As Passed by the House

130th General Assembly
Regular Session
2013-2014
Am. S. B. No. 66


Senator Hite 

Cosponsors: Senators Burke, Balderson, LaRose, Peterson, Gentile, Cafaro, Smith, Manning, Bacon, Beagle, Brown, Coley, Eklund, Faber, Gardner, Hughes, Kearney, Lehner, Obhof, Oelslager, Sawyer, Schaffer, Schiavoni, Seitz, Skindell, Tavares, Turner, Uecker, Widener 

Representatives Hall, Cera, Burkley, Clyde, Retherford, Scherer, Adams, R., Amstutz, Anielski, Antonio, Ashford, Baker, Barborak, Barnes, Beck, Boose, Brown, Buchy, Celebrezze, Curtin, Damschroder, Derickson, Dovilla, Duffey, Fedor, Gerberry, Gonzales, Grossman, Hackett, Hagan, C., Hayes, Heard, Henne, Hill, Hottinger, Johnson, Landis, Letson, Mallory, McClain, Milkovich, Patterson, Pelanda, Pillich, Rogers, Rosenberger, Ruhl, Sears, Smith, Sprague, Stebelton, Strahorn, Williams, Winburn Speaker Batchelder 

A BILL
To amend sections 926.01, 926.021, 926.06, 926.10, 1
926.17, and 926.18 of the Revised Code to revise 2
the Agricultural Commodity Handlers Law.3


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 926.01, 926.021, 926.06, 926.10, 4
926.17, and 926.18 of the Revised Code be amended to read as 5
follows:6

       Sec. 926.01.  As used in this chapter:7

       (A) "Agricultural commodity" means barley, corn, oats, rye, 8
grain sorghum, soybeans, wheat, sunflower, speltz, or any other 9
agricultural crop that the director of agriculture may designate 10
by rule. "Agricultural commodity" does not mean any grain that is 11
purchased for sale as seed.12

       (B) "Agricultural commodity handling" or "handling" means any 13
of the following:14

       (1) Engaging in or participating in the business of 15
purchasing from producers agricultural commodities for any use in 16
excess of thirty thousand bushels annually;17

       (2) Operating a warehouse as a bailee for the receiving, 18
storing, shipping, or conditioning of an agricultural commodity;19

       (3) Receiving into a warehouse an agricultural commodity 20
purchased under a delayed price agreement;21

       (4) Providing marketing functions, including storage, delayed 22
price marketing, deferred payment, feed agreements, or any other 23
marketing transaction whereby control is exerted over the monetary 24
proceeds of a producer's agricultural commodities by a person 25
other than the producer.26

       (C) "Agricultural commodity handler" or "handler" means any 27
person who is engaged in the business of agricultural commodity 28
handling.29

       (D) "Depositor" means:30

       (1) Any person who delivers an agricultural commodity to a 31
licensed handler for storage, conditioning, shipment, or sale;32

       (2) Any owner or legal holder of a ticket or receipt issued 33
for an agricultural commodity who is a creditor of the licensed 34
handler for the value of the agricultural commodity;35

       (3) Any licensed handler storing an agricultural commodity 36
that the licensed handler owns solely, jointly, or in common with 37
others in a warehouse owned or controlled by the licensed handler 38
or any other licensed handler.39

       (E) "Receipt" means a warehouse receipt issued by a licensed 40
handler.41

       (F) "Nonnegotiable receipt" means a receipt on which it is 42
stated that the agricultural commodity received will be delivered 43
to the depositor or to the order of any other person named in the 44
receipt.45

       (G) "Negotiable receipt" means a receipt on which it is 46
stated that the agricultural commodity received will be delivered 47
to the bearer or to the order of any person named in the receipt.48

       (H) "Ticket" means a scale weight ticket, a load slip, or any 49
evidence, other than a receipt, given to a depositor by a licensed 50
handler upon delivery of an agricultural commodity to the handler.51

       (I) "Warehouse" means any building, bin, protected enclosure, 52
or similar premises under the control of a licensed or unlicensed 53
handler used for receiving, storing, shipping, or handling an 54
agricultural commodity.55

       (J) "Storage" means the deposit of an agricultural commodity 56
into a warehouse either for the account of the licensed handler 57
operating the warehouse or for the account of a depositor.58

