SCS/HCS/HB 1099 - This act makes numerous changes to the Commercial Feed Law, including:

(1) Any person acting as an independent consultant must obtain a license from the Department of Agriculture.

(2) A product is considered to be misbranded if it is not appropriate for its intended or purported use.

(3) The Department's authority is expanded to allow action to be taken if any product is found to be adulterated. A product is considered to be adulterated if it contains any filthy, putrid, or decomposed substance, or if it is otherwise found to be unfit for feed.

(4) Stronger action may be taken against companies by suspending or revoking licenses when there is just cause.

(5) Customer-formula feed sampling is expanded and chemical analysis results are to be provided to the customer.

(6) The annual report containing information about sales of commercial feeds, data on such feeds production, and use and results of the analyses of official samples of commercial feeds sold within the state will be provided to all distributors of feed, feed dealers, and others free of charge.

(7) After inquiry and opportunity for a hearing, the Director of the Department of Agriculture may assess civil penalties not to exceed $1,000 for each violation for serious and repeat offenders of the feed law and may order restitution be made to any person. Any person aggrieved by an act, order or ruling made pursuant to the provisions of this act may appeal pursuant to the provisions in Chapter 536, RSMo. Any person subject to a final administrative order may file a de novo appeal to the circuit court. The circuit court may assess a civil penalty of up to $5,000 per violation.

(8) Pet food and specialty pet food inspection fees are increased and capped at $1,000 per manufacturer.

Also included in this act are numerous changes to the Grain Dealer and Grain Warehouse laws.

(1) Revised Financial Statement Requirements: Current law, which went into effect February 1, 1996, requires all warehouses and dealers posting letters of credit or certificates of deposit as security to submit financial statements which have been audited by a certified public accountant. Licensees submitting bonds as security must submit financial statements which have been reviewed by a certified public accountant.

This act requires all licensees to submit at least review level financial statements. The review shall be performed by a certified public accountant.

(2) Increased Financial Requirements for Credit Sales Contracts: This act increases financial requirements for licensees engaging in credit sales contracts to the greater of $50,000 or 2 percent of annual grain purchases. Currently, the greater of 15 cents per bushel or 1 percent of annual grain purchases is required.

(3) Record keeping requirements for all classes of dealers are unified and all classes of dealers will be audited by the Department of Agriculture. Currently, only Class I dealers are required to keep certain records and be audited by the Department.

(4) Fees have been raised to $50. Currently, filing fees are $15 and license fees are $25.

(5) Clarifications are made to definitions in both laws to ensure consistency. Grain dealer licenses are required for all businesses purchasing grain from producers on a regular basis. Licenses will no longer be required if grain is only purchased from licensed dealers.

(6) A new section is added to the warehouse law to create a statutory lien on grain and grain related assets of a failed warehouseman for the benefit of grain storage depositors.

The grain dealer and grain warehouse sections of this act have an emergency clause. The commercial feed sections of this act become effective January 1, 1997.

This act is similar to SB 867 and SB 761.
TOM CRAWFORD