Legislative Bulletin (1-26-07)

January 26, 2007

One page broadcast fax

TO:  North Dakota Elevator Managers and all Allied Members

SB 2365 is new.  It says PSC “shall conduct a study of grain inspection procedures in this state.  The study must address the methodology, accuracy, uniformity, and cost-effectiveness of testing and sampling procedures and must determine training and education standards that would be desirable in improving current procedures.”  Prime sponsor is Senator Wanzek of Jamestown.  Others are Senator Taylor of Towner, plus Reps Johnson of Devils Lake and Mueller of Valley City.  NDGDA asked and PSC reported the following number of complaints on grain grading:  2 in 2002, 3 in 2003, 11 in 2004, 9 in 2005, 3 in 2006.  2004 was the cool year with a late harvest of frost damaged, light corn.  Marketing carried into 2005.  Without that abnormality the average is 2-3 per year.  Is that reason for the legislature to tell the PSC to conduct a study?  Hearing scheduled for Friday February 2 at 9:45 a.m. in Senate Ag.  NDGDA will testify OPPOSED to this bill.  Weigh-in with Senate Ag Committee members if you wish.  List is on page 36 of your Lawmakers book.

SB 2368 is new.  It says  “A provision of any lease, license, or other agreement for the use or occupancy of railroad right of way or other adjoining property is void to the extent the provision provides that any provision of section 49-16-01.1 does not apply, that the laws of another state are to apply, or that another law, rule, or provision is to apply. With respect to a lease, license, or other agreement affected by this section, section 49-16-01.1 is deemed to apply.”  This section of the Code deals with liability.  NDGDA pushed legislation in 2003 to limit lessee liability for railroad negligence.  It is reported that some new leases have language in them stating the laws of a different state will apply.  Sponsor is Senator Potter of Bismarck.  Grain Dealers is supporting this bill.  Hearing not yet scheduled.

HB 1181 lowers cap on indemnity fund.  House Ag Committee action expected next week.

 HB 1185 amended so ND & neighbor states Dry Pea & Lentil Councils split checkoffs.  ND elevators collect ND checkoff on all dry peas & lentils purchased, regardless of state of origin, & remit to ND Council.  This is what Grain Dealers wanted with this bill.

HB 1338 was heard in House IBL on Jan 24.  Initial bill said when receivables secured by suppliers liens are sold the priority position goes along.  Bankers proposed amendments that receivables can be sold but the lien priority does NOT go along.  This is the understanding of many suppliers and lenders at the present time.  Action pending.  

SB 2285 as written required certified mail notice of liens.  Amendments will eliminate ag suppliers from this requirement, which is what Grain Dealers asked of the sponsor.