203C.40 - PRIORITIZATION OF INSPECTIONS OF WAREHOUSE OPERATORS.

        203C.40  PRIORITIZATION OF INSPECTIONS OF WAREHOUSE
      OPERATORS.
         The department shall develop a system to prioritize the
      inspections of warehouse operators provided in section 203C.2.  The
      system of prioritization shall be computed each year based on the
      risk of loss to the grain depositors and sellers indemnity fund
      caused by the possible insolvency of the warehouse operator.  The
      department shall compute the risk by utilizing an available
      statistical model to measure the financial condition of warehouse
      operators.  Procedures for utilizing the statistical model shall be
      adopted by department rules.  The statistical model shall be used to
      provide risk ratings.  A risk rating shall be used as a factor by the
      department to prioritize its inspection schedule.  The department may
      inspect a warehouse operator at any time based on a risk of loss to
      the fund according to the risk rating.  A substantial risk of loss to
      the grain depositors and sellers indemnity fund caused by the
      possible insolvency of the warehouse operator based on the
      statistical model shall be good cause.  
         Section History: Recent Form
         92 Acts, ch 1239, §77
         Referred to in § 203C.1, 203C.2