CHAPTER 14. REGULATION OF PUBLIC GRAIN WAREHOUSE OPERATORS
AGRICULTURE CODE
TITLE 2. DEPARTMENT OF AGRICULTURE
CHAPTER 14. REGULATION OF PUBLIC GRAIN WAREHOUSE OPERATORS
SUBCHAPTER A. DEFINITIONS
Sec. 14.001. DEFINITIONS. (a) In this chapter:
(1) "Depositor" means a person who:
(A) delivers grain to a public grain warehouse for storing of
the grain for hire, handling of the grain for hire, or shipping
of the grain for hire;
(B) is the owner or legal holder of an outstanding receipt for
grain stored in the public grain warehouse issuing the receipt;
or
(C) is lawfully entitled to possession of grain stored in a
public grain warehouse.
(2) "Grain" means wheat, grain sorghum, corn, oats, barley, rye,
soybeans, or any other grain, peas, or beans for which federal
grain standards are established.
(3) "Open storage grain" means grain that:
(A) is received for storage by a public grain warehouse located
in this state;
(B) is not covered by a negotiable warehouse receipt; and
(C) is not owned by the lessee, owner, or operator of the
warehouse in which it is stored.
(4) "Public grain warehouse" means a building, bin, or similar
structure located in this state and used for:
(A) the storing of grain for hire, shipping of grain for hire,
or handling of grain for hire; or
(B) the purchasing and selling of grain, including grain on
which payment is deferred.
(5) "Receipt" means a negotiable Texas grain warehouse receipt
issued by a warehouse operator licensed under this chapter.
(6) "License" includes a renewal of or an amendment to a
license.
(7) "Scale weight ticket" means a load slip other than a receipt
given to a depositor or other person by a warehouse operator
licensed under this chapter on:
(A) initial delivery of the grain to the warehouse; or
(B) weighing of the grain on the grain warehouse operator's
scale, regardless of the destination of the grain.
(8) "Receipted grain" means grain that is stored in a public
grain warehouse and for which a Texas grain warehouse receipt has
been issued and has not been canceled.
(9) "Warehouse operator" means a person engaged in the business
of operating a public grain warehouse.
(b) For purposes of this chapter, the term "public grain
warehouse" as defined by Subsection (a)(4) does not include
railcars, trucks, boats, or other vehicles when used to transport
grain.
(c) For purposes of this chapter, in those sections that require
the warehouse operator to cooperate with or provide information
to the department or issue documents or deliver grain to
customers of the warehouse operator and in those sections that
require notice to be provided to the warehouse operator by the
department, the term "warehouse operator" includes all employees,
agents, or other persons authorized by the warehouse operator to
issue receipts or scale weight tickets or sign contracts or other
agreements.
Acts 1981, 67th Leg., p. 1046, ch. 388, Sec. 1, eff. Sept. 1,
1981. Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff.
Sept. 1, 2001.
SUBCHAPTER B. GENERAL PROVISIONS
Sec. 14.011. LIMITATION OF CHAPTER. This chapter does not apply
to:
(1) a public grain warehouse covered by a license for the
operation of a public grain warehouse issued by the United States
Department of Agriculture or other federal agency;
(2) an individual producer-owner who does not receive from
others grain for storage or handling for hire;
(3) a person whose business is manufacturing grain or selling
manufactured grain and who receives all grain with the intent to
manufacture the grain or sell manufactured grain; or
(4) a person who receives grain with the intent of using the
grain for planting seed or for feeding livestock on the premises
where the grain is received.
Acts 1981, 67th Leg., p. 1046, ch. 388, Sec. 1, eff. Sept. 1,
1981. Renumbered from Sec. 14.002 and amended by Acts 2001, 77th
Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.012. BUSINESS INFORMATION. (a) The following
information, prepared by the department in the course of its
regulatory authority under this chapter or required to be
submitted to the department in accordance with the department's
administration of this chapter, is confidential and not subject
to public disclosure:
(1) inspection or investigation reports containing information
regarding grain inventory; and
(2) financial information provided to the department to
establish net worth for purposes of licensing.
(b) Notwithstanding Subsection (a), inspection reports
containing information regarding grain inventory of a warehouse
operator or financial information of a warehouse operator
provided to the department to establish net worth may be:
(1) entered into evidence without sealing and made public in:
(A) an administrative proceeding commenced by the department
against a warehouse operator;
(B) a civil or criminal proceeding commenced by a county
attorney, a district attorney, or the attorney general, either
independently or on behalf of the department, against a warehouse
operator; or
(C) a civil proceeding commenced by the warehouse operator
against the department;
(2) provided to the issuer of a warehouse operator's bond or
letter of credit for the purpose of establishing a claim on the
warehouse operator's bond or letter of credit;
(3) disclosed to the public after:
(A) revocation of a warehouse operator's license;
(B) a voluntary closeout of all of the license holder's
facilities in this state;
(C) a petition for bankruptcy has been filed; or
(D) a receiver is appointed for the warehouse operator's assets;
or
(4) disclosed to any federal agency or any agency of another
state conducting a compliance inspection or criminal or civil
investigation involving the handling, storing, shipping, selling,
purchasing, or receipt of grain.
Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.013. RIGHT TO INTERVENE AND NOTIFICATION OF DEPARTMENT.
(a) The department may intervene in a suit for receivership,
garnishment, bankruptcy, or any other legal action affecting the
assets of a warehouse operator licensed under this chapter or the
grain assets of a depositor in a warehouse operated under a
license issued by the department, including, to assert the rights
of depositors not joined in the suit, a suit brought against a
bond or surety under Section 14.065.
(b) Any person who files a suit for receivership, garnishment,
or bankruptcy or who commences any other legal action affecting
the assets of a warehouse operator licensed under this chapter or
the grain assets of a depositor in a warehouse operated under a
license issued by the department, including a suit against a bond
or surety under Section 14.065, must give notice to the
department of the suit or legal action.
(c) Notice under this section must be in writing and delivered
to the department by certified mail, registered mail, or
commercial delivery service not later than the 20th day after the
date on which the suit or legal action is commenced.
(d) The judgment in an action described by Subsection (a) is
voidable if the notice required by this section is not provided.
(e) The court in which a suit or other legal action described by
Subsection (a) is commenced may impose appropriate sanctions
against a party who fails to provide the notice required by this
section.
Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.014. RECEIVERSHIP AFFECTING WAREHOUSE ASSETS. (a) A
person appointed receiver for the assets of a warehouse operator
licensed under this chapter is not required to obtain a license
from the department if the person:
(1) is bonded and insured as described by Subsection (b); and
(2) after being appointed, does not:
(A) receive additional grain for storing for hire, handling for
hire, or shipping for hire; or
(B) purchase grain for resale.
(b) A person appointed receiver shall maintain:
(1) a bond in the same amount required for a licensed warehouse
operator; and
(2) casualty insurance in the same amount and type as required
for a licensed warehouse operator.
(c) A person appointed receiver shall file proof of proper
bonding and verification of insurance with the department on or
before the date the person is appointed to act as receiver.
Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.015. POWERS AND DUTIES OF DEPARTMENT. The department
shall administer this chapter and may:
(1) investigate the storing, shipping, and handling of grain and
complaints relating to these activities through the inspection
of:
(A) any public grain warehouse;
(B) the grain stored in any warehouse; or
(C) all property and records pertaining to a warehouse;
(2) determine whether a warehouse for which a license has been
issued or applied for is suitable for properly storing, shipping,
or handling grain that is stored in or expected to be stored in
the warehouse;
(3) include field seed within the definition given to "grain" by
Section 14.001;
(4) require that a warehouse operator keep records or submit
reports the department determines are necessary in the
administration of this chapter;
(5) require a warehouse operator or depositor to terminate
storing, shipping, and handling agreements within a time
specified by the department:
(A) on closeout or revocation of the warehouse operator's
license;
(B) if grain has been abandoned by the warehouse operator or a
depositor and the warehouse operator or depositor cannot be
located after diligent effort; or
(C) on issuance of an injunction ordering an unlicensed
warehouse operator to cease operations;
(6) prescribe forms, including the form of receipts, bonds, or
applications for licenses;
(7) for purposes of determining compliance with this chapter or
amounts due to a depositor in an action taken by the department
against a surety or surety instrument under this chapter,
determine a warehouse operator's specific obligations to a
depositor, including:
(A) the type, quantity, or quality of open storage or receipted
grain due a depositor;
(B) the payment owed a depositor if a shortage or variance
exists in the type, quantity, or quality of a depositor's open
storage or receipted grain;
(C) the time and manner of delivery of grain due a depositor;
and
(D) whether a warehouse operator has failed to deliver a
depositor's open storage or receipted grain within a reasonable
time;
(8) by written order require a warehouse operator to deliver
grain of a particular type, quantity, and quality to a depositor
at a particular time and in a particular manner based on the
department's determination that the required delivery of grain is
due the depositor;
(9) classify grain by category, including open storage,
receipted, identity-preserved, company-owned, and abandoned
grain, and adopt rules regarding the storage, shipping, or
handling of classified grain, including recordkeeping and
accounting requirements;
(10) seize the records of a warehouse operator, including any
electronic records or the equipment or media on which the records
are stored, during a period of suspension of a warehouse
operator's license;
(11) seal or post as sealed, or both seal and post as sealed,
the warehouse of a warehouse operator:
(A) whose license has been suspended or revoked;
(B) whose license has expired; or
(C) who is unlicensed;
(12) seal or post as sealed, or both seal and post as sealed, a
warehouse that is found to be unsafe for inspection or unsuitable
for the storage of grain;
(13) during reasonable hours and to determine compliance with
this chapter, enter any facility where the department reasonably
believes grain is being handled, stored, shipped, purchased, or
sold to examine:
(A) the facility's storage, shipping, handling, and financial
records;
(B) grain; and
(C) physical structures;
(14) determine the suitability of a warehouse for storing,
shipping, or handling grain or for adequate and safe inspection
and, if found unsuitable for any of those purposes, order
corrective action;
(15) require the warehouse operator to notify the department
regarding:
(A) the handling of commodities that may pose a hazard to
humans, animals, the grain of other depositors in the warehouse
operator's warehouse, or the grain industry;
(B) existing hazards to inspection, including recent or ongoing
fumigations of warehouse facilities and unsafe or inoperable
warehouse equipment or structures; or
(C) any change in ownership, management, or legal or financial
status of a warehouse licensed under this chapter;
(16) require by rule that sales, purchase, or brokerage
agreements between a warehouse operator and a producer be in
writing and contain written terms or provisions the department
considers appropriate to protect producers, depositors, and
warehouse operators and to ensure the department's ability to
carry out its regulatory functions under this chapter;
(17) regulate a warehouse operator's temporary storage of grain
in a non-warehouse location or facility;
(18) require segregation of grain requiring identity
preservation;
(19) enter into cooperative agreements with agencies of the
federal government or other states to carry out the purposes of
this chapter;
(20) recover the unused warehouse receipts of a warehouse
operator:
(A) during any period of probation or suspension of the
warehouse operator's license;
(B) on revocation or voluntary surrender of the warehouse
operator's license; or
(C) during any period in which the warehouse operator is not
licensed, including after a failure to timely renew the license;
(21) order corrective action or impose any reasonable condition
of probation necessary to accomplish the regulatory goals
authorized by this chapter; and
(22) adopt rules necessary to carry out the provisions of this
chapter.
