Part 1.
TEXAS DEPARTMENT OF AGRICULTURE
Chapter 13.
GRAIN WAREHOUSE
4 TAC §§13.1 - 13.4
The Texas Department of Agriculture (the department) adopts
the repeal of §§13.1-13.4, and new §§13.1-13.20, concerning
the handling of grain warehouses under the Texas Agriculture Code (the Code),
Chapter 14, Subchapter A, without changes to the proposal published in the
March 26, 2004 issue of the
Texas Register
(29
TexReg 3008). The repeal is adopted to allow the department to proceed with
the promulgation of updated and more comprehensive procedures for licensing
of persons, and requirements for grain warehouse operators in the form of
new §§13.1-13.20. New §13.7 is also adopted to ensure that
costs associated with the administration of the department's grain warehouse
program are recovered, as required by the Texas Agriculture Code, §12.0144,
and directed by the Texas Legislature, 78th Session, 2003. In addition, the
adoption of new §§13.1-13.20 will result in greater protection of
stored grain as a result of more comprehensive and updated requirements.
New §13.1 defines terms used in these sections. New §13.2 identifies
general requirements for the operation of a grain warehouse. New §13.3
clarifies the procedures for obtaining a license and permits. New §13.4
sets requirements for obtaining a bond. New §13.5 sets requirements for
insurance coverage. New §13.6 identifies procedures for completion of
a financial statement. New §13.7 establishes fees for a license and inspections.
New §13.8 identifies requirements for capacity changes of a grain warehouse.
New §13.9 identifies procedures for the closeout of a grain warehouse.
New §13.10 identifies requirements for the transfer or sale of a grain
warehouse. New §13.11 identifies requirements for record retention of
grain warehouse documents. New §13.12 sets requirements for the issuance
of warehouse receipts. New §13.13 sets requirements for customer settlement
sheets. New §13.14 sets requirements for the temporary storage of grain.
New §13.15 identifies requirements for correcting shortages of grain.
New §13.16 identifies procedures for posting grain warehouse documents
and business hours for the public. New §13.17 establishes requirements
for the delivery of stored grain. New §13.18 identifies procedures for
filing a claim. New §13.19 establishes procedures related to inspection
of unaccessible and unsafe grain warehouses and requirements related to grain
warehouses that have been sealed. New §13.20 establishes requirements
for the suspension of a grain warehouse license.
Comments on the proposal were received from the Texas Grain and Feed Association
(TGFA) concerning the increase in inspection fees. TGFA indicated that they
recognize that the department is under legislative mandate to recover costs
but when faced with a 300% increase in fees, the grain warehouse industry
would accept the fee increase easier if there were also signs of recovering
costs for the expense side of the program. TGFA also pointed out that the
federal grain warehouse program becomes less costly than the state warehouse
program for warehouses above two million to two and half million bushels.
TGFA believes that the larger warehouses will opt for the federal program
and the warehouses that remain will face additional increases to make up for
lost revenue.
The department appreciates the comments from TGFA comments and is understanding
of TGFA's concerns related to the fee increases. However, the department was
directed by the Legislature to increase its fees in order to recover the direct
and indirect costs to state government to implement state programs. In reviewing
revenue generated by agency fees, the department discovered that some agency
fees have not been increased for a number of years, while costs to the state
as a whole to implement programs has continued to increase. There have been
no changes to grain warehouse registration and inspection fees since 1991.
The department has and will continue to implement cost saving measures on
expenditures. The department will also conduct cost recovery analysis periodically
to adjust fees as needed. If larger warehouses opt for the federal program,
as suggested by TGFA, decreased program costs are expected because fewer inspection
costs will result. The department does not believe that warehouses that remain
in the state program will face additional fee increases as a result of lost
revenue. Accordingly, the proposed fees are adopted without changes
The repeal of §§13.1-13.4 is adopted under the Texas
Agriculture Code (the code), §14.015, which provides the department with
the authority to adopt rules necessary for the administration of requirements
and procedures for the operation of a grain warehouse; Code §14.023,
which provides the department with the authority to provide by rule for an
annual license fee for a grain warehouse license.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 27, 2004.
TRD-200402789
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Effective date: May 17, 2004
Proposal publication date: March 26, 2004
For further information, please call: (512) 463-4075
4 TAC §§13.1 - 13.20
New §§13.1-13.20 are adopted under the Texas Agriculture
Code (the code), §14.015, which provides the department with the authority
to adopt rules necessary for the administration of requirements and procedures
for the operation of a grain warehouse; Code §14.023, which provides
the department with the authority to provide by rule for an annual license
fee for a grain warehouse license.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on April 27, 2004.
TRD-200402788
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Effective date: May 17, 2004
Proposal publication date: March 26, 2004
For further information, please call: (512) 463-4075
Subchapter B. QUARANTINE REQUIREMENTS
Chapter 20.
COTTON PEST CONTROL