       (K) "Producer" means any person who grows an agricultural 59
commodity on land that the person owns or leases.60

       (L) "Agent" means any person, other than a producer, who 61
delivers an agricultural commodity to a licensed handler, either 62
for sale or for storage, for the account of the producer.63

       (M) "Agricultural commodity tester" or "tester" means a 64
person who operates a moisture meter and other quality testing 65
devices to determine the quality of an agricultural commodity.66

       (N) "Federally licensed grain inspector" means a person who 67
is licensed by the United States department of agriculture under 68
the "United States Grain Standards Act," 39 Stat. 482 (1916), 7 69
U.S.C. 71, as amended, to test and grade grain, as "grain" is 70
defined in that act.71

       (O) "Bailee" means a person to whom an agricultural commodity 72
is delivered in trust for storage in a warehouse with title 73
remaining in the name of the depositor.74

       (P) "Bailor" means a person who delivers an agricultural 75
commodity to a bailee in trust for storage in a warehouse with 76
title remaining in the name of the depositor.77

       (Q) "Bailment agreement" means a bailor-bailee agreement 78
between a depositor and a licensed handler as stated in the terms 79
of a receipt that is issued for an agricultural commodity in 80
storage and subject to the requirements of this chapter governing 81
the use of a receipt.82

       (R) "Delayed price agreement" means a written executory 83
contract executed by and between a licensed handler and a 84
depositor that covers the sale and transfer of title of an 85
agricultural commodity and states in its written terms the service 86
charges and the method for pricing the commodity at a later date.87

       (S) "Delayed price marketing" means the sale and transfer of 88
title of an agricultural commodity with the price to be 89
established at a later date according to the terms of a delayed 90
price agreement.91

       (T) "Deferred payment" means the deferral of payment to a 92
depositor by a licensed handler for an agricultural commodity to 93
which the licensed handler has taken title, for the purpose of 94
deferring income of the depositor from one tax year to another.95

       (U) "Feed agreement" means a written contract executed by and 96
between a licensed handler and a producer or depositor who 97
delivers an agricultural commodity to the licensed handler for 98
storage whereby each of the following applies:99

       (1) The producer or depositor transfers title to the 100
agricultural commodity to the licensed handler in exchange for a 101
nominal sum;102

       (2) The producer, upon delivery of the agricultural commodity 103
to the licensed handler, becomes a creditor of the licensed 104
handler due to the lien that arises under section 926.021 of the 105
Revised Code;106

       (3) All or part of the agricultural commodity is returned to 107
the producer at a later date and used for feed purposes.108

       (V) Notwithstanding section 1.02 of the Revised Code, "and" 109
shall not be read "or" and "or" shall not be read "and."110

       Sec. 926.021.  (A) As used in this section:111

       (1) "Claimant" means a person to whom an agricultural 112
commodity handler owes a financial obligation for agricultural 113
commodities or the actual monetary proceeds from agricultural 114
commodities that have been delivered to the handler.115

       (2) "Failure" means any of the following involving an 116
agricultural commodity handler:117

       (a) An inability to satisfy claimants financially;118

       (b) A public declaration of insolvency;119

       (c) A revocation, suspension, or conditional suspension of 120
license with outstanding indebtedness to claimants;121

       (d) Nonpayment in the ordinary course of business where a 122
good faith dispute does not exist;123

       (e) No application for license renewal;124

       (f) Denial of license renewal;125

       (g) Voluntarily surrendering a license.126

       (3) "Agricultural commodity assets" involving an agricultural 127
commodity handler means any of the following:128

       (a) All agricultural commodities owned or stored, including 129
agricultural commodities in transit shipped by the handler but not 130
yet paid for;131

       (b) Redeposited agricultural commodities;132

       (c) Proceeds from the sale of agricultural commodities due or 133
to become due to the depositor;134

       (d) The equity less any secured financing directly associated 135
therewith in assets in hedging or speculative margin accounts held 136
by commodity or security exchanges or dealers representing the 137
exchanges, and any moneys due or to become due less any secured 138
financing directly associated therewith from any transactions on 139
the exchanges;140