Acts 1981, 67th Leg., p. 1047, ch. 388, Sec. 1, eff. Sept. 1,
1981. Amended by Acts 1993, 73rd Leg., ch. 553, Sec. 1, eff.
Sept. 1, 1993; Acts 1995, 74th Leg., ch. 419, Sec. 3.06, eff.
Sept. 1, 1995. Renumbered from Sec. 14.003 and amended by Acts
2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
SUBCHAPTER C. LICENSING
Sec. 14.021. LICENSE REQUIRED. A person may not operate a
public grain warehouse without first obtaining from the
department a license in the person's name covering the warehouse.
Acts 1981, 67th Leg., p. 1047, ch. 388, Sec. 1, eff. Sept. 1,
1981. Renumbered from Sec. 14.004 and amended by Acts 2001, 77th
Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.022. LICENSING OF MULTIPLE WAREHOUSES. (a) In this
section:
(1) "Combination" means a group of two or more public grain
warehouses or facilities operated under a single set of complete
records. For purposes of this chapter, a combination is treated
as if it were a single public grain warehouse.
(2) "Facility" means two or more public grain warehouses located
in close proximity on the same general location. For purposes of
this chapter, and except when part of a combination, a facility
is treated as if it were a single public grain warehouse.
(b) A warehouse operator may operate all public grain warehouses
or facilities within an area no larger than 60 miles in diameter
as a combination if a single license covering the combination is
obtained from the department and:
(1) a single recordkeeping system covering only warehouses
within the combination is maintained by the warehouse operator;
(2) a single, unique set of sequentially numbered receipts
containing all information required by department rule and
bearing the name of the license holder and a unique combination
name, but not bearing individual warehouse or facility names, is
used for the combination;
(3) for each scale operated by the warehouse operator, the
warehouse operator issues and maintains a single, unique set of
sequentially numbered scale weight tickets containing all
information required by department rule and bearing the name of
the license holder and a unique name identifying the facility
where the scale is located;
(4) a single daily position report covering all storage
obligations of the combination and only the combination,
including company-owned grain, and containing all information
required by department rule is maintained;
(5) all original warehouse operator records, except for scale
weight tickets, relating to transactions or storage obligations
involving the combination are maintained at a single location and
separate from all other businesses and separately licensed
warehouse operations of the warehouse operator; and
(6) except as provided by department rule, a single unique bond
or bond substitute is used to cover the combination.
(c) Except as permitted while operating a combination, a
warehouse operator may not combine or intermingle assets, storage
obligations, liabilities of any kind, records or record entries,
contractual obligations, other transactions of any kind, or any
other business or operating information from different warehouses
or businesses owned, managed, or operated by the warehouse
operator. Each licensed combination or individually licensed
facility shall be operated as a separate entity under a single,
unique name and, except as provided by department rule, shall be
covered by a single, separate bond or bond substitute.
Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.023. LICENSING PROCEDURE. (a) The department may
issue, renew, or amend a license following a determination that:
(1) the applicant has filed an acceptable bond, a financial
statement in a form prescribed by the department, and proof of
casualty insurance required by this chapter;
(2) the warehouse is suitable for storage of grain and
inspection by department personnel;
(3) the applicant has complied with this chapter and rules
adopted under this chapter; and
(4) the applicant has met the net worth or deficiency bond
requirements of Section 14.031(e).
(b) An applicant must file a separate application for each
license, renewal, or amendment and shall accompany each
application for a license or renewal with an annual license fee,
as provided by department rule. The department shall prescribe
the information to be contained in the application. A person who
fails to submit a renewal fee on or before the expiration date of
the license must pay, in addition to the renewal fee, the late
fee provided by Section 12.024.
(c) If an applicant for a license previously operated a grain
warehouse in this state or another state and that warehouse
ceased to operate while the applicant was the operator, the
applicant must submit with the application evidence acceptable to
the department that all debts from the previous operation
evidenced by receipts have been satisfied. The department may not
issue a license to an applicant who the department determines has
not satisfied all such debts from a previous operation.
