Bill to require state visibility of federally licensed grain warehouses draws cautious support and requests for clarifications

Senator Barry DeKay introduced LB895 as a companion to LB894. The bill seeks to require that grain warehouses located in Nebraska, including those licensed under the United States Warehouse Act, hold state warehouse licenses (automatic state licensure for USDA-licensed warehouses) so the Public Service Commission can view both dealer and warehouse information and better detect looming failures.

Dan Watermeier (PSC) told the committee the proposal would improve the commission's ability to see whether inventory held in federally licensed warehouses is sufficient to satisfy state obligations, while limiting duplicative burdens. The PSC would not charge an additional fee to dually licensed warehouses and the amendment (AM1954) confers automatic state licensure without duplicate bonding; enforcement against USDA-licensed warehouses would require coordination or written consent from USDA.

Rocky Weber of the Nebraska Cooperative Council said his members were concerned about dual regulation and double fees; he acknowledged that AM1954 substantially addresses those concerns but urged the committee to ensure language preventing double fees is explicit. John Hansen (Nebraska Farmers Union) said the bill could be useful because USDA staffing has declined and that better coordination could protect producers. Committee members asked whether the new fees would go to the general fund or to PSC cash funds; sponsors said they will clarify the accounting and expect workshops and PSC reports prior to implementation.

Supporters argued dual visibility would allow the PSC to detect financial stress earlier and avoid producer losses; opponents worried about procedural overlap with federal regulation and the risk of duplicative costs if the dually licensed language is not precise. Sponsor closed saying the amendments and engagement with industry alleviated most concerns. The hearing ended with no committee vote taken that day.