       (e) Any other unencumbered funds, property, or equity in 141
funds or property, wherever located, that can be directly traced 142
to the sale of agricultural commodities by the handler, provided 143
both that the funds, property, or equity in funds or property 144
shall not be considered to be encumbered unless the encumbrance 145
results from good and valuable considerations advanced by any 146
secured party on a good faith basis and that the encumbrance is 147
not the result of the taking of funds, property, or equity in 148
funds or property as additional collateral for an antecedent debt;149

       (f) Any other unencumbered funds, property, or equity in 150
assets.151

       (B) A lien shall exist on all agricultural commodity assets 152
of an agricultural commodity handler in favor of any of the 153
following:154

       (1) Claimants, including lenders, who possess receipts 155
covering grain owned or stored by the handler;156

       (2) Claimants who possess written evidence of ownership other 157
than a receipt disclosing a storage obligation of the handler, 158
including tickets;159

       (3) Claimants who surrendered receipts as part of an 160
agricultural commodity sales transaction but were not paid fully 161
for the agricultural commodity and the handler failed within 162
twenty-one days after the surrender;163

       (4) Claimants who possess any other written evidence of the 164
sale of agricultural commodities to the handler for which they 165
were not paid fully, including the sale of agricultural 166
commodities for a nominal sum under a feed agreement.167

       (C) The lien that shall secure all claims described in 168
division (D) of this section, shall arise, attach to the 169
agricultural commodity assets of an agricultural commodity 170
handler, and become effective at the time of the delivery of the 171
agricultural commodity for sale or for storage under a bailment 172
agreement, commencement of the storage obligation, or when funds 173
are advanced by the lender, and shall terminate when the liability 174
of the agricultural commodity handler to the claimant is 175
discharged, provided that the priority of each lien among the 176
respective claimants shall not relate to the date the claim arises 177
but shall be governed by the priorities established in division 178
(D) of this section. In the event of a failure, the lien claims of 179
all claimants shall be considered to be assigned by operation of 180
this section to the department of agriculture, and in the event of 181
a failure and subsequent liquidation, the lien shall transfer over 182
to assets or proceeds of assets either received or liquidated by 183
the department. The lien established under this section shall have 184
priority over all competing lien claims asserted against the 185
agricultural commodity assets.186

       (D) Except as provided in division (E) of this section, in 187
the event of a failure, the director of agriculture shall possess 188
exclusive authority to enforce the lien claims and allocate the 189
proceeds as follows:190

       (1) First priority against all agricultural commodity assets 191
shall be the following:192

       (a) Claimants, including lenders, who possess receipts 193
covering grain owned or stored by the agricultural commodity 194
handler;195

       (b) Claimants who possess written evidence of ownership other 196
than receipts disclosing a storage obligation of the handler, 197
including tickets;198

       (c) Claimants who surrendered receipts as part of an 199
agricultural commodity transaction, but were not paid fully for 200
the agricultural commodity and the handler failed within 201
twenty-one days after the surrender.202

       (2) Second priority against all agricultural commodity assets 203
shall be to claimants who possess written evidence of the sale of 204
an agricultural commodity, including, but not limited to, tickets, 205
delayed price agreements, or similar agricultural commodity 206
delivery contracts who completed delivery and pricing within 207
thirty days immediately prior to the failure of the handler.208

       (3) To the extent not necessary to satisfy first and second 209
priority claimants, all other claimants who possess written 210
evidence of the sale of agricultural commodities to the handler 211
shall participate in the pro rata distribution of the remainder of 212
the agricultural commodity assets in an amount not to exceed the 213
value of each claim.214

       (E) In the event that any adversary proceeding is commenced 215
to recover agricultural commodity assets upon which the lien 216
imposed in this section is imposed and the department declines to 217
enter the proceeding, the director, upon application to the 218
director by any claimant, shall assign to the claimant the 219
applicable lien to permit the claimant to pursue the claimant's 220
lien in the adversary proceeding to the extent the action will not 221
delay the resolution of the proceeding, the prompt liquidation of 222
the assets, or the ultimate distribution of the assets to all 223
claimants.224

       Sec. 926.06.  (A) The director of agriculture may issue a 225
handler's license, or renewal thereof, upon the payment of the 226
prescribed application fee, if the director is satisfied that the 227
applicant meets the standards of financial responsibility required 228
under this section and has complied with this chapter and the 229
rules adopted under it.230