Acts 1981, 67th Leg., p. 1047, ch. 388, Sec. 1, eff. Sept. 1,
1981. Amended by Acts 1983, 68th Leg., p. 4283, ch. 682, Sec. 2,
eff. Sept. 1, 1983; Acts 1987, 70th Leg., ch. 50, Sec. 3, eff.
April 30, 1987; Acts 1989, 71st Leg., ch. 230, Sec. 32, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 9.05,
eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 419, Sec. 2.11,
eff. Sept. 1, 1995. Renumbered from Sec. 14.005 and amended by
Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.024. REQUIREMENT FOR INCREASING CAPACITY. A warehouse
operator may not use any increased warehouse capacity without
first obtaining written approval from the department.
Acts 1981, 67th Leg., p. 1048, ch. 388, Sec. 1, eff. Sept. 1,
1981. Renumbered from Sec. 14.007 and amended by Acts 2001, 77th
Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
SUBCHAPTER D. BONDING
Sec. 14.031. BOND. (a) In accordance with this section, each
applicant for a license shall file or have on file a bond with
the department.
(b) The bond must:
(1) be payable to the State of Texas;
(2) be executed by the applicant as principal;
(3) be issued by a corporate surety licensed to do business as
surety in the State of Texas; and
(4) be in a form and contain terms and conditions prescribed by
the department.
(c) The bond must be conditioned on faithful performance of:
(1) each obligation of a warehouse operator as to receipted
grain and open storage grain under this chapter and rules adopted
under this chapter, from the effective date of the bond until the
license is revoked or the bond is canceled, whichever occurs
first, whether or not the warehouse remains licensed; and
(2) except for a contract for the purchase of grain or to act as
broker for the grain, each obligation of a warehouse operator
under any contract with a depositor that exists on the effective
date of the bond or is assumed after the effective date of the
bond and before the license is revoked or the bond is canceled,
whichever occurs first and whether or not the warehouse remains
licensed.
(d) The bond must be in an amount of not less than $20,000 and
be based on six cents per bushel of storage capacity.
(e) If the actual net worth of an applicant equals less than 25
cents per bushel of storage capacity, the applicant shall file a
deficiency bond in an amount equal to the difference between the
actual net worth and an amount determined by multiplying 25 cents
times each bushel of storage capacity in the applicant's
warehouse. A deficiency bond is in addition to the bond required
of an applicant by this section.
(f) Except as provided by department rule, the applicant must
give a single bond meeting the requirements of this section to
cover warehouses licensed as a single facility or combination. A
single bond may not be used to cover more than one individually
licensed facility, more than one combination, or one or more
individually licensed facilities and one or more combinations.
(g) The liability of the surety of a bond required by this
chapter is limited to the face amount of the bond and does not
accumulate for each successive license period during which the
bond is in force.
(h) Subject to the approval of the department, a warehouse
operator may deposit the following with the department, for the
term of the license plus two years, in lieu of a bond required by
this section:
(1) cash;
(2) an irrevocable letter of credit, payable to the State of
Texas; or
(3) a certificate of deposit from a federally insured bank or
savings and loan institution authorized to do business in this
state, assigned to the State of Texas.
(i) The cash, letter of credit, or certificate of deposit under
Subsection (h) must be in the same amount or have a value in the
same amount as required for the warehouse bond.
(j) Any interest or income earned on an assigned certificate of
deposit accrues to the owner of the certificate during the time
of the assignment.
Acts 1981, 67th Leg., p. 1048, ch. 388, Sec. 1, eff. Sept. 1,
1981. Amended by Acts 1987, 70th Leg., ch. 50, Sec. 2, eff. April
30, 1987. Renumbered from Sec. 14.009 and amended by Acts 2001,
77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.032. ADDITIONAL BOND. (a) If the department determines
that an approved bond is insufficient, the department shall
require the warehouse operator to give additional bond.
(b) If a license has been suspended or revoked or has expired,
the department may require a bond from the warehouse operator to
protect depositors of grain for as long as any receipts or open
storage accounts remain outstanding.
Acts 1981, 67th Leg., p. 1049, ch. 388, Sec. 1, eff. Sept. 1,
1981. Renumbered from Sec. 14.012 and amended by Acts 2001, 77th
Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.033. BOND CANCELLATION. (a) A warehouse operator may
not cancel a bond approved by the department unless the
department first gives written approval of a substitute bond.
(b) The surety may cancel a bond by sending notice of intent to
cancel by registered or certified mail to the department.
Cancellation of a bond may not be effective before the 91st day
following the day on which the surety mails notice of intent to
cancel. On receipt of notice of cancellation of a bond, the
department shall promptly notify the warehouse operator involved.
Liability under the bond ceases to accrue on the effective date
of cancellation. Notwithstanding cancellation under this section,
the department or a depositor may collect under the bond for any
claim that arose during the period during which the bond was in
effect, provided that the claim is filed within the applicable
limitations period established under Section 14.065.
(c) The surety shall send a copy of the notice required by this
section to any government agency requesting it.
