la-202609-dd8fd6d7bc: Grain and Cotton Indemnity Fund

Department of Agriculture and Forestry Office of Agro-Consumer Services Agricultural Commodities Commission Grain and Cotton Indemnity Fund (LAC 7:XXVII.191-215) Notice is hereby given in accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et seq., and through the authority granted in R.S. 3:3412.1, the Department of Agriculture and Forestry (LDAF), Office of Agro-Consumer Services, Louisiana Agricultural Commodities Commission, proposes to amend LAC 7:XXVII. Subchapter O. Grain and Cotton Indemnity Fund, Sections 191, 197, 199, and 215 to update references to statutory authority and the fund’s assessment rate. The department also proposes to repeal LAC 7:XXVII. Subchapter O. Grain and Cotton Indemnity Fund, section 203, because it is no longer necessary. Pursuant to R.S. 3:3412.1(B) the Louisiana Agricultural Commodities Commission shall charge an assessment on the value of all agricultural commodities sold to grain dealers and cotton merchants. This assessment was increased from one twenty-fifth of one percent to two twenty-fifths of one percent by Act 156 of the 2026 Regular Session. The proposed Rule changes update the above-mentioned sections to be consistent with law. The agency evaluated the proposed Rule change and determined it was necessary, consistent with law, and aligned with the agency’s mission. The benefits of the Rule outweigh the burdens and costs. The proposed Rule is written in plain language, in an effort to increase transparency. Title 7 AGRICULTURE AND ANIMALS Part XXVII. Agricultural Commodity Dealer and Warehouse Law Chapter 1.Louisiana Agricultural Commodities Commission Subchapter O.Grain and Cotton Indemnity Fund §191.Creation A.The Grain and Cotton Indemnity Fund is hereby created pursuant to R.S. 3:3412.1. AUTHORITY NOTE:Promulgated in accordance with R.S. 3:3412.1. HISTORICAL NOTE:Promulgated by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 35:629 (April 2009), amended by the Department of Agriculture and Forestry, Agricultural Commodities Commission, LR 37:510 (February 2011), amended LR 52: §197.Assessments A.The commission shall charge an assessment at the rate of 2/25 of one percent on the value of all agricultural commodities regulated under this Chapter which are purchased by grain dealers and cotton merchants licensed in this state. B.The assessments shall be levied only on commodities which are grown in Louisiana and that are regulated by the commission. C.The assessments shall be due and payable to the commission by the licensee at the first point of sale, except as otherwise provided for under §199 of this Part. D.The assessments shall be due to the commission on a monthly basis. E.Each grain dealer and cotton merchant shall send a completed copy of the Louisiana Grain and Cotton Indemnity Fund Monthly Assessment Report (supplied by the commission) and assessment to the commission by the fifteenth of each month for the preceding month. F.In the event no assessments are collected by the licensee, the licensee shall still submit a report each month to the commission on the approved form. AUTHORITY NOTE:Promulgated in accordance with R.S. 3:3412.1. HISTORICAL NOTE:Promulgated by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 35:629 (April 2009), amended by the Department of Agriculture and Forestry, Agricultural Commodities Commission, LR 37:510 (February 2011), amended LR 52: §199.Cotton Merchants Operating on a Cooperative Basis A.Cotton merchants operating on a cooperative basis shall pay the assessment rate of 2/25 of one percent of the value of the commodity at the time of each payment, including any initial advance payment, progress payments and final payment to its members as proceeds of the crop. AUTHORITY NOTE:Promulgated in accordance with R.S. 3:3412.1. HISTORICAL NOTE:Promulgated by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 35:629 (April 2009), amended by the Department of Agriculture and Forestry, Agricultural Commodities Commission, LR 37:510 (February 2011), amended LR 52: §203.Distribution of Funds for Claims from Prior Insolvency Repealed. AUTHORITY NOTE:Promulgated in accordance with R.S.3:3412.1 HISTORICAL NOTE:Promulgated by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 35:630 (April 2009), amended by the Department of Agriculture and Forestry, Agricultural Commodities Commission, LR 37:511 (February 2011), repealed LR 52: §215.Adjudicatory Hearings A.Findings of violations and imposition of penalties may be made only by a ruling of the commission based upon an adjudicatory proceeding held in accordance with the provisions of the Administrative Procedure Act. B.Whenever the commissioner has any reason to believe that a violation of R.S. 3:3412.1, or of any rules and regulations adopted pursuant to this Part has occurred, the commissioner may present the alleged violations to the commission for a determination. C.A hearing officer shall be appointed by the office of the attorney general to preside over the hearing. D.Notice of the alleged violation, the date of the adjudicatory hearing, and the conduct of discovery shall be as provided in the Administrative Procedure Act. E.The ruling of the commission shall be in writing and provided to the person charged with the violation, as provided by the Administrative Procedure Act. F.Any appeal from a ruling of the commission shall be in accordance with the Administrative Procedure Act. AUTHORITY NOTE:Promulgated in accordance with R.S. 3:3412.1. HISTORICAL NOTE:Promulgated by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 35:631 (April 2009), amended by the