Ala. Admin. Code r. 80-6-5-.04

Current through Register Vol. 43, No. 1, October 31, 2024

Section 80-6-5-.04 - Only Authorized Receipts May be Used

(1) No warehouseman is authorized to issue any character or form of a receipt except that authorized by law and the rules and regulations of the State Board of Agriculture and Industries. Receipts now in use and approved by the State Board of Agriculture and Industries are approved receipts for use of public warehousemen.

(2) All endorsements on the warehouse receipt of the words stored in the open, shall be with a rubber stamp across the face of the receipts with letters of the words to be not less than 1/4 inch in height.

No receipts shall be used for representing cotton or other articles of value, stored in the open other than those which are in use for the storage of cotton or other articles of value within the warehouse.

(3) The Commissioner of Agriculture and Industries is authorized to negotiate and make arrangements by contract with a manufacturer of safety paper to have the seal of the Department of Agriculture and Industries watermarked in said paper for printing receipts approved for use by public warehousemen, and to cause the watermarked safety paper to be placed at the disposal of a contract printer. He is also authorized to negotiate and make arrangements by contract for printing of public warehouse receipts on the watermarked safety paper secured by contract from the manufacturer thereof. The printer shall make such bond or bonds for the faithful performance of his contract and the proper handling of the watermarked paper and orders of public warehousemen as the Commissioner may require.

All orders for receipts shall be made to the contract printer by the warehouseman and the printer will submit a copy of the order, in duplicate, to the Department of Agriculture and Industries for approval before the order is filled.

(4) Any warehouseman who for some extraordinary reason desires to print his receipts in approved form and/or as an approved Block receipt, on a safety paper other than that herein described, may do so after first obtaining a special permit from the Commissioner of Agriculture and Industries, provided the printer making such receipts posts the necessary bond that may be required by the Commissioner and meets all other terms required of the contract printer. Should the warehouseman contract for and use receipts, contrary to the provisions of this section, the Commissioner may himself, or through his agents, at his discretion, confiscate such illegal receipts wherever found. Also the Commissioner himself, or through his agents, may confiscate all unused receipts of warehousemen whose permits have been withdrawn or who have ceased to do a warehouse business.

(5) Warehousemen are also authorized to use and issue receipts printed upon tabulating machine cards provided such receipts otherwise comply with all requirements of the law and rules and regulations now in effect which govern the issuance of uniform warehouse receipts and such receipts must be issued in accordance with all of the requirements for receipts set out in this rule and the law.

(6) The Commissioner of Agriculture and Industries is authorized to enter into a contract with a manufacturer of tabulating business machine cards whereby such manufacturer will supply and furnish public warehouses storing cotton with tabulating machine cards pre-punched which comply with requirements of the Commodity Credit Corporation on which there shall be imprinted the uniform cotton warehouse receipts now required of such warehousemen. The manufacturer furnishing the tabulating machine card receipts shall be required to make and execute any bond that may be required by the Commissioner for the faithful performance of his contract and for the proper handling of receipts prepared for sale and distribution to public warehousemen together with other requirements which will enable the Commissioner of Agriculture and Industries to enforce the provisions of the Uniform Commercial Code and this rule.

(7) In addition to the above forms of warehouse receipts authorized for use, the form of electronically recording warehouse receipts knows as an electronic warehouse receipt (EWR) record is authorized for use provided:

1. that electronic warehouse receipts recorded, issued and filed meet the requirements of the regulations promulgated by the Consolidated Farm Services Agency (CFSA), formerly Agricultural Stabilization Conservation Services (ASCS), and published in the Federal Register and annually codified as 7 C.F.R. part 735, relating to the issuance of cotton warehouse receipts, which regulations are incorporated herein and made a part hereof by reference for use of the Commissioner of the Alabama Department of Agriculture and Industries (Commissioner) as he may deem necessary;

2. that the individual or entity which operates the central filing system (CFS) which stores the (EWR) records, called "provider", shall meet the requirements of 7 C.F.R. part 735, as determined by the Commissioner. Only provider applicants approved by the CFSA shall be considered eligible for approval as a provider in Alabama. Eligible provider applicants shall first apply and secure approval form the Commissioner prior to providing service. The Commissioner shall not approve applicants with an interest which may reasonable be deemed to be in conflict with provider status as determined by Commissioner. Commissioner is authorized to formulate provider agreement for use as he may prescribe. He may suspend or terminate a provider's agreement for cause at any time.

3. Approved providers shall furnish to Commissioner annual audit level financial statements and submit to electronic data processing audits in like form submitted to CFSA; provide the Commissioner, for Department purposes, with unrestricted access to the physical site where the CFS and off-site records are retained, unrestricted access of provider's CFS and all related and backup files at no charge; and provide in a timely manner requested information in either electronic or printed format or both at Commissioner's discretion.

4. Each provider shall maintain an "errors and omissions", and a "fraud and dishonesty" insurance policy showing users, holders, and warehousemen as payees, each having a minimum coverage of $2 million dollars with a deductible for each policy not to exceed $10,000. Provider shall provide Department with proof of such insurance upon request. Each policy shall contain a clause requiring written notification to Department thirty days prior to cancellation.

5. In addition to all other authority and power granted the Commissioner in the execution of the duties of the Department, as the same shall pertain to the regulation of EWR's for non-federally licensed warehousemen in the State of Alabama, the Commissioner's authority and power herein shall in all respects correspond to that of the CFSA under the provisions of 7 C.F.R. part 735.

(8) The Commissioner may enter into a contract with providers as may be necessary in order to perform his regulatory duties hereunder. The provider shall be required to make and execute any bond that may be required by Commissioner for the faithful performance of the contract and for the proper handling of EWR records together with other requirements which will enable the Commissioner to enforce the provisions of the Uniform Commercial Code, referenced federal regulations, Alabama law and this rule.

Author: Robert J. Russell

Ala. Admin. Code r. 80-6-5-.04

Filed April 19, 1992. Amended: Filed August 11, 1995; effective September 15, 1995.

Statutory Authority:Code of Ala. 1975, § 8-15-2.