SB 25-176

Senate Bill 25-176, which has been signed into law, extends the Colorado Department of Agriculture's oversight of the "Commodity Handler and Farm Products Act" until 2032. It also raises the threshold for what qualifies as a small-volume dealer from $20,000 to $45,000 in annual purchases of farm products or commodities, allowing the commissioner to adjust this limit over time. Additionally, the bill removes marijuana from the definition of "commodity" under this act and changes how civil penalties are handled by transferring them to the state's general fund instead of a specific department fund. The law also prevents producers who own at least 5% of a dealer’s shares from collecting reimbursement through bonds or credits if they file injury claims against that dealer.

Official Summary

The act continues the department of agriculture's (department) oversight of the "Commodity Handler and Farm Products Act" for 7 years, until 2032. The act also increases the limit for qualifying as a "small-volume dealer" from $20,000 of farm products or commodities purchased per year to $45,000. The act permits the commissioner of agriculture (commissioner) to periodically adjust the small volume dealer limit. The act explicitly excludes marijuana from the definition of "commodity" under the "Commodity Handler and Farm Products Act". Under current law, civil penalties collected by the department are deposited into the inspection and consumer services cash fund (fund). The act requires those civil penalties to be transferred to the general fund rather than the department's fund. Under current law, a dealer or commodity handler must file a bond or irrevocable letter of credit (bond or credit) with the commissioner. The bond or credit is intended to cover any claims of injury submitted by a producer or owner against the dealer or commodity handler. The act prohibits a producer or owner from submitting a claim and collecting reimbursement from the bond or credit if the producer or owner is also the owner of at least 5% of the voting shares of the dealer or commodity handler or the dealer's or commodity handler's parent company. (Note: This summary applies to this bill as enacted.)

Votes