Agriculture Code § 14.021
A person may not operate a public grain warehouse unless they first get a license from the department in that person's name for that warehouse.
- Grain storage
- Warehouse operations
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A person may not operate a public grain warehouse unless they first get a license from the department in that person's name for that warehouse.
A warehouse operator may run multiple public grain warehouses or facilities as one combination only if the license and recordkeeping, receipt, ticket, reporting, location, and bond requirements are met; otherwise, the operator may not mix assets, obligations, records, or other business information across warehouses or
The department can issue, renew, or amend a license only after specified conditions are met, and applicants must file separate applications and pay required fees.
A warehouse operator may not use increased warehouse capacity unless it first gets written approval from the department.
Applicants for a license must file a bond with the department, and the bond has to meet specified form, amount, and surety requirements.
If the department finds an approved bond insufficient, it must require the warehouse operator to provide an additional bond. It may also require a bond when a license is suspended, revoked, or expired.
A warehouse operator cannot cancel an approved bond unless the department first approves a substitute bond.
A warehouse operator generally cannot cancel an approved letter of credit without department approval, and the issuer must use notice procedures and wait 91 days before cancellation takes effect.
Warehouse operators cannot repossess deposited cash or a certificate of deposit unless the department approves a substitute bond or letter of credit and the two-year waiting period has passed.
Applicants for a license generally must file insurance proof with the department, and must insure depositor grain for full market value in temporary or emergency storage. If loss occurs, the warehouse operator must settle with the depositor on demand, and a depositor may recover from the insurer if no settlement is mad
Warehouse operators generally may not cancel approved insurance unless the department approves a substitute policy; insurers may cancel only by notice, and cancellation is not effective until 31 days after mailing.
The department can require a warehouse operator to get additional insurance, and the operator must provide proof and keep that insurance when required.
Warehouse operators must post the original license immediately after receiving it, and they must post a copy of the license at each facility where grain is stored, handled, or shipped for hire.
Warehouse operators must deliver grain to receipt holders, preserve grain quality and quantity, and protect identity-preserved grain from mixing; the department may recover bond funds for depositor losses in some cases.
Warehouse operators must use and document numbered receipt forms, and may use electronic receipts only if the provider is approved.
A warehouse operator must issue the required ticket or receipt in the stated situations, and may not issue duplicate-numbered tickets or receipts except as allowed for duplicate receipts.
Rules for duplicate grain receipts and related bond requirements.
A warehouse operator may issue a receipt for grain it owns, in whole or part, if the grain is in its warehouse.
Warehouse operators must keep, retain, organize, report, and make available certain grain warehouse records and receipts.
A licensed public grain warehouse must post its storage rates and tariffs at the main office and each facility, and the warehouse operator must post rate or tariff changes at least 3 days before they take effect.
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