Part 1.
TEXAS DEPARTMENT OF AGRICULTURE
Chapter 13.
GRAIN WAREHOUSE
The Texas Department of Agriculture (the department) proposes 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. The repeal is proposed 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 proposed 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. 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.
David Kostroun, Assistant Commissioner for the Regulatory Programs, has
determined that for the first five years the new sections are in effect, there
will be fiscal implications for state government due to the increase in licensing
fees. There will be an approximate increase in state revenue of $256,251.48
per year, as a result of enforcing or administering the amended sections.
There will be no anticipated cost to local government as a result of enforcing
or administering the repeal and new sections.
Mr. Kostroun has also determined that for each year of the first five years
the repeal and new sections are in effect, the public benefit anticipated
as a result of enforcing or administering the repeal and new sections will
be that costs of implementing the grain warehouse program will be recovered
as well as greater protection of stored grain as a result of more comprehensive
and updated requirements. The anticipated economic cost to the individual,
micro businesses and small businesses affected by the proposed sections will
be a $75 fee increase for each single facility or headquarters license as
well as a $100.00 fee increase for each additional facility operating under
a combination license. An inspection fee increase of $8.00 for each 10,000
bushels or a fraction of 10,000 bushels of the licensed storage capacity will
also result.
Comments on the proposal may be submitted to Rick Garza, Coordinator for
Grain Warehouse Program, Texas Department of Agriculture, P. O. Box 12847,
Austin, Texas 78711. Comments must be received no later than 30 days from
the date of publication of the proposal in the
Texas
Register
.
4 TAC §§13.1 - 13.4
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas Department of Agriculture or in the Texas Register office, Room
245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal of §§13.1-13.4 is proposed 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.
The code affected by this proposal is the Texas Agriculture Code, Chapter
14.
§13.1.Definitions.
§13.2.General Requirements.
§13.3.License and Permits.
§13.4.Fees.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on March 15, 2004.
TRD-200401905
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: April 25, 2004
For further information, please call: (512) 463-4075
4 TAC §§13.1 - 13.20
New §§13.1-13.20 are proposed 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.
The code affected by this proposal is the Texas Agriculture Code, Chapter
14.
§13.1.Definitions.
In addition to the definitions set out in the Texas Agriculture Code,
Chapter 14, Subchapter A, the following words and terms, when used in this
chapter, shall have the following meanings unless the context clearly indicates
otherwise.
(1)
Approved Warehouse--A public grain warehouse that has been
inspected by the department and found to be suitable for the storage of grain.
(2)
Authorized Personnel--Any person authorized by the warehouse
operator to sign warehouse receipts or otherwise act on behalf of the warehouse
operator.
(3)
Code--Texas Agriculture Code.
(4)
Company Owned Temporary Storage--Grain that is stored on
the ground or in a non-approved structure that:
(A)
is owned by the warehouse in which it is stored; and
(B)
is not covered by a negotiable warehouse receipt;
(5)
Company Owned Terminal Storage--Grain that is owned by
the warehouse and stored in another licensed warehouse.
(6)
Current License--A license that is neither delinquent,
expired, suspended or revoked.
(7)
Daily Position Report--A daily continuous inventory that
gives the amount of grain received for each kind and class of grain and type
of storage obligation. The amount of grain received, shipped out, or transferred
(from one type of storage obligation to another) for each transaction or load
as well as the total storage obligation of the warehouse at the close of each
day.
(8)
Delinquent License--A license that has not been renewed
and has been expired less than one year.
(9)
License--A public grain warehouse license.
(10)
Manager--A person responsible for the operation of the
warehouse.
(11)
Open Storage Grain Temporary--Grain that is stored on
the ground or in a non-approved structure that:
(A)
is received for storage by a public grain warehouse;
(B)
is not covered by a negotiable warehouse receipt; and
(C)
is not owned by the warehouse in which it is stored.
(12)
Open Storage Grain Terminal--Grain that:
(A)
is received for storage by a public grain warehouse in
another licensed warehouse;
(B)
is not covered by a negotiable warehouse receipt; and
(C)
is not owned by the warehouse in which it is stored.
(13)
Partial inspection--Inspections including but not limited
to the following inspections:
(A)
new facility inspection;
(B)
under the terms of a suspension or probation;
(C)
in response to a complaint that the warehouse operator
has not complied with duties and obligations provided for by this chapter
and the complaint is determined by the department to be valid.
