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.
Sec. 14.052. WAREHOUSE OPERATOR OBLIGATIONS. (a) The obligations of a warehouse operator include the obligation to: (1) deliver grain to a person holding a receipt for grain stored in the warehouse; and (2) maintain the quantity and quality of all grain not owned by the warehouse operator, including open storage grain. (b) Except as otherwise provided by this chapter or by department rule, the obligation of a warehouse operator to deliver grain to a person holding a receipt for grain stored in the public grain warehouse is controlled by Section 7.403, Business & Commerce Code. (c) If a warehouse operator accepts for storage, shipping, handling, purchase, or sale any grain that is nonfungible or for which identity must be preserved, the warehouse operator shall safeguard the grain from intermingling with grain that would impair or destroy the identity-preserved or nonfungible nature of the grain. Nothing in this section requires the warehouse operator to accept grain that is nonfungible or that requires identity preservation. (d) The warehouse operator remains liable for the quality and quantity of grain deposited at the warehouse and for any other obligations established under this chapter for any period during which the warehouse has been sealed or during any period of probation, suspension, or revocation imposed under this chapter or for grain abandoned by the warehouse operator unless: (1) the warehouse operator makes a written request to the department for access to the warehouse; (2) the request adequately describes why access is necessary to meet the warehouse operator's obligations under this chapter; (3) the request adequately describes what type of access is necessary to meet the warehouse operator's obligations under this chapter; (4) the request for access is reasonable; (5) allowing access would not impair the department's ability to preserve evidence, warehouse operator records, or depositor grain assets; and (6) the request is denied by the department or the department imposes unreasonable restrictions that prevent the operator from meeting the obligations described in the request. (e) The department is entitled, on behalf of depositors, to recover from the warehouse operator's bond the cost of damages suffered by depositors as a result of sealing the warehouse or as a result of the warehouse operator abandoning the warehouse and the grain contained in the warehouse. Acts 1981, 67th Leg., p. 1052, ch. 388, Sec. 1, eff. Sept. 1, 1981; Acts 1993, 73rd Leg., ch. 553, Sec. 2, eff. Sept. 1, 1993. Renumbered from Sec. 14.0091, 14.021 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.