(1) A person shall not engage in the business of a commodity dealer in this state without having obtained a license issued by the department.
(2)  The type of license required shall be determined as follows:
(a)  A class 1 license is required if the commodity dealer purchases agricultural commodities by credit-sale contract or if the value of the agricultural commodities purchased by the commodity dealer from producers during the previous twelve (12) month period exceeds two hundred and fifty thousand dollars ($250,000), or if the value of the agricultural commodities expected to be purchased by the commodity dealer from the producers during the succeeding twelve (12) month period will exceed two hundred and fifty thousand dollars ($250,000). Any other commodity dealer may elect to be licensed as a class 1 commodity dealer.
(b)  A class 2 license is required for any commodity dealer if the value of the agricultural commodities purchased by the commodity dealer from producers during the previous twelve (12) month period exceeds ten thousand dollars ($10,000) and is less than two hundred and fifty thousand dollars ($250,000), or if the value of the agricultural commodities expected to be purchased by the commodity dealer from producers during the succeeding twelve (12) month period will be more than ten thousand dollars ($10,000) but less than two hundred and fifty thousand dollars ($250,000). A class 2 licensee whose purchases from producers exceed two hundred and fifty thousand dollars ($250,000) in value during any twelve (12) month period shall immediately apply for a class 1 license. If a class 1 license is denied, the person shall immediately cease doing business as a commodity dealer.
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Terms Used In Idaho Code 69-503

  • Appraisal: A determination of property value.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • dealer: means any person who solicits, contracts for, or obtains from an Idaho producer or producers, title, possession, or control of any agricultural commodity through his place of business located in the state of Idaho or through his place of business located outside the state of Idaho for the purpose of sale or resale or who buys, during any calendar year, at least ten thousand dollars ($10,000) worth of agricultural commodities from an Idaho producer or producers of the commodities. See Idaho Code 69-502
  • Department: means the department of agriculture of the state of Idaho. See Idaho Code 69-502
  • Director: means the director of the department of agriculture. See Idaho Code 69-502
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Month: means a calendar month, unless otherwise expressed. See Idaho Code 73-114
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means any individual, firm, association, partnership, corporation, or limited liability company. See Idaho Code 69-502
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
(3)  An application for a license to engage in business as a commodity dealer shall be filed with the department and shall be on a form prescribed by the department. A separate license is required for each location at which records are maintained for transactions of the commodity dealer.
(4)  A license application shall include the following:
(a)  The name of the applicant;
(b)  The names of the officers and directors if the applicant is a corporation;
(c)  The names of the partners if the applicant is a partnership;
(d)  The location of the principal place of business; and
(e)  Any other reasonable information the department finds necessary to carry out the provisions and purposes of this chapter.
(5)  A license applicant shall further provide a sufficient and valid bond as specified in section 69-506, Idaho Code.
(6)  A license applicant shall further provide a complete financial statement setting forth the applicant’s assets, liabilities and net worth. This financial statement shall be prepared by an independent certified public accountant or a licensed public accountant according to generally accepted accounting principles. The commodity dealer shall have and maintain current assets equal to or greater than current liabilities. Assets shall be shown at original cost less depreciation. Upon written request filed with the department, the director may allow asset valuations in accordance with a competent appraisal.
(7)  In order to receive and retain a commodity dealer’s license the following additional conditions must be satisfied:
(a)  For a class 1 license a commodity dealer shall have and maintain a net worth of at least fifty thousand dollars ($50,000) or maintain a bond in the amount of two thousand dollars ($2,000) for each one thousand dollars ($1,000) or fraction thereof of net worth deficiency; however, a person shall not be licensed as a class 1 commodity dealer if the person has a net worth of less than twenty-five thousand dollars ($25,000). A bond submitted for purposes of this subsection shall be in addition to any bond otherwise required under the provisions of this chapter.
(b)  For a class 2 license a commodity dealer shall have and maintain a net worth of at least twenty-five thousand dollars ($25,000) or maintain a bond in the amount of two thousand dollars ($2,000) for each one thousand dollars ($1,000) or fraction thereof of net worth deficiency; however, a person shall not be licensed as a class 2 commodity dealer if the person has a net worth of less than ten thousand dollars ($10,000). A bond submitted for purposes of this subsection shall be in addition to any bond otherwise required under the provisions of this chapter.
(8)  The department may require additional information or verification regarding the financial resources of the applicant and the applicant’s ability to pay producers for agricultural commodities purchased from them.
(9)  Any commodity dealer that accepts physical delivery of a commodity purchased directly from producers, for which the producers have not been paid, must insure the value of all commodities in his possession at full market price for insurable physical perils until all liabilities to producers have been paid.