(d) Notwithstanding any other provision of this chapter, a
public grain warehouse license is automatically suspended if the
warehouse operator fails to file a new bond before the
cancellation of a bond is effective.
(e) The suspension of a license under this section continues as
long as the warehouse operator fails to maintain the bond
required by this chapter.
Acts 1981, 67th Leg., p. 1050, ch. 388, Sec. 1, eff. Sept. 1,
1981. Renumbered from Sec. 14.013 and amended by Acts 2001, 77th
Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.034. CANCELLATION OF LETTER OF CREDIT. (a) A warehouse
operator may not cancel a letter of credit approved by the
department in lieu of a bond unless the department gives written
approval of a substitute bond or letter of credit.
(b) The issuer of the letter of credit may cancel a letter of
credit by sending notice of intent to cancel by registered or
certified mail to the department. Cancellation of a letter of
credit may not take effect before the 91st day after the date the
issuer mails notice of intent to cancel. On receipt of notice of
cancellation of a letter of credit, the department shall promptly
notify the warehouse operator involved. Liability under the
letter of credit ceases to accrue on the effective date of
cancellation. Notwithstanding cancellation under this subsection
or other law to the contrary, the department or a depositor may
collect under the letter of credit for any claim that arose
during the period during which the letter of credit was in
effect, provided that the claim is filed within the applicable
limitations period established under Section 14.065.
(c) The issuer of a letter of credit shall send a copy of the
notice required by this section to any government agency
requesting the copy. Notwithstanding any other provision of this
chapter, a public grain warehouse license is automatically
suspended if the warehouse operator fails to file a new bond or
letter of credit before the cancellation of a letter of credit is
effective.
(d) The suspension of a license under this section continues as
long as the warehouse operator fails to maintain the bond or
letter of credit required by this chapter.
Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.035. CANCELLATION OF CERTIFICATE OF DEPOSIT OR CASH.
(a) A warehouse operator may not repossess a certificate of
deposit or cash approved by and deposited with the department in
lieu of a bond unless:
(1) the department gives written approval of a substitute bond
or letter of credit; and
(2) at least two years have passed after the expiration of the
last licensing period during which the certificate of deposit or
cash was deposited with the department in lieu of a bond.
(b) Notwithstanding any other provision of this chapter, the
department may not release a certificate of deposit or cash
deposited with the department while a claim filed within the
applicable limitations period established under Section 14.065 is
pending before the department or a court.
(c) A warehouse operator may, on written request to the
department, recover cash or a certificate of deposit from the
department before the expiration of the two-year period specified
in Subsection (a)(2) if:
(1) the department performs a closeout inspection;
(2) the department determines on the best available evidence
that no outstanding obligations exist at the time of the closeout
inspection;
(3) the warehouse operator submits with the written request a
bond:
(A) in an amount equal to six cents per bushel for 50 percent of
the total storage capacity of the facility or combination covered
by the cash or certificate of deposit the warehouse operator is
attempting to recover; and
(B) covering any failure of obligation that may have occurred
during all licensing periods covered by the cash or certificate
of deposit the warehouse operator is attempting to recover; and
(4) at least 30 days have passed since the closeout inspection.
(d) A claim against the bond required by Subsection (c) must be
filed with the department or in a court of competent jurisdiction
not later than the second anniversary of the date of the closeout
inspection.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
SUBCHAPTER E. INSURANCE
Sec. 14.041. CASUALTY INSURANCE. (a) Except as provided by
Subsections (c) and (d), an applicant for a license must file or
have on file with the department a certificate of insurance
evidencing that:
(1) the applicant has an effective policy of insurance issued by
an insurance company authorized to do business in this state or,
with the approval of the department, by an eligible surplus lines
insurer that meets the requirements of Chapter 981, Insurance
Code, and rules adopted by the commissioner of insurance under
that chapter; and
(2) the policy insures, in the name of the applicant, all
depositor grain that is or may be in the public grain warehouse
for its full market value against loss by or due to water or
other fluid resulting from an insured peril, excluding flood and
other rising waters resulting from natural causes, malicious
mischief, vandalism, smoke, fire, internal explosion, lightning,
hail, windstorm, hurricane, or tornado.
(b) If water or other fluid resulting from an insured peril,
excluding flood and other rising waters resulting from natural
causes, malicious mischief, vandalism, smoke, fire, internal
explosion, lightning, hail, windstorm, hurricane, or tornado
destroys or damages grain in a public grain warehouse, the
warehouse operator shall, on demand by the depositor and
presentation of a receipt or other evidence of ownership, make
settlement with the depositor of the grain. The amount of the
settlement shall be the average price paid for grain of the same
grade and quality on the date of the loss at the location of the
warehouse, minus the warehouse operator's charges and advances.
If a settlement is not made before the 31st day following the
date of demand, the depositor is entitled to seek recovery from
the insurance company.
(c) An applicant is not required to file a certificate of
insurance if the applicant certifies in writing, at or before the
time the certificate of insurance is due, that all grain within
the warehouse at the time the license is to be effective is or
will be owned by the applicant free of any lien. The applicant
shall file the required certificate of insurance on or before the
first day any grain not owned by the applicant free of any lien
is stored for hire, handled for hire, or shipped for hire.
