P.L. 208-2021,SEC. 2, eff. 4/29/2021.Amended by P.L. 145-2017,SEC. 2, eff. 4/24/2017.Amended by P.L. 60-2015, SEC. 5, eff. 7/1/2015.(Formerly: Acts1973 , P.L. 268, SEC.1; Acts1974 , P.L. 120, SEC.2.) As amended by P.L. 191-1991, SEC.2; P.L. 1-1992, SEC.143; P.L. 249-1995, SEC.1; P.L. 139-1996, SEC.7; P.L. 125-1997, SEC.20; P.L. 173-1999, SEC.2; P.L. 75-2010, SEC.11.