       (B)(1) On the effective date of this amendment, eachEach231
applicant for a handler's license, or renewal thereof, shall have 232
and maintain current assets equal to or greater than current 233
liabilities and a total net worth equal to at least tenfifteen234
cents per bushel for the total number of bushels of agricultural 235
commodities that the applicant handled during the immediately 236
preceding twelve-month period to cover any indebtedness arising 237
from the applicant's operations as a licensed handler. One year 238
after the effective date of this amendment, the total net worth 239
requirement shall increase to eleven cents per bushel. For the 240
next four years, the requirement shall continue to increase by one 241
cent per bushel each year on the anniversary of the effective date 242
of this amendment, so that five years after the effective date of 243
this amendment, an applicant's total net worth shall be equal to 244
at least fifteen cents per bushel for the total number of bushels 245
of agricultural commodities that the applicant handled during the 246
immediately preceding twelve-month period.247

       (2) On the effective date of this amendment, ifIf an 248
applicant is applying for a handler's license for the first time 249
and did not handle any agricultural commodities during the 250
immediately preceding twelve-month period, the applicant shall 251
have an allowable total net worth of at least twenty-fivefifty252
thousand dollars to cover any indebtedness arising from the 253
applicant's operations as a licensed handler. One year after the 254
effective date of this amendment, this allowable total net worth 255
requirement shall increase to thirty thousand dollars. For the 256
next four years, the requirement shall continue to increase by 257
five thousand dollars each year on the anniversary of the 258
effective date of this amendment, so that five years after the 259
effective date of this amendment, an applicant's total net worth 260
shall be at least fifty thousand dollars.261

       (3) On the effective date of this amendment, noNo person 262
shall be licensed as a handler unless the person has an allowable 263
total net worth of at least twenty-fivefifty thousand dollars. 264
One year after the effective date of this amendment, this 265
allowable total net worth requirement shall increase to thirty 266
thousand dollars. For the next four years, the requirement shall 267
continue to increase by five thousand dollars each year on the 268
anniversary of the effective date of this amendment, so that five 269
years after the effective date of this amendment, the person's 270
total net worth shall be at least fifty thousand dollars.271

       (4) On the effective date of this amendment, anyAny272
deficiency in required total net worth may be compensated for by 273
an indemnity agreement executed by a person pledging personal 274
assets for the benefit of commodity creditors should the licensed 275
handler default in the licensed handler's obligations to the 276
creditors; a bond issued by a corporate surety company that is 277
authorized to do business under the laws of this state; or, at the 278
director's discretion, an irrevocable letter of credit issued by a 279
bank or other lending institution that is authorized by this state 280
or the United States to issue such letters of credit and is 281
subject to service of process in this state for any suit on the 282
bond or letter of credit. An indemnity agreement executed by a 283
person pledging personal assets shall be accompanied by financial 284
statements that reflect the person's financial position as an 285
individual and comply with the requirements of division (C) of 286
this section. A bond shall be made to the treasurer of state to be 287
deposited in the agricultural commodity depositors fund created 288
under section 926.16 of the Revised Code for the benefit of any 289
person who may be injured by the handler's failure to meet 290
obligations arising under this chapter. A letter of credit shall 291
be issued for the benefit of the department of agriculture and the 292
agricultural commodity depositors fund.293

       (5) The director shall adopt rules in accordance with Chapter 294
119. of the Revised Code specifying the assets for which credit 295
may be given in determining an applicant's total net worth.296

       (6) On the effective date of this amendment, regardless297
Regardless of the total number of bushels of agricultural 298
commodities that an applicant handled during the immediately 299
preceding twelve-month period, the applicant's total net worth 300
need not exceed a maximum of threefour hundred fifty thousand 301
dollars. One year after the effective date of this amendment, this 302
maximum total net worth need not exceed three hundred thirty 303
thousand dollars. For the next four years, this maximum total net 304
worth shall continue to increase by thirty thousand dollars each 305
year on the anniversary of the effective date of this amendment, 306
so that five years after the effective date of this amendment, an 307
applicant's total net worth need not exceed four hundred fifty 308
thousand dollars.309