(d) An applicant for a license shall insure depositor grain for
its full market value against loss by or due to fire or windstorm
if the grain is in temporary or emergency storage. The
certificate required under Subsection (a) must evidence that the
applicant has an effective policy of insurance under this
subsection before the applicant may store depositor grain in
temporary or emergency storage.
Renumbered from Sec. 14.011 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
196, Sec. 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1276,
Sec. 10A.505, eff. Sept. 1, 2003.
Sec. 14.042. INSURANCE CANCELLATION. (a) A warehouse operator
may not cancel an insurance policy approved by the department
unless the department gives written approval of a substitute
policy.
(b) The insurer may cancel an insurance policy by sending notice
of intent to cancel by registered or certified mail to the
department. Cancellation of an insurance policy is not effective
before the 31st day following the date the insurer mails notice
of intent to cancel. On receipt of notice of cancellation of an
insurance policy, the department shall promptly notify the
warehouse operator involved.
(c) The insurer shall send a copy of the notice required by this
section to any government agency requesting the copy.
(d) Notwithstanding any other provision of this chapter, a
public grain warehouse license is automatically suspended if the
warehouse operator fails to file a new certificate of insurance
before the cancellation of an insurance policy is effective or
fails to provide a certification of ownership under Section
14.041(c).
(e) The suspension of a license under this section continues as
long as the warehouse operator fails to maintain the insurance
required by this chapter.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.043. ADDITIONAL INSURANCE. (a) If the department
determines that an approved insurance policy is insufficient, the
department shall require the warehouse operator to obtain
additional insurance.
(b) If a license has been suspended or revoked or has expired,
the department may require continued insurance coverage by the
warehouse operator to protect depositors of grain for as long as
any receipts or open storage accounts remain outstanding.
(c) The warehouse operator shall obtain the additional insurance
required by this section and provide verification of the
additional insurance within a time specified by the department,
and the additional insurance shall be maintained or continued as
necessary to meet the requirements of this chapter.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
SUBCHAPTER F. WAREHOUSE OPERATOR OBLIGATIONS
Sec. 14.051. POSTING OF LICENSE. Each warehouse operator shall
immediately on receipt of a license post the original in a
conspicuous place at the primary recordkeeping location for the
individually licensed facility or combination. A copy of the
license must be conspicuously posted at each facility where grain
is stored for hire, handled for hire, or shipped for hire.
Renumbered from Sec. 14.008 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
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.
Sec. 14.053. RECEIPT FORMS. (a) A warehouse operator shall use
one set of serially numbered and sequentially issued receipts for
all warehouses operated under a single license. In addition to a
unique serial number, each receipt form must contain all of the
information prescribed by department rule. If further provided by
department rule, the warehouse operator shall request the receipt
forms from the printer on a form approved, prescribed, or
furnished by the department.
(b) The warehouse operator shall provide the department with an
exemplar of the receipt forms and an affidavit from the printer
showing the number of receipts printed and their serial numbers
before issuing any receipt from the printed set. The exemplar and
affidavit required by this subsection shall be provided each time
a new set of receipts is printed.
(c) The warehouse operator may use an electronic receipt system
if the provider of the electronic receipt system has been
approved by the department or by the United States Department of
Agriculture or any other federal agency that issues a license for
the operation of a public grain warehouse.
(d) The department may require a warehouse operator to provide a
bond to cover any loss resulting from unlawful use of a receipt.
The department shall determine the form and the amount of the
bond, but the amount may not exceed $5,000.
Renumbered from Sec. 14.020 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.054. ISSUANCE OF SCALE WEIGHT TICKET OR RECEIPT. (a)
On receiving grain, a warehouse operator shall issue to the
person delivering the grain a serially numbered scale weight
ticket in a form approved by the department.
(b) On application of a depositor, the warehouse operator shall
issue to the depositor a Texas grain warehouse receipt, which
must be:
(1) in a form prescribed by the department; and
(2) in conformity with Chapter 7, Business & Commerce Code.
(c) A Texas grain warehouse receipt issued under this subchapter
is subject to the provisions of Chapter 7, Business &
Commerce Code.
(d) A Texas grain warehouse receipt is a negotiable document of
title. A scale weight ticket is not a negotiable document of
title.
(e) Except as provided by Section 14.055 for duplicate receipts,
a warehouse operator may not issue two scale weight tickets or
two receipts bearing the same number during any calendar year.
(f) Unless previously canceled in accordance with the provisions
of Chapter 7, Business & Commerce Code, a Texas grain
warehouse receipt issued under this chapter expires 10 years
after the date of issuance.
Renumbered from Sec. 14.017 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.055. DUPLICATE RECEIPTS. (a) Except as otherwise
provided by this section, if a receipt issued under this chapter
is outstanding, another receipt covering all or part of the grain
covered by the initial receipt may not be issued by the warehouse
operator or any other person. If a receipt is lost, stolen, or
destroyed, the owner is entitled to a new receipt as a duplicate
or substitute for the missing receipt. The duplicate or
substitute receipt has the same legal effect as the original
receipt and must:
(1) state that it is in lieu of the original receipt; and
(2) bear the number and date of the original receipt.
