Legislative Update (2-8-07)

February 8, 2007

One page broadcast fax

To:      North Dakota Elevator Managers and Allied Members

SB 2365: This proposed PSC study on grain grading procedures at grain elevators, was heard on Friday, February 2 in the Senate Ag Committee.  Durum Growers Association officers, Jim Diepolder, Larry Neubauer and Dennis Wunderlich led off approximately one hour of testimony supporting the bill.  These are not precise quotes, but representations such as the following were made:  Protein testers don’t have seals on them so operators tinker with them to the disadvantage of the farmer; My kid could grade grain better than people at the elevator;  Grain that is discounted should be traced to the end use so the buyer (of that loaf of bread or box of pasta) receives a discount.  Steve Strege and Dan DeRouchey offered opposition testimony and responded to questions.  The Committee reduced the $125,000 fiscal note to $4,900 so it could be held over without re-referral to the Appropriations Committee.  Grain Dealers’ written testimony is posted at www.ndgda.org .  The Senate Ag Committee is under deadline to act on this bill no later than Friday, February 9.  If you have input to any of the Senators on that Committee or for any other Senators, now is the time to make your contact.  Methods of contacting legislators are posted on the NDGDA website.

SB 2247, the bill to change (relax) ND roving grain buyer license requirements, will be heard in the Senate Ag Committee on Friday, February 9 at 10:15 a.m.  This bill is being advanced by the Northern Pulse Growers Association, formerly Dry Pea and Lentil Association.  Some dry pea and lentil handlers and processors in this state say their buyers outside this state and/or in foreign countries resist complying with the North Dakota licensing requirement.  ND law says anyone who purchases, solicits, merchandises, or takes possession of grain in this state (from a farmer or a licensed entity such as a grain elevator) must have a bond and license.  We all know this is not being followed by some buyers.  The PSC has been pursuing the matter and gotten some of them licensed.  The bill changes the definition of a grain buyer in 60-02.1-01(9) to exclude one who buys from a licensed entity “grain that has been cleaned and processed and has had value added to it.”  Pulse Growers feel this will exempt the buyers they want exempted.  Grain Dealers wonders about cracking the licensing door at all, and how far that definition can be stretched.  Does removing dockage fit the definition?  What about blending different qualities?  This hole might swallow the entire law.  NDGDA will speak against this bill.  At least for now these buyers are supposed to be licensed.  Members of the Senate Ag Committee are the immediate contact on this one.