1. A. The State Department of Agriculture shall administer the Commodity Storage Indemnity Fund. The Indemnity shall be established for the benefit of producers who have delivered commodities to a licensed public warehouse for storage as provided in the Public Warehouse and Commodity Indemnity Act. The Indemnity shall compensate producers for losses to their commodity while it is in the control of a chartered or licensed public warehouse, except losses covered by insurance as provided in Section 9-26 of this title.
2. B. When the Indemnity reaches Ten Million Dollars ($10,000,000.00), the two-mill assessment as provided in the Public Warehouse and Commodity Indemnity Act shall cease, unless the Ten Million Dollars ($10,000,000.00) is attained prior to the end of a harvest season, at which time the assessment shall continue until the end of that harvest season. If the balance of the Indemnity thereafter becomes less than Ten Million Dollars ($10,000,000.00), the two-mill assessment shall be reinstituted on an annual basis as necessary to attain a balance of Ten Million Dollars ($10,000,000.00) in the Indemnity. The Department shall have authority to invest the assessments. All proceeds of the investment shall be placed in the Indemnity. Two percent (2%) of the income for each year shall be paid to the Department for the conducting of warehouse examinations necessary for the protection of the Indemnity.
3. C. When a loss is incurred upon the commodity of a producer, which has been delivered to a warehouseman, or after receipt of the notice pursuant to Section 9-24 of this title, the producer shall present his claim to the Department. To verify the claim, the producer shall present a receipt or any additional evidence or both such receipt and evidence of loss that the Department might deem necessary. All producer claim payments shall be made by the Department from the Indemnity as soon as practicable and not later than one (1) year following the date of claim. The price per bushel of commodity shall be established on the day of the loss and shall be for the full market value on that day. If there is an insufficient amount of cash in the Indemnity to cover all claims for a certain year, payments shall be made on a pro rata basis up to one hundred percent (100%) of the total loss of each producer. If payment is not received in the amount of one hundred percent (100%) of total loss for a certain year, then such additional amounts shall be paid as funds become available in succeeding years until repayment of one hundred percent (100%) of total loss is attained. If, at any time, a producer receives payment totaling more than one hundred percent (100%) of total loss, such excess payment shall immediately be returned to the Indemnity. Upon final payment of a claim to a producer from the Indemnity, the producer shall subrogate his interest, if any, to the Department in a cause of action against any and all parties, to the amount of the loss that the producer was reimbursed by the Indemnity.
4. D. The producer shall, within one hundred twenty (120) days of the order of the Board establishing the date of loss, present the claim of the producer to the Board. If such claim of loss is not presented within the time and in the manner required by this section, the claim shall be forever barred and said producer shall forfeit all rights to remuneration or payment as provided in the Public Warehouse and Commodity Indemnity Act.
5. E. If at any time state funds are appropriated to the Indemnity for the purposes specified by this section, the Board shall establish the rules necessary and procedures to ensure that the State General Revenue Fund shall be reimbursed, from the assessments in an amount equal to the total appropriation made to the Indemnity. The reimbursement shall be made in a timely manner, provided the intents and purposes of this section to compensate producers for their losses as specified in this section shall not be adversely affected.

Amended by Laws 1986, c. 112, § 1, eff. July 1, 1986; Laws 1987, c. 125, § 15, emerg. eff. June 2, 1987; Laws 1990, c. 155, § 4, emerg. eff. May 1, 1990; Amended by Laws 1997, H.B. No. 1156 c. 10. § 20, adopted March 31, 1997, effective July 1, 1997 (superseded document available).