(b) Before issuing a duplicate receipt, the warehouse operator
shall require from the owner an indemnity bond of double the
market value of the grain covered by the missing receipt. The
bond must be in a form and with a surety prescribed by the
department to fully protect all rights under the missing receipt.
(c) A warehouse operator may not obtain, purchase, or become a
surety on a bond for a lost, stolen, or destroyed receipt.
(d) A court may not order delivery of grain covered by a lost,
stolen, or destroyed receipt without requiring the bond provided
by this section.
Renumbered from Sec. 14.019 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.056. RECEIPT FOR GRAIN OWNED BY WAREHOUSE OPERATOR. A
warehouse operator may issue a receipt for grain that is owned by
the warehouse operator, in whole or part, and located in the
warehouse operator's warehouse. The negotiation, transfer, sale,
or pledge of that receipt may not be defeated because of its
ownership.
Renumbered from Sec. 14.018 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.057. RECORDS. (a) Every warehouse operator shall keep
in a safe place complete and correct records and accounts
pertaining to the public grain warehouse, including records and
accounts of:
(1) grain received and withdrawn from the warehouse;
(2) unissued receipts in the warehouse operator's possession;
(3) receipts and scale weight tickets issued by the warehouse
operator; and
(4) receipts returned to and canceled by the warehouse operator.
(b) The warehouse operator shall retain the records required by
this section for the period of time prescribed by the department.
The warehouse operator shall retain copies of receipts or other
documents evidencing ownership of grain or liability of a
warehouse operator as long as the documents are outstanding. If
the documents are canceled, the warehouse operator shall retain
the documents or receipts for a period of not less than two years
from the date of cancellation.
(c) The warehouse operator shall:
(1) clearly mark all canceled receipts "canceled" and mark on
the face of each receipt the date of the cancellation;
(2) keep records and accounts required by this section separate
from the records and accounts of other businesses;
(3) issue in numerical order all scale weight tickets and
receipts; and
(4) keep in numerical order copies of the scale weight tickets
and receipts issued by the warehouse operator.
(d) In records kept under this section, grain may be designated
as company-owned grain only if:
(1) the grain has been paid for and is wholly owned by the
warehouse operator; or
(2) the ownership of the grain has been transferred to the
warehouse operator under a written contract of purchase.
(e) The warehouse operator shall report to the department on
forms furnished by the department the following information on
scale weight tickets used in the warehouse operator's business:
(1) the number of scale weight tickets printed;
(2) the serial numbers of the scale weight tickets printed; and
(3) the printer of the scale weight tickets.
(f) The warehouse operator shall make any records required by
this section or department rule accessible and available for
inspection by the department at any reasonable time.
Renumbered from Sec. 14.022 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.058. POSTING OF STORAGE RATES OR TARIFFS. (a) A public
grain warehouse licensed under this chapter shall post a copy of
all storage rates and tariffs charged by the warehouse operator
at the main warehouse office and at each warehouse facility
operating under the license.
(b) The warehouse operator shall post any change to the posted
storage rates or tariffs not later than the third day before the
day on which the change is to take effect.
(c) Department inspectors shall check compliance with this
section during inspections of a public grain warehouse under this
chapter.
Renumbered from Sec. 14.036 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.059. INSPECTIONS; FEE. (a) On request by the
department, a warehouse operator shall report to the department
on the condition, operation, and business of each public grain
warehouse that the warehouse operator operates and all grain
stored in those warehouses.
(b) The department shall inspect each public grain warehouse at
least once annually and may make additional inspections as the
department considers necessary. A warehouse operator may request
that the department make additional inspections.
(c) The department shall collect from the warehouse operator
whose public grain warehouse is inspected an inspection fee for
an annual inspection or an inspection requested by the warehouse
operator, but may not collect an inspection fee for other
inspections unless the inspection is conducted:
(1) under the terms of an agreed or ordered suspension or
probation;
(2) in response to a complaint that the warehouse operator has
not complied with the duties and obligations provided for by this
chapter and the complaint is determined by the department to be
valid;
(3) as a follow-up inspection to:
(A) determine whether a shortage of grain discovered by the
department has been corrected;
(B) obtain records not immediately available at the location
designated as the recordkeeping location in department records or
to which access was refused during a previous inspection;
(C) ensure that recordkeeping discrepancies discovered during a
previous inspection have been corrected; or
(D) monitor a suspension or probation under this chapter; or
(4) to monitor termination of arrangements for storing,
shipping, or handling of grain under this chapter.
(d) The department by rule shall set the inspection fee.
Amended by Acts 1995, 74th Leg., ch. 419, Sec. 2.12, eff. Sept.
1, 1995. Renumbered from Sec. 14.014 and amended by Acts 2001,
77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
SUBCHAPTER G. REMEDIES AND CLAIMS
Sec. 14.061. WAREHOUSE RECEIPT AS PRIMA FACIE EVIDENCE. In an
action involving a warehouse operator that is brought under this
chapter, a warehouse receipt constitutes prima facie evidence of
the truth of the facts stated in the receipt.