(D)
as a follow up inspection to include:
(i)
shortages;
(ii)
records not immediately available at headquarters or where
access of records were refused during a previous inspection;
(iii)
ensure that record keeping discrepancies discovered during
a previous inspection have been corrected; or
(iv)
to monitor a suspension or probation; or
(v)
to monitor termination of arrangements for storing, shipping,
or handling or grain under the code.
(14)
Outstanding Warehouse Receipt--A receipt that has not
been returned to and cancelled by the warehouse operator.
(15)
Producer--The owner, tenant, or operator of land who has
an interest in, and receives all or part of the proceeds from the sale of
grain produced on the land.
(16)
Received--actual possession.
(17)
Temporary Storage--Grain that is stored on the ground
or in a non-approved structure with written permission from the department.
(18)
Violation--A failure to comply with any provision or requirement
of the code, Chapter 14, or a rule adopted under the authority of the code,
Chapter 14, an order of the Commissioner of Agriculture or the Commissioner's
designee, a Notice to Comply, a Notice of Suspension, or any other agency
order authorized by law, or commission of an offense defined by the code,
Chapter 14.
§13.2.General Requirements.
In addition to any other obligations set out in the Texas Agriculture
Code (the code), Chapter 14, Subchapter A, or these rules, the warehouse operator
shall be responsible for the general obligations of this section. In the event
of a conflict between these general obligations and the obligations established
elsewhere, the code shall control first and then the most specific provision
which provides the greatest protection to the depositor or other customer
of the warehouse. These responsibilities are in addition to any provided in
the code.
(1)
Warehouse operators shall comply with all applicable provisions
of the code, Chapter 14, these rules, and all other orders, notices, or requests
for reports or other information.
(2)
The following people shall be considered to have authority
to act on behalf of the warehouse operator: Sole proprietor, general or managing
partner, chief financial officer, chief operating officer, president, vice
president, treasurer, chief executive officer, manager, any person authorized
to sign warehouse receipts, any person authorized to negotiate or sign contracts
with producers of commodities regulated by the code.
(3)
In addition, the licensee shall also notify the department
in writing within 10 days of any change in:
(A)
billing address;
(B)
agent address;
(C)
managers;
(D)
personnel authorized to sign warehouse receipts; and/or
(E)
ownership.
(4)
A grain warehouse shall be considered suitable for storing,
shipping and handling grain if it meets the following requirements.
(A)
It is weather tight to protect grain from the elements
at all times except if approved for temporary storage by the department. (See §13.
14 of this title relating to Temporary Storage).
(B)
A grain warehouse shall keep open storage grain separate
from non-public storage facilities. An exception would be when a permanent
wall can be constructed to separate the two types of grain.
(C)
It is structurally sound so as to provide proper and adequate
storage for the commodity being stored and to prevent mixing of any grain,
which requires separate storage.
(D)
It provides a safe and adequate means of entry and exit
to all storage units.
(5)
The warehouse operator shall be responsible for ensuring
that all application materials, reports, or records are submitted or made
available to the agency. The action or lack of action of a third party shall
not relieve the warehouse operator of these responsibilities.
(6)
A licensee shall maintain a complete, correct and legible
daily position report, which shall be kept current as of the close of each
business day.
(7)
The daily position report shall declare all grain in the
warehouse or in temporary storage as either receipted grain, open storage
grain including terminal, or company-owned grain including terminal storage.
Company owned grain may be reported paid and unpaid, separately or combined
in the daily position report. Any change on the daily position report shall
be supported by at least one of the following documents:
(A)
a signed copy of the contract of purchase. Such contract
shall not be part of any scale weight ticket, settlement agreement, or other
unrelated document issued by the licensee;
(B)
a canceled check;
(C)
a canceled grain warehouse receipt; or
(D)
a scale weight ticket.
(8)
An expired warehouse receipt is non-negotiable and the
obligation transfers on the daily position report from warehouse receipted
to open storage. The depositor has the option to have a new negotiable warehouse
receipt issued after satisfying accrued storage and handling charges, or to
leave as an open storage obligation. The licensee has the option to offset
any accrued storage and handling charges. Before the offset, the licensee
shall provide 30 days advance notice by certified mail sent to the last known
address of the depositor. Such notice shall contain a statement of account
including, but not limited to, the kind of grain, quantity, current market
price and accrued storage and handling charges. Storage charges may be calculated
for the ten-year term at the present rate on the day of the offset, unless
the storage rate is indicated on the warehouse receipt.