       (C) In order for the director to determine if an applicant 310
meets the standards of financial responsibility required under 311
division (B) of this section, the applicant for a handler's 312
license, or renewal of a handler's license, shall submit financial 313
statements that have been prepared in accordance with generally 314
accepted accounting principles and that have been audited or 315
reviewed by an independent certified public accountant. The 316
financial statements shall consist of the applicant's balance317
sheet, income statement, statement of retained earnings or 318
statement of stockholder's equity, and statement of cash flows, 319
together with any explanatory footnotes or supplementary320
information accompanying theseall financial statements and 321
footnotes required by generally accepted accounting principles as 322
promulgated by the financial accounting standards board together323
with the independent accountant's report on the statements.324

       The financial statements accompanying an applicant's original 325
application shall be for a year ending within six months before 326
the date of application. Thereafter, the applicant applying for 327
renewal shall submit such statements not later than ninety days 328
after the end of the year covered by the statements.329

       The director may require an applicant for a handler's 330
license, or renewal of a handler's license, to submit financial 331
statements audited by an independent certified public accountant 332
if the director determines that the financial statements initially 333
submitted under this division are incomplete or otherwise 334
unsatisfactory.335

       (D) The director may prepare and publish statistical 336
abstracts of information obtained under this section without 337
disclosing details that would identify a particular applicant with 338
particular statistics. Such information otherwise is confidential 339
for purposes of section 102.03 of the Revised Code, and records of 340
the department of agriculture containing such information are not 341
otherwise public records under section 149.43 of the Revised Code.342

       Sec. 926.10.  The director of agriculture, by order, may 343
refuse to grant or may suspend or conditionally suspend a 344
handler's license, without prior hearing, when the director 345
determines that there is reasonable cause to believe that the 346
applicant or licensee:347

       (A) Has failed to maintain the insurance coverage required 348
under section 926.07 of the Revised Code;349

       (B) Has failed to maintain accurate and complete records and 350
accounts as required under section 926.11 of the Revised Code;351

       (C) Has failed to charge, collect, or remit the fee required 352
under division (B) of section 926.16 of the Revised Code;353

       (D) Has refused to allow the director or the director's 354
authorized representative to examine, at a reasonable time, the 355
applicant's or licensee's accounting records, accounts, 356
agricultural commodity inventories, or warehouse;357

       (E) Does not possess sufficient agricultural commodities to 358
cover the outstanding receipts or tickets issued or assumed by the 359
applicant or licensee under bailment agreements;360

       (F) Has issued a receipt in violation of this chapter or any 361
rules adopted under it;362

       (G) Does not have the net assets specified in division (B) of 363
section 926.06 of the Revised Code or has failed to obtain a bond 364
or other protection for any deficiency in required net assets as 365
provided in that division;366

       (H) Does not have the obligations for agricultural 367
commodities purchased under delayed price agreements secured or 368
represented as required under division (B) or (C) of section 369
926.29 of the Revised Code;370

       (I) Does not submit financial statements that comply with the 371
requirements of division (C) of section 926.06 of the Revised Code 372
within the applicable time period specified in that division;373

       (J) Does not notify the director of a statutory agent's 374
change of address or of the death, removal, resignation, or 375
revocation of the appointment of a statutory agent or does not 376
appoint another agent in accordance with section 926.051 of the 377
Revised Code.378

       The applicant or licensee to whom a denial, suspension, or 379
conditional suspension order is issued shall be afforded a hearing 380
in accordance with Chapter 119. of the Revised Code, after which 381
the director shall issue or deny the license applied for in the 382
pending application or reinstate or revoke the suspended or 383
conditionally suspended license. The director may suspend, 384
conditionally suspend, or revoke a license after a hearing held in 385
accordance with Chapter 119. of the Revised Code for any other 386
violations of this chapter or any rules adopted under it.387

       The director shall cause a notice to be posted on the 388
property of a person whose license has been suspended, 389
conditionally suspended, or revoked stating the limitations or 390
restrictions imposed on the person in the handling of agricultural 391
commodities as a result of the suspension, conditional suspension, 392
or revocation. The notice shall not be removed from the property 393
without written authorization from the director.394