Renumbered from Sec. 14.0261 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.062. INVALID RECEIPTS. Notwithstanding any other
provision of this code or the Business & Commerce Code, a
receipt for grain is void as to any person who receives the
receipt with knowledge that the grain purported to be covered by
the receipt was not, at the time the receipt was issued, actually
stored in the warehouse of the warehouse operator issuing the
receipt.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.063. TERMINATION OF STORAGE. (a) A warehouse operator
desiring to terminate the storage of grain in the warehouse
operator's warehouse, including grain that is abandoned or is
unclaimed prior to the sale of a warehouse, shall do so in
accordance with Sections 7.206 and 7.210, Business & Commerce
Code, except that the warehouse operator is not required to hold
the balance of the proceeds of a sale, but may transfer the
balance to the comptroller, who shall treat the money in the same
manner as an escheated bank account.
(b) A purchaser in good faith of grain sold under Section 7.210,
Business & Commerce Code, takes the grain free of any rights
of the holder of the receipt, but the receipt is evidence of
entitlement to the escheated funds deposited with the comptroller
under Subsection (a).
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 2.01, eff. Sept.
1, 1997. Renumbered from Sec. 14.023 and amended by Acts 2001,
77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.064. CERTAIN LOADOUT FEES PROHIBITED. (a) A warehouse
operator may not charge a fee for loading out grain if the
loadout was the result of the misconduct of the warehouse
operator.
(b) Misconduct under this section includes:
(1) violation of this chapter as established by final,
unappealable order of the commissioner;
(2) conviction of a crime, including a plea of nolo contendere,
described as an offense under this chapter; and
(3) conviction of a crime, including a plea of nolo contendere,
described as an offense under the Penal Code and involving any
type of fraud or theft related to the storing, shipping,
handling, sale, or purchase of grain or the sale or purchase of
grain handling, shipping, or storage equipment or warehouse
structures or other assets.
(c) A loadout fee collected during a period of suspension of a
warehouse operator's license by the department, after revocation
of a warehouse operator's license, or during a period in which
criminal charges are pending against a warehouse operator, shall
be placed in an escrow account by the warehouse operator until:
(1) the department's suspension is lifted;
(2) the prosecutor ceases to pursue criminal charges;
(3) the indictment or information is dismissed by a court; or
(4) the warehouse operator is acquitted.
(d) If misconduct is finally determined to have occurred as
provided by Subsection (b), the loadout fees placed in escrow
shall be returned to the person originally paying those fees. The
loadout fees placed in escrow shall be returned to the warehouse
operator if the warehouse operator is found not to have committed
misconduct by acquittal, by the dismissal of the criminal
charges, or by final order of the commissioner.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
Sec. 14.065. RECOVERY ON BOND; LIABILITY OF WAREHOUSE OPERATOR.
(a) If no action on the bond or cash, certificate of deposit, or
letter of credit deposited in lieu of a bond of a warehouse
operator is begun before the 31st day after the date of a written
demand to the department, a depositor has a right of action on
the bond or cash, certificate of deposit, or letter of credit
deposited in lieu of a bond for recovery of damages suffered by
the depositor as a result of the failure of the warehouse
operator to comply with any condition of the bond, or if cash, a
certificate of deposit, or a letter of credit is deposited in
lieu of a bond, failure to comply with any obligation of the
warehouse operator under this chapter that would have been
covered by a bond.
(b) Recovery on a bond shall be prorated if claims exceed
liability on a bond, but a depositor suing on a bond is not
required to join other depositors in a suit. The burden of
establishing proration is on the surety as a matter of defense or
is on the department as intervenor on behalf of other depositors.
(c) A warehouse operator is liable for damages for loss of or
injury to grain caused by the warehouse operator's failure to
exercise the care that a reasonably prudent person would exercise
in regard to the grain under similar circumstances, but, unless
otherwise agreed, a warehouse operator is not liable for damages
to grain that could not have been avoided through the exercise of
that care.
(d) A person who files an action on a bond under this section
must serve notice of the suit on the department in the same
manner and within the same period as for the defendant or surety
who issued the bond.
(e) On authentication by the department, the court shall accept
into evidence as a public record any report prepared by the
department under this chapter that describes potential bond
claims by other depositors, regardless of whether any of those
depositors are joined in the suit.
(f) A person is prohibited from filing a claim on an invalid
receipt.
(g) An action under this section must be brought not later than
the second anniversary of the date of expiration of the public
grain warehouse license in effect at the time the claim arose.
(h) The department by rule may set a limitations period for
filing claims with the department on a bond filed with the
department or cash, a certificate of deposit, or a letter of
credit deposited with the department in lieu of a bond.
Renumbered from Sec. 14.010 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.066. APPEAL OF DEPARTMENT ACTION BY WAREHOUSE OPERATOR.
(a) A department action or order affecting a warehouse operator
under this chapter, other than by rulemaking, assessment of an
administrative penalty, or imposition of a license sanction,
including a suspension under Section 14.083(c), is appealable in
accordance with this section.
(b) Not later than the 10th day after the date the department
takes an action or issues an order described by Subsection (a),
the warehouse operator may serve notice on the department to
appear in a district court of Travis County or the district court
of the county in which the public grain warehouse is located. The
court shall fix the