Department of Agriculture and Forestry, Agricultural Commodities Commission, LR 37:512 (February 2011), amended LR 52: Family Impact Statement The proposed Rule should not have any known or foreseeable impact on family formation, stability, and autonomy. In particular, the proposed Rule has no known or foreseeable impact on: 1.the stability of the family; 2.the authority and rights of persons regarding the education and supervision of their children; 3.the functioning of the family; 4.family earnings and family budget; 5.the behavior and personal responsibility of children; 6.the ability of the family or a local government to perform the function as contained in the proposed Rule. Poverty Impact Statement  The proposed Rule should not have any known or foreseeable impact on any child, individual, or family as defined by R.S. 49:973.B. In particular, there is no known or foreseeable effect on: 1.the effect on household income, assets, and financial security; 2.the effect on early childhood development and preschool through postsecondary education development; 3.the effect on employment and workforce development; 4.the effect on taxes and tax credits; 5.the effect on child and dependent care, housing, health care, nutrition, transportation, and utilities assistance. Small Business Analysis Pursuant to R.S. 49:974.6, methods for reduction of the impact on small business, as defined in the Regulatory Flexibility Act, have been considered when creating this proposed Rule. This proposed Rule is not anticipated to have an adverse impact on small businesses; therefore, a Small Business Economic Impact Statement has not been prepared. Provider Impact Statement The proposed Rule should not have any known or foreseeable impact on providers as defined by HCR 170 of the 2014 Regular Legislative Session. In particular, there should be no known or foreseeable effect on: 1.the effect on the staffing level requirements or qualifications required to provide the same level of service; 2.the total direct and indirect effect on the cost to the providers to provide the same level of service; or 3.the overall effect on the ability of the provider to provide the same level of service. Public Comments Interested persons may submit written comments to Gene Cavalier, Director of Agricultural Commodities, 5825 Florida Blvd, Suite 5000 Baton Rouge, LA 70806 or via email to gcavalier@ldaf.state.la.us. Comments will be accepted until 3 p.m. on October 10, 2026. Public Hearing No public hearing on this proposed Rule has been scheduled. If a public hearing is needed all interested parties will be afforded an opportunity to submit data, views, or arguments either orally or in writing. Interested parties may submit a written request to conduct a public hearing to Gene Cavalier, Director of Agricultural Commodities, 5825 Florida Blvd, Suite 5000 Baton Rouge, LA 70806 or via email attachments to gcavalier@ldaf.state.la.us; such request must be received by no later than 3 p.m. on October 10, 2026. Mike Strain, DVM Commissioner FISCAL AND ECONOMIC IMPACT STATEMENT FOR ADMINISTRATIVE RULES RULE TITLE: Grain and Cotton Indemnity Fund I.ESTIMATED IMPLEMENTATION COSTS (SAVINGS) TO STATE OR LOCAL GOVERNMENT UNITS (Summary) The proposed rule change will have a nominal effect on the expenditures to the Louisiana Department of Agriculture and Forestry (LDAF) to update assessment forms submitted by the licensee at the first point of sale for agricultural commodities. LDAF will be able to absorb these costs in their existing operating budget. The proposed rule change increases the voluntary fee that grain and cotton farmers pay. These funds go into the Grain and Cotton Indemnity Fund to protect farmers from financial losses if a licensed grain dealer or cotton merchant fails financially and cannot pay producers. Act 156 of the 2026 RS doubled the assessment into the fund from one twenty-fifth of 1% to two twenty-fifths of 1%. The proposed rule change also updates references to statutory authority and repeals language that is no longer necessary. II.ESTIMATED EFFECT ON REVENUE COLLECTIONS OF STATE OR LOCAL GOVERNMENTAL UNITS (Summary) The proposed rule change will increase Statutory Dedications deposited into the Grain and Cotton Indemnity Fund by an estimated average of $626,130 annually. Act 156 of the 2026 RS doubled the charged assessment that is collected by the LA Agricultural Commodities Commission on all agricultural commodities regulated under the authority at the first point of sale. Over the last five years, the commission has collected on average $626,130 annually for the Grain and Cotton Indemnity Fund. The proposed rule change would align the administrative code with Act 156 of the 2026 RS. III.ESTIMATED COSTS AND/OR ECONOMIC BENEFITS TO DIRECTLY AFFECTED PERSONS, SMALL BUSINESSES, OR NONGOVERNMENTAL GROUPS (Summary) The proposed rule change will increase costs for grain and cotton farmers who pay into the Grain and Cotton Indemnity Fund. The proposed rule change aligns the administrative code with Act 156 of the 2026 RS, which doubled the rate (from one twenty-fifth of 1% to two twenty-fifths of 1%) at which the Grain and Cotton Indemnity Fund accrues funds. The funds are held in a trust to pay producers for agricultural commodities sold to a licensee of the LA Agriculture Commodities Commission that becomes insolvent. IV.ESTIMATED EFFECT ON COMPETITION AND EMPLOYMENT (Summary) The proposed rule change is not anticipated to impact competition or employment in either the public or private sector. Rebecca DupreePatrice Thomas UndersecretaryDeputy Fiscal Officer 2609#034Legislative Fiscal Office