203A.1 "Bargaining agent" defined.

As used in this chapter, "bargaining agent" means a person, group, firm, association or corporation who bargains with buyers for the sale of grain for agricultural producers.

As used in this chapter, "department" means the department of agriculture and land stewardship.

Bargaining agent shall not mean a person selling grain as a farm manager, or an executor, administrator, trustee, guardian, or conservator of an estate. A bargaining agent shall not take title to the grain but shall act only for or on behalf of the beneficiaries whose product the bargaining agent is offering for sale. Unless the bargaining agent agreement provides that proceeds from grain sales shall be paid directly to the agricultural producer by the buyer, the bargaining agent agreement shall provide that proceeds shall be paid to and held in trust by either the bargaining agent, or a third person identified in the bargaining agent agreement as a trustee, for the benefit of the agricultural producers. As used in this section the term "grain" means as provided in section 203.1.

203A.2 Permit required--denial or delay.

A person shall not engage in the business of a bargaining agent in this state without having obtained a permit issued by the department. Each application for a permit to engage in the business of a bargaining agent shall be made with the department, on a form prescribed by the department which form of application shall require only information pertinent and necessary for the issuance of the bargaining agent permit. The applicant shall supply the department with information to establish that proceeds from sales of grain which are executed by the bargaining agent on behalf of agricultural producers will be received and held in trust for the beneficiaries to assure payment of the proceeds of sale. The application shall also be accompanied by proof of bond pursuant to section 203A.4.

The department may deny an application for a permit to a person licensed as a grain dealer under chapter 203 if the grain dealer license is under suspension or has been revoked pursuant to section 203.10. If information or a complaint is filed with the department against the person as a grain dealer in accordance with section 203.10, the department may delay approving the application for a permit until after a hearing is provided under that section.

203A.3 Bargaining agent's permit.

Upon the filing of the application and compliance with the terms and conditions of sections 203A.1 and 203A.2, the department shall issue a permit to the applicant. The permit shall be good for one year from the date of issuance. The permit may be renewed annually by filing of a renewal application on a form prescribed by the department accompanied by an annual report of the bargaining agent showing any additions to or modification of the trust relationship. The applicant for a bargaining agent permit or a renewal thereof shall pay a permit fee in the amount of twenty-five dollars. The department may cancel a permit upon the request of a permittee.

203A.4 Bond required of bargaining agent.

Any applicant for a permit to operate as a bargaining agent in accordance with this chapter, as a condition to the granting of the permit, shall file with the department proof of a bond which is in the form and with such surety or sureties as required by the department covering the fiduciary responsibility of those trustees responsible to the beneficiaries. The bond shall be in a penal sum of fifty thousand dollars.

203A.5 Inspection of bargaining agent's books and records.

A bargaining agent's books, accounts, records and papers of grain transactions, and all books, accounts, records and papers relating to trust funds or to funds required by this chapter to be held in trust, shall be subject to inspection by the department during ordinary business hours. Where there is good cause to believe that a person is engaged without a permit in the business of a bargaining agent in this state, the department may inspect the books, papers and records of such person.

203A.6 Penalties--misdemeanor.

Any person who engages in business as a bargaining agent without obtaining a permit or any person in violation of any other provision of sections 203A.1 to 203A.5, or any bargaining agent who refuses to permit inspection of books, accounts or records of grain transactions as provided in this chapter, shall be guilty of a simple misdemeanor. Each day that any violation continues shall constitute a separate offense. Any person violating the provisions of this chapter may be restrained by an injunction. The permit of any person who has been found after a hearing, to have willfully violated the provisions of this chapter may be suspended for a reasonable time or revoked by the department.

203A.7 Suspension or revocation of permit.

The department may after hearing and upon information being filed with the department by the administrator of the warehouse bureau of the department or upon complaint filed by any person, suspend or revoke a bargaining agent permit issued under this chapter for the violation of or failure to comply with the provisions of this chapter or any rule adopted thereunder. An information or a verified complaint stating the grounds for suspension or revocation shall be filed with the department in triplicate. The department shall notify the permittee of the complaint and furnish the permittee with a copy of the information or the complaint and a copy of the order of the department fixing the time for a hearing, which time shall be at least five days from the date of notification. If the department determines that the public good requires immediate action, the department may, upon the filing of the information or the complaint and without hearing, temporarily suspend a permit pending the determination by it of the complaint. Judicial review of the actions of the department may be sought in accordance with the terms of the Iowa administrative procedure Act.

The department may revoke a bargaining agent permit upon information without hearing if the permittee fails to have sufficient bond on file with the department, or if the permittee fails to submit to inspection.

The department, after a hearing, may suspend or revoke a bargaining agent's permit if the permittee is licensed as a grain dealer under chapter 203 and the permittee's grain dealer license is under suspension or has been revoked pursuant to section 203.10.

Upon revocation of a permit, any claim of a creditor shall be filed against the former permittee within one hundred twenty days after the date of revocation. The department shall provide for giving notice to all agricultural producers under contract with the person holding the bargaining agent permit of the revocation of the permit.