(9)
Serial numbered scale weight tickets shall be issued sequentially
for each load of grain received at or shipped from a public grain warehouse
on the date of shipment or receipt. Each ticket shall show:
(A)
the gross weight, tare weight, and net weight of the grain,
without allowance for shrinkage or other discounts;
(B)
the date of transaction;
(C)
the kind and class of grain;
(D)
an indication as to whether the grain is inbound or outbound
grain;
(E)
the name and location of the grain warehouse;
(F)
the printed name and the Farm Service Agency farm number
or business address of the person to whom the ticket was issued;
(G)
the printed name and signature of the person issuing the
ticket; and
(H)
the name of the person weighing the grain, if different
from the person issuing the ticket.
(10)
Records shall be immediately available for inspection
at the licensed location during normal business hours. Upon request by the
department, a warehouse operator shall furnish copies of all requested records
within five business days.
(11)
A reasonable time is defined as regular business hours
of the grain warehouse. If the warehouse is a facility that has no employees
on site, then the regular business hours of the main headquarters will be
used. If a facility does not have regular hours, then 8:00 a.m. to 5:00 p.m.,
Monday thru Friday will be considered their regular hours.
(12)
Grain Warehouse records must be made available for immediate
inspection at the request of the inspector.
(13)
Access to records of businesses operated from the same
location that deal in grain must be made available for immediate inspection
at the request of the inspector.
(14)
Records related to multiple business operations at the
same location must be kept separate and not mixed with grain warehouse records.
(15)
Records must have a legend, code sheet, or key list showing
the meaning of any abbreviations or headings in main record keeping system
sufficient to allow inspection of the records without further interpretation
by warehouse operator, authorized agent, or other employee.
(16)
Records must be legible, correct, accurate and able to
be understood without asking the warehouse operator, authorized agent or other
employee.
(17)
Grain amount, when required, shall be stated in the unit
measure for the commodity in common use in the industry. (i.e. bushels, cwt.
or lbs.)
(18)
Any warehouse with a 3.0% or greater variance between
the measured grain position and the grain position as established by the daily
position report, on the date of measurement, may be suspended until the shortage
is corrected. During the suspension, the department is authorized to seize
any unused receipts, the daily position report, and the warehouse license
and hold same until the department is satisfied that the shortage is corrected.
§13.3.License and Permits.
(a)
A person required to be licensed shall apply on a form
prescribed by the department and in addition shall submit a continuous bond,
financial statement, verification of insurance, and if necessary a successor's
agreement and the fee(s) as required by §13.7 of this title (relating
to Fees). All forms may be obtained from the department.
(b)
Unless otherwise approved as a combination license required
by the Texas Agriculture Code (the code), §14.022, a person shall obtain
a separate license for each location.
(c)
The purchaser of a licensed grain warehouse facility shall
assume all outstanding warehouse obligations, including but not limited to
warehouse receipts or open storage accounts up to the amount of grain in storage
at the time of purchase.
(d)
If a license has expired, the grain warehouse operator,
upon request, shall surrender all unused warehouse receipts to the department.
(e)
A license may be denied or revoked if the applicant makes
a false statement in connection with the application or omits information
requested on the application.
(f)
An individual, corporate or partnership applicant may be
denied a license if the applicant has committed a violation of the code, Chapter
14, or had a public grain warehouse license revoked, within two years prior
to applying for a license.
(g)
A license to operate a public grain warehouse, issued under
the code, Chapter 14 and these rules, is not transferable.
(h)
A separate insurance policy is required for each individual
facility not part of a combination.
(i)
All facilities shall have a unique name.
(j)
A warehouse operator who is operating a public grain warehouse
under a license issued by the federal government will not be allowed to obtain
a State of Texas warehouse operator license covering the same warehouse.
(k)
A warehouse operator who is operating a public grain warehouse
under a license issued by the department must surrender that license upon
being issued a federal license covering the same warehouse.
(l)
A license that has not yet expired may be renewed when
accompanied by the required renewal form or application; continuous bond,
financial statement; verification of insurance, and the fee(s) required by §
13.7 of this title (relating to Fees). If a person's license has been expired
for one year or longer, the person may not renew the license but must comply
with the requirements and procedures for obtaining an original license.
