Idaho State Statutes - Idaho Attorney Directory

PROOF OF CLAIMS -- PROCEDURE -- HEARING -- INSPECTION OF
WAREHOUSE. In the event a warehouse or dealer fails, as defined in section
69-202(8), Idaho Code, the department shall process the claims of producers
who have paid or owe assessments as required by this chapter. Claims against a
failed warehouse or dealer shall include written evidence disclosing a storage
obligation or a sale or delivery of commodities.
(1) The department shall give notice and provide a reasonable time of not
less than thirty (30) days and not more than sixty (60) days to producers to
file their written verified claims, including any written evidence, with the
department.
(2) The department shall investigate each claim and shall notify each
claimant, the warehouseman or dealer, and the advisory committee of the
department's determination as to the validity and amount of each claimant's
claim. A claimant or warehouseman or dealer may request a hearing on the
department's determination within twenty (20) days of receipt of written
notification and a hearing shall be held by the department pursuant to chapter
52, title 67, Idaho Code. Upon determining the amount and validity of the
claim, the director shall pay to the claimant an amount equal to ninety
percent (90%) of the approved claim from the commodity indemnity fund. Prior
to any payment from the fund to a claimant, the claimant shall be required to
subrogate and assign his right to recover from any other source. The
department may then pay up to ninety percent (90%) of the approved claim to
the claimant. The department shall have a priority claim for that amount. The
claimant shall be entitled to seek recovery of the remaining ten percent (10%)
which was not originally assigned to the department. For the purpose of
determining the amount of the producer's claim, the value of a producer's
commodity shall be the lesser of: (a) the value of the commodity on the date
the director declared the warehouse or dealer to have failed or to have failed
to comply with the provisions of this chapter or rules promulgated thereunder;
(b) the contract price as listed on a valid contract; or (c) the value of the
commodity represented on the contract on the date the contract was signed. The
value shall be determined by a survey of the available market price reports or
markets of similar facilities within the same geographic location as the
failed facility.
(3) The department may inspect and audit a failed warehouseman or
dealer. In the event of a shortage, the department shall determine each
producer's pro rata share of available commodities and the deficiency shall be
considered as a claim of the producer. Each type of commodity shall be treated
separately for the purpose of determining shortages.
(4) The director shall not approve or pay any claim made on the commodity
indemnity fund if the claim is based on losses resulting from the deposit,
sale or storage of commodities in an unlicensed warehouse or dealer.
(5) The fund shall not be liable for claims filed against a warehouse or
dealer in good standing who has voluntarily relinquished their license if such
claims are not filed with the department within six (6) months of the closing.

Click here to visit the Official Idaho State Statutes