       If a handler's license is revoked, the handler immediately 395
shall notify, in a manner determined by the director, all parties 396
that are storing agricultural commodities in the handler's 397
warehouse and all holders of receipts issued by the handler, if 398
known. The handler shall liquidate the commodities in the manner 399
determined by the director.400

       Sec. 926.17.  (A) The director of agriculture shall annually 401
review the debits of and credits to the agricultural commodity 402
depositors fund created in section 926.16 of the Revised Code and 403
shall make any adjustments in the fee required under that section 404
that are necessary to maintain the fund within the limits 405
established under this section. Not later than the first day of 406
March of each year, the director shall determine the proposed 407
amount of the fee based on the expected volume of agricultural 408
commodities on which the fee is to be collected and that are 409
likely to be handled under this chapter. The director shall make 410
any changes in the previous year's fee in accordance with Chapter 411
119. of the Revised Code. The fee shall become effective on the 412
following first day of June. It shall in no case exceed one-half 413
of one cent per bushel on all agricultural commodities on which 414
the fee is to be paid.415

       (B)(1) If, at the end of any fiscal year, the fund balance 416
exceeds tenfifteen million dollars, less any encumbered balances 417
or pending or unsettled claims, the fee required under division 418
(B) of section 926.16 of the Revised Code shall be waived until 419
the director, with the consent of the commodity advisory 420
commission created in section 926.32 of the Revised Code, 421
reinstates the fee to maintain the liquidity of the fund as 422
provided in division (B)(2) of this section.423

       (2) If, at any time, the director determines that the fund 424
balance, less any encumbered balances or pending or unsettled 425
claims, is less than eightten million dollars, the director, with 426
the consent of the commodity advisory commission, may reinstate 427
the fee required under division (B) of section 926.16 of the 428
Revised Code. If the director reinstates the fee, the director 429
shall notify all licensed handlers by certified mail, return 430
receipt requested, to begin collecting the fee not later than 431
ninety days after being notified.432

       Sec. 926.18.  (A) When a depositor has made a demand for 433
settlement of an obligation concerning an agricultural commodity 434
on which a fee was required to be remitted under section 926.16 of 435
the Revised Code and the licensed handler is experiencing failure, 436
as "failure" is defined in section 926.021 of the Revised Code, 437
and has failed to honor the demand, the depositor, after providing 438
the director of agriculture or the director's authorized 439
representative with evidence of the depositor's demand and the 440
dishonoring of that demand, may file a claim with the director not 441
later than six months after dishonor of the demand for 442
indemnification of the depositor's damages, from the agricultural 443
commodity depositors fund, to be measured as follows:444

       (1) The commodity advisory commission created in section 445
926.32 of the Revised Code shall establish the dollar value of the 446
loss incurred by a depositor holding a receipt or a ticket for 447
agricultural commodities on which a fee was required and that the 448
depositor delivered to the handler under a delayed price 449
agreement, bailment agreement, or feed agreement, or that the 450
depositor delivered to the handler before delivery was due under a 451
contract or other agreement between the depositor and handler. The 452
value shall be based on the fair market price being paid to 453
producers by handlers for the commodities on the date on which the 454
director received notice that the receipt or ticket was dishonored 455
by the handler. All depositors filing claims under this division 456
shall be bound by the value determined by the commission.457

       (2) The dollar value of the loss incurred by a depositor who 458
has sold or delivered for sale, exchange, or solicitation or 459
negotiation for sale agricultural commodities on which a fee was 460
required and who is a creditor of the handler for all or a part of 461
the value of the commodities shall be based on the amount stated 462
on the obligation on the date of the sale.463

       (B) The agricultural commodity depositors fund shall be 464
liable to a depositor for any moneys that are owed to the 465
depositor for commodities deposited with a licensed handler 466
pursuant to a transaction for which the handler must remit a fee 467
under division (B) of section 926.16 of the Revised Code and that 468
are not recovered through other legal and equitable remedies as 469
follows:470

       (1)(a) The liability of the fund shall equal one hundred per 471
cent of the depositor's loss as determined under division (A)(1) 472
of this section if any of the following applies:473

        (i) The commodities were stored with the handler under a 474
bailment agreement.475

