2005 Idaho Code - 22-5125 — PROOF OF CLAIMS -- PROCEDURE -- HEARING

                                  TITLE  22
                         AGRICULTURE AND HORTICULTURE
                                  CHAPTER 51
                           SEED INDEMNITY FUND LAW
    22-5125.   PROOF OF CLAIMS -- PROCEDURE -- HEARING. After the director has
declared a failure, the department shall process the claims of producers
having paid or owing assessments who: (a) produce written evidence of transfer
together with the amounts of their unpaid claims, and (b) have "stored for
withdrawal" and provide written evidence of deposit.
    (1)  The department shall give written notice to and provide a reasonable
time of not less than thirty (30) days and not more than sixty (60) days for
producers to file their written verified claims, including any written
evidence, with the department.
    (2)  The department shall investigate each claim and shall notify in
writing each claimant, the seed buyer and the advisory committee of the
department's determination as to the validity and amount of each claim. A
claimant or seed buyer may request a hearing on the department's determination
within twenty (20) days of receipt of written notification of the
determination pursuant to chapter 52, title 67, Idaho Code. Upon determining
the amount and validity of the claim, the director shall pay to the claimant
an amount equal to ninety percent (90%) of the approved claim from the seed
indemnity fund. Prior to any payment from the fund to a claimant, the claimant
shall be required to subrogate and assign to the department his right to any
recovery from any other source. The claimant shall be entitled to seek
recovery of the remaining ten percent (10%), which was not assigned to the
department. The procedure to determine the value of any claim will be
established by rules.
    (3)  In the event of a shortage or inability to meet financial
obligations, the department shall determine each producer's pro rata share of
available seed crops and any deficiency shall be the claims of the producers.
Each type of seed crop shall be treated separately for the purpose of
determining shortages.
    (4)  The director shall not approve or pay any claim based on losses
resulting from transactions with persons unlicensed pursuant to this chapter.
The director shall not approve or pay any claim made on the seed indemnity
fund if the claim is for the payment of interest, attorney's fees, ancillary
costs, or punitive damages.
    (5)  If a producer's claim reveals that the assessment has not been paid
or collected, and the claim is otherwise valid, the amount of the assessment
shall be deducted from the claim payment.