(m)
A corporate or partnership applicant includes the business
entity itself, all corporate or company officers, all partners, and all stockholders
or shareholders who own, hold, or otherwise control 25% or more of the corporation's
or company's stock or shares. Partnership in this section means any form of
partnership and corporate means any business entity that is not a partnership.
§13.4.Bonding requirements.
(a)
The bond, required by the Texas Agriculture Code, §14.022,
shall be a single continuous bond, issued by a single corporate surety licensed
to do business in the State of Texas except for:
(1)
mid year capacity changes, provided that the separate bond
or bonds obtained for such capacity changes are combined into a single bond
prior to or upon renewal of the license; and
(2)
temporary storage that requires an additional bond will
be handled the same way as a mid year capacity change.
(b)
A single continuous bond is required for each combination
or individual facility not part of a combination.
(c)
For the purpose of determining whether a net worth deficiency
exists in the case of multiple licenses held or sought by a single warehouse
operator who has submitted a single financial statement combining the assets
of all warehouse operations, the storage capacity of all warehouses shall
be combined and compared with the net worth established by the single financial
statement. If a deficiency bond is needed, a single, separate net worth deficiency
bond apportioning bond liability among the various warehouse operations pro
rata (as specified by the department) is required.
§13.5.Insurance Requirements.
A warehouse operator must submit proof of insurance on a form prescribed
by the department.
§13.6.Financial Statements.
(a)
A notarized financial statement must be submitted on a
department-approved form unless it is submitted by an independent certified
public accountant.
(b)
A warehouse operator has 90 days from the end of the operator's
fiscal year to submit a new financial statement to the department.
(c)
The most current financial statement shall be on file at
the time of license renewal. A license will not be issued or renewed if the
warehouse operator fails to file the most current new financial statement
by May 31.
(d)
For a partnership, all assets subject to suit must be included
in the financial statement.
(e)
For a corporation, all assets subject to suit must be included
in the financial statement. No private assets can be included in this case.
(f)
For a sole proprietor, all assets subject to suit must
be included.
(g)
Temporary storage must meet all financial requirements
before a temporary permit may be issued.
§13.7.Fees.
(a)
Single warehouse license. The annual and renewal fee for
a single grain warehouse license is $150.00.
(b)
Combination warehouse license. The annual and renewal fee
for a combination grain warehouse license is $150.00 for the headquarters
location and $100.00 for each additional facility location.
(c)
Proration of fees. Initial application fees shall be prorated
based on the remaining months of the license year.
(d)
Inspection fees. The fee for an annual inspection is $12.00
for each 10,000 bushels or a fraction of 10,000 bushels of the licensed storage
capacity, or $100, whichever is greater.
(e)
Requested inspections.
(1)
The fee for an inspection to increase or decrease licensed
storage capacity including temporary storage is $12.00 for each 10,000 bushels
or a fraction of 10,000 bushels of the increase or decrease in storage capacity,
or $100.00, whichever is greater.
(2)
The fee for a partial inspection is $12.00 for each 10,000
bushels or a fraction of 10,000 bushels of the partial facility that is being
inspected, or $100.00, whichever is greater.
(3)
A partial inspection that covers issues other than capacity
will have a fee of $100.00.
§13.8.Capacity Changes.
(a)
A warehouse operator may not store grain in excess of the
licensed storage capacity.
(b)
An increase of total storage will be complete after the
following requirements are met.
(1)
Notification that an increase of capacity must be submitted
to the department on a form prescribed by the department.
(2)
The department's designation (number or lettering) of storage
units will be used for formal notices.
(3)
An additional bond may be required if the original bond
does not cover the increased amount. Combining of the bonds will be required
at time of license renewal.
(4)
Additional insurance may be required if the existing insurance
is not sufficient to cover the increased amount.
(5)
A new financial statement may be needed if the location
is separate or not part of the original facility. If the facility does not
meet the net worth requirements, then a deficiency bond is required.
(6)
Capacity changes are subject to inspection fees provided
in §13.7 of this title (relating to Fees).
(7)
An inspection by an authorized department employee must
be completed.
(8)
Requirements related to temporary storage are provided
in §13. 14 of this title (relating to Temporary Storage).
(c)
A decrease of total storage capacity will be completed
after the following requirements are met:
(1)
Notification that a decrease of capacity must be submitted
to the department on a form prescribed by the department.
(2)
An inspection by an authorized department employee must
be completed.
(3)
Capacity changes are subject to inspection fees provided
in §13.7 of this title.
§13.9.Voluntary Surrender of License (Voluntary Closeout); Going out of Business.
In order to close out a grain warehouse license, the following requirements
must be met.
(1)
All outstanding warehouse receipts must be cancelled by
the warehouse operator.
(2)
An inspection by an authorized department employee must
be completed.
(3)
Bonding requirements of the Texas Agriculture Code, §14.031,
must be met.
§13.10.Full Transfer or Sale of Warehouse Assets (New Owner).
(a)
All outstanding warehouse receipts must be cancelled by
the warehouse operator and reissued by the new owner.
(b)
An inspection by an authorized department employee must
be completed.
(c)
All licensing requirements for the new owner must be met
before the new license can be issued.
(d)
Shortage of grain at the time of sale must be adjusted
on the seller's daily position report before the sale of the facility can
be completed.
§13.11.Record Retention.
(a)
Receipts must be kept three years after cancellation or
expiration, whichever occurs first.
(b)
Daily Position Report must be kept three years after the
close out inspection is complete.
(c)
Scale weight tickets must be kept three years after the
date they are issued.
(d)
Contracts must be kept three years after the date of the
contract was fulfilled.
(e)
Customer Settlement Sheets must be kept three years after
the date of the last entry.
(f)
Fumigation records must be kept for two years from the
date of fumigation.
(g)
Other records required by the department to be kept must
have a record retention of three years.
§13.12.Warehouse Receipts.
(a)
A warehouse operator shall not issue a warehouse receipt
to anyone other than a depositor as defined by the Texas Agriculture Code
(the code) §14.001(a), (1) and the code, §14.054 (b).
(b)
A warehouse operator shall not issue a warehouse receipt
to a bank or financial institution unless the bank or institution fulfills
the requirements of a depositor.
(c)
If a receipt is lost or destroyed and is already canceled,
the warehouse operator must provide to the department a notarized statement
that the receipt was properly canceled.
(d)
The warehouse operator shall not store, maintain, keep
or otherwise be in possession of an issued receipt that has not been cancelled
except receipts made out in the name of the warehouse operator.
(e)
Any receipt returned to the grain warehouse operator must
be canceled at the time it is received. The warehouse operator shall write
the word "Cancel" across the front of the receipt.
(f)
A warehouse operator shall not issue a warehouse receipt
for grain that is approved for temporary storage.
(g)
Warehouse receipted grain must be kept in storage by the
operator until the warehouse receipt is canceled.
§13.13.Customer Settlement Sheets.
(a)
Multiple settlement sheets must be serially numbered and
sequentially used.
(b)
Tariffs shall be posted in a location accessible to the
public in all facilities.
(c)
Discounts or adjustments of any kind shall be posted along
with the tariffs.
§13.14.Temporary Storage.
(a)
A request to approve temporary storage is a requested inspection
and is subject to an inspection fee found in §13.7 of this title (related
to Fees).
(b)
A warehouse operator must give written notice to the department
that temporary storage will be needed and shall be submitted to the department
prior to use of the temporary storage. The notice shall contain the following
information:
(1)
name and license number of the facility;
(2)
the type and amount of grain that will be in temporary
storage;
(3)
the exact location and description of the temporary storage;
and
(4)
the delivery date the grain is expected.
(c)
A separate log from the Daily Position Report shall be
kept for temporary storage.
(d)
A warehouse operator cannot use temporary storage if suitable
storage is available at the licensed facility.
(e)
Company owned grain shall be the first grain moved to temporary
storage.
(f)
Open depositor's grain put in temporary storage must have
written approval by the owner of the grain.
(g)
A temporary permit for temporary storage grain is good
for 90 days and may be renewed if the department determines that quality of
grain has not been affected by weather conditions.
(h)
A temporary capacity permit for company owned grain or
open storage grain shall expire on May 1 of that licensing year for all grain
on the ground regardless of when issued.
(i)
The temporary storage must not cause the net worth to fall
below $0.25 per bushel of total licensed storage capacity; additional bond
must be given before use of additional capacity if net worth should fall below
that specific amount.
(j)
At any time the warehouse operator determines that more
temporary storage is needed, he will have 10 days from the date the amount
exceeded the temporary license to turn in additional bonding and insurance.
(k)
All requirements for temporary storage must be met whether
the location is on or off site of the original facility. In any case, temporary
storage cannot be located outside of the state.
(l)
Insurance requirements in §13.5 of this title (relating
to Insurance Requirements) must be met.
(m)
Bonding requirements in section §13.4 of this title
(relating to Bonding Requirements) must be met.
§13.15.Shortage of Grain.
(a)
A warehouse operator shall correct all shortages that are
greater than 3% within a 24-hour period or other specified time period assigned
by the department.
(b)
A warehouse operator shall notify the department when a
shortage has been corrected.
(c)
A warehouse operator may correct shortages by spot purchasing
and delivery, or transferring from company owned, grain of the same type with
equal or higher value. (i.e., class and grade- including subclass for wheat)
(d)
A warehouse operator may correct shortages by purchasing
the shortage amount from depositors.
(e)
A warehouse operator may correct shortages by purchasing
the difference between class and grade stored and class and grade of the replacement
grain, but only with written agreement from the depositor and documentation
of payment.
(f)
A shortage is considered corrected when replacement grain
is actually in storage at the same facility or actually in storage at a terminal
facility with proper documentation in the warehouse (with shortage) records
or when payment has been made to the depositor.
(g)
If a shortage is corrected by payment with a check that
is tendered for cashing within 30 days of its receipt by the depositor, the
shortage will be considered not corrected if the check is returned to the
depositor for insufficient funds.
§13.16.Customer Protection.
(a)
Receiving, shipping, handling, discounts, shrinkage, cleaning,
storage and any other charges must be conspicuously posted at a facility where
a scale is located.
(b)
Documentation of charges at time of payment or invoicing
shall be individually indicated down for each individual charge.
(c)
Business hours must be conspicuously posted at a facility
where a scale is located.
§13.17.Delivery of Stored Grain (Satisfaction of Storage Obligations).
A warehouse operator must ship grain, at the request of the receipt
holder who returns a warehouse receipt with orders to ship, within the time
period specified by the shipping order, or within the time period specified
by written agreement that clearly supercedes the shipping order. A written
agreement does not supercede a shipping order if it was signed prior to receipt
of the shipping order and clearly states that the written agreement shall
control time of shipment while the agreement is in effect to the exclusion
of any shipping orders. In the absence of a time period for shipment in the
shipping order or in the absence of a written agreement, grain must be shipped
within a reasonable time, not to exceed 48 hours unless approved by the department.
§13.18.Depositor Claims on Warehouse Operator's Bond.
(a)
Time at which claim amount becomes fixed is the day on
which the claim was submitted to the department.
(b)
A depositor may make a claim 2 years from the expiration
date of the warehouse-licensing year that the grain was entered in storage.
(c)
Requirements to submit claims are as follows.
(1)
All claims for each type of grain must be made separately
on a form prescribed by the department.
(2)
A depositor may not claim on behalf of another depositor
unless the depositor has attached a signed, written authorization by such
person authorizing the depositor to act on their behalf and must be attached
to the form prescribed by the department.
(3)
Claims must be supported by grain warehouse receipts, scale
tickets, or any other information pertinent to the claim and must accompany
the form prescribed by the department.
§13.19.Inspection and Enforcement.
(a)
Inaccessible or unsafe structures. If a storage structure
is inaccessible or unsafe, it will not be measured during an inspection and
will count as if there is no grain in the specific facility for that inspection.
(b)
Sealing of Warehouses.
(1)
When a warehouse is sealed, the warehouse operator is prohibited
from shipping stored grain unless authorized by the department.
(2)
Quality and quantity of stored grain is the warehouse operator's
responsibility when a warehouse is sealed.
§13.20.Suspension of a Grain Warehouse License.
A warehouse operator that does not submit the required fees, application,
bonding instrument or insurance will be suspended automatically until the
required documents are received by the department.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on March 15, 2004.
TRD-200401904
Dolores Alvarado Hibbs
Deputy General Counsel
Texas Department of Agriculture
Earliest possible date of adoption: April 25, 2004
For further information, please call: (512) 463-4075
Subchapter B. QUARANTINE REQUIREMENTS
Chapter 20.
COTTON PEST CONTROL