4 Tex. Admin. Code § 13.2

Current through Reg. 49, No. 45; November 8, 2024

Section 13.2 - General Requirements

In addition to any other obligations set out in the Code , Chapter 14, or this chapter, 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.

(1) Warehouse operators shall comply with all orders, notices, or requests for reports or other information from the department.

(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 receipts, or 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 receipts; or

(E) ownership.

(4) A public grain warehouse shall be considered suitable for storing, shipping, and handling grain if it meets the following requirements.

(A) It is weathertight to protect grain from the elements at all times except if approved for temporary storage by the department (see § 13.14 of this chapter relating to Temporary Storage).

(B) A public 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 department . 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 that in terminal storage, or company-owned grain including that in terminal storage. Company owned grain may be reported as 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) proof of payment;

(C) a canceled receipt; or

(D) a scale weight ticket.

(8) An expired receipt is non-negotiable and the obligation transfers on the daily position report from receipted grain to open storage grain. The depositor has the option to have a new 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 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) Records related to multiple business operations at the same location must be kept separately and not mixed with public grain warehouse records.

(12) Records must have a legend, code sheet, or key list showing the meaning of any abbreviations or headings in the main record keeping system sufficient to allow inspection of the records without further interpretation by warehouse operator, authorized agent, or other employee.

(13) Records must be legible, correct, and accurate.

(14) 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.).

(15) 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.

4 Tex. Admin. Code § 13.2

The provisions of this §13.2 adopted to be effective May 17, 2004, 29 TexReg 4755; amended to be effective March 21, 2011, 36 TexReg 1816; Amended by Texas Register, Volume 47, Number 51, December 23, 2022, TexReg 8525, eff. 12/27/2022