       (ii) Payment for the commodities was tendered by the handler 476
and subsequently dishonored, such as payment by a check for which 477
there were insufficient funds or by a check that was written on an 478
account that was frozen by the financial institution.479

       (iii) The commodities were priced at the time of delivery to 480
the handler, the delivery occurred not more than thirty days prior 481
to the director's suspension of the handler's license under 482
division (E), (G), or (H) of section 926.10 of the Revised Code, 483
and the handler failed to pay for the commodities on or before the 484
date on which the suspension occurred.485

        (iv) The commodities were priced at the time of delivery to 486
the handler, the delivery occurred not more than ninety days prior 487
to the director's suspension of the handler's license under 488
division (E), (G), or (H) of section 926.10 of the Revised Code, 489
the commodities were subject to a written agreement for deferred 490
payment by the handler not later than ninety days following the 491
date of delivery, and the handler failed to pay for the 492
commodities on or before the payment date established in the 493
written agreement.494

        (b) If the deposit of commodities that were the subject of 495
the depositor's loss involves circumstances other than those 496
described in division (B)(1)(a) of this section, the liability of 497
the fund shall equal one hundred per cent of the first ten 498
thousand dollars of the loss and eighty per cent of the remaining 499
dollar value of that loss as determined under divisions (A)(1) and 500
(2) of this section.501

       (2) The aggregate amount recovered by a depositor under all 502
remedies shall not exceed one hundred per cent of the value of the 503
depositor's loss. If the moneys recovered by a depositor under all 504
remedies exceed one hundred per cent of the value of the 505
depositor's loss, the depositor shall reimburse the fund in the 506
amount that exceeds the value of that loss.507

       (C) The director, with the approvalrecommendation of the 508
commodity advisory commission, shall determine the validity of all 509
claims presented against the fund. A claim filed under this 510
section for losses on agricultural commodities other than 511
commodities stored under a bailment agreement shall not be valid 512
unless the depositor has made a demand for settlement of the 513
obligation within twelve months after the commodities are priced. 514
Any depositor whose claim has been refused by the director and the 515
commission may appeal the refusal either to the court of common 516
pleas of Franklin county or the court of common pleas of the 517
county in which the depositor resides.518

       The director shall provide for payment from the fund to any 519
depositor whose claim has been found to be valid.520

       (D) If at any time the fund does not contain sufficient 521
assets to pay valid claims, the director shall hold those claims 522
for payment until the fund again contains sufficient assets. 523
Claims against the fund shall be paid in the order in which they 524
are presented and found to be valid.525

       (E) If a depositor files an action for legal or equitable 526
remedies in a state or federal court having jurisdiction in those 527
matters that includes a claim against agricultural commodities 528
upon which the depositor may file a claim against the fund at a 529
later date, the depositor also shall file with the director a copy 530
of the action filed with the court.531

       In the event of payment of a loss under this section, the 532
director shall be subrogated to the extent of the amount of any 533
payments to all rights, powers, privileges, and remedies of the 534
depositor against any person regarding the loss.535

       The depositor shall render all necessary assistance to aid 536
the director in securing the rights granted in this section. No 537
action or claim initiated by the depositor and pending at the time 538
of payment from the fund may be compromised or settled without the 539
consent of the director.540

       (F) If, prior to June 20, 1994, a lawsuit, adversary 541
proceeding, or other legal proceeding is brought against a 542
depositor to recover money or payments from funds to which a 543
depositor has a right of indemnification under this section, and 544
the depositor retains legal counsel resulting in a cost or expense 545
to the depositor, upon the rendering of a judgment or other 546
resolution of the lawsuit, adversary proceeding, or other legal 547
proceeding, the director, in the director's discretion and with 548
the approval of the commodity advisory commission, may authorize 549
indemnification from the fund for attorney's fees paid by the 550
depositor. Any claim made by a depositor for the payment of 551
attorney's fees under this division shall be made in the same 552
manner as a claim under division (A) of this section.553

       Attorney's fees payable under this division shall be limited 554
to the actual hourly fee charged or one hundred dollars per hour, 555
whichever is less, and to a total maximum amount of three hundred 556
dollars.557

       Section 2. That existing sections 926.01, 926.021, 926.06, 558
926.10, 926.17, and 926.18 of the Revised Code are hereby 559
repealed.560