Senate Bill 25-176 Reengrossed

A Bill for an Act

• Page 1, Line 101Concerning the continuation of the "Commodity Handler

• Page 1, Line 102and Farm Products Act", and, in connection therewith,

• Page 1, Line 103implementing the recommendations contained in the

• Page 1, Line 1042024 sunset report by the department of regulatory

• Page 1, Line 105agencies.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)

Sunset Process - Senate Agriculture and Natural Resources Committee. The bill continues the department of agriculture's (department) oversight of the "Commodity Handler and Farm Products Act" (act) for 7 years until 2032.

The bill also increases the "small-volume dealer" limit (limit) from $20,000 to $45,000. The limit is a limit on the amount of farm products or commodities that a person may buy, in aggregate, per year. The bill permits the commissioner of agriculture to periodically adjust the limit.

The bill explicitly excludes marijuana from the definition of "commodity" under the act.

Under current law, civil penalties collected by the department for violations of the act are deposited into the inspection and consumer services cash fund (fund). The bill requires those civil penalties to be transferred to the general fund rather than the department's fund.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 24-34-104, repeal (26)(a)(XI); and add (33)(a)(X) as follows:

• Page 2, Line 324-34-104.  General assembly review of regulatory agencies

• Page 2, Line 4and functions for repeal, continuation, or reestablishment - legislative

• Page 2, Line 5declaration - repeal. (26) (a)  The following agencies, functions, or both, are scheduled for repeal on September 1, 2025:

• Page 2, Line 6(XI)  The licensing and regulation of persons by the department of agriculture in accordance with article 36 of title 35;

• Page 2, Line 7(33) (a)  The following agencies, functions, or both, are scheduled for repeal on September 1, 2032:

• Page 2, Line 8(X)  The licensing and regulation of persons by the

• Page 2, Line 9department of agriculture in accordance with article 36 of title 35.

• Page 2, Line 10SECTION 2.  In Colorado Revised Statutes, amend 35-36-109 as follows:

• Page 2, Line 1135-36-109.  Repeal of article - subject to review. This article 36

• Page 2, Line 12is repealed, effective September 1, 2025 2032. Before the repeal, the

• Page 2, Line 13licensing functions of the commissioner are this article 36 is scheduled for review in accordance with section 24-34-104.

• Page 3, Line 1SECTION 3.  In Colorado Revised Statutes, 35-36-102, amend (34) introductory portion and (34)(c) as follows:

• Page 3, Line 235-36-102.  Definitions. As used in this article 36, unless the context otherwise requires:

• Page 3, Line 3(34)  "Small-volume dealer" means a person who that:

• Page 3, Line 4(c)  Subject to adjustment made by the commissioner by

• Page 3, Line 5rule, as authorized under section 35-36-103 (1)(c), buys less than

• Page 3, Line 6twenty forty-five thousand dollars' worth of farm products or

• Page 3, Line 7commodities, in aggregate, per year from the owners for processing or resale; and

• Page 3, Line 8SECTION 4.  In Colorado Revised Statutes, 35-36-103, add (1)(c) as follows:

• Page 3, Line 935-36-103.  Commissioner - rules - delegation of powers and

• Page 3, Line 10duties. (1) (c)  The commissioner may by rule periodically adjust

• Page 3, Line 11the purchase limit for qualification as a small-volume dealer as set forth in section 35-36-102 (34)(c).

• Page 3, Line 12SECTION 5.  In Colorado Revised Statutes, 35-36-313, amend (1)(m) as follows:

• Page 3, Line 1335-36-313.  Unlawful acts - definition. (1)  It is unlawful and a violation of this part 3 for any person to:

• Page 3, Line 14(m)  If licensed as a small-volume dealer, purchase twenty

• Page 3, Line 15forty-five thousand dollars' worth or more of farm products in one year

• Page 3, Line 16from the owner for processing or resale. Violation of this subsection

• Page 3, Line 17(1)(m) is a class 2 misdemeanor. The commissioner may adjust the

• Page 3, Line 18threshold amount provided in this subsection (1)(m) by rule

• Page 3, Line 19pursuant to section 35-36-103 (1)(c).

• Page 4, Line 1SECTION 6.  In Colorado Revised Statutes, 35-36-102, amend (7) as follows:

• Page 4, Line 235-36-102.  Definitions. As used in this article 36, unless the context otherwise requires:

• Page 4, Line 3(7) (a)  "Commodity" means unprocessed small, hard seeds or

• Page 4, Line 4fruits such as wheat, corn, oats, barley, rye, sunflower seeds, soybeans,

• Page 4, Line 5beans, grain sorghum, industrial hemp, and such other seeds or fruits as the commissioner may determine.

• Page 4, Line 6(b)  "Commodity" does not include marijuana.

• Page 4, Line 7SECTION 7.  In Colorado Revised Statutes, 35-36-105, amend (5) as follows:

• Page 4, Line 835-36-105.  Civil penalties. (5)  The commissioner shall transmit

• Page 4, Line 9all money collected from civil penalties pursuant to this section to the

• Page 4, Line 10state treasurer, who shall credit it the money to the inspection and

• Page 4, Line 11consumer services cash fund created in section 35-1-106.5 general fund.

• Page 4, Line 12SECTION 8.  In Colorado Revised Statutes, 35-36-102, add (24.5) as follows:

• Page 4, Line 1335-36-102.  Definitions.  As used in this article 36, unless the context otherwise requires:

• Page 4, Line 14(24.5)  "Patronage interest" means shares or membership

• Page 4, Line 15interests, partnership interests, or other ownership interests in

• Page 4, Line 16a licensee that is a cooperative association, which shares or

• Page 4, Line 17interests are allocated and distributed to the producer in

• Page 4, Line 18proportion to that producer's patronage of the cooperative association.

• Page 4, Line 19SECTION 9.  In Colorado Revised Statutes, 35-36-216, add (1)(c)(III) as follows:

• Page 5, Line 135-36-216.  Bonds or irrevocable letters of credit - exemptions.

• Page 5, Line 2(1) (c) (III)  A producer or owner is not eligible for

• Page 5, Line 3reimbursement from the bond or the irrevocable letter of

• Page 5, Line 4credit for a claim submitted pursuant to this section if, at the time the claim is submitted, the producer or owner is:

• Page 5, Line 5(A)  The owner of at least five percent of the voting

• Page 5, Line 6shares, excluding patronage interests, membership interests,

• Page 5, Line 7partnership interests, or publicly traded shares of the licensee whose failure is the basis of the claim; or

• Page 5, Line 8(B)  The owner of at least five percent of the voting

• Page 5, Line 9shares, excluding patronage interests, membership interests,

• Page 5, Line 10partnership interests, or publicly traded shares of the parent

• Page 5, Line 11corporation of the licensee whose failure is the basis of the claim.

• Page 5, Line 12SECTION 10.  In Colorado Revised Statutes, 35-36-304, add (1)(c)(III) as follows:

• Page 5, Line 1335-36-304.  Bonds and irrevocable letters of credit -

• Page 5, Line 14exemptions. (1) (c) (III)  A producer, owner, small-volume dealer,

• Page 5, Line 15or other dealer is not eligible for reimbursement from the bond

• Page 5, Line 16or the irrevocable letter of credit for a claim submitted

• Page 5, Line 17pursuant to this section if, at the time the claim is submitted, the producer, owner, small-volume, dealer or other dealer is:

• Page 5, Line 18(A)  The owner of at least five percent of the voting

• Page 5, Line 19shares, excluding patronage interests, membership interests,

• Page 5, Line 20partnership interests, or publicly traded shares of the licensee

• Page 5, Line 21whose failure is the basis of the claim; or

• Page 6, Line 1(B)  The owner of at least five percent of the voting

• Page 6, Line 2shares, excluding patronage interests, membership interests,

• Page 6, Line 3partnership interests, or publicly traded shares of the parent

• Page 6, Line 4corporation of the licensee whose failure is the basis of the claim.

• Page 6, Line 5SECTION 11.  Act subject to petition - effective date. This act

• Page 6, Line 6takes effect at 12:01 a.m. on the day following the expiration of the

• Page 6, Line 7ninety-day period after final adjournment of the general assembly; except

• Page 6, Line 8that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 6, Line 9of the state constitution against this act or an item, section, or part of this

• Page 6, Line 10act within such period, then the act, item, section, or part will not take

• Page 6, Line 11effect unless approved by the people at the general election to be held in

• Page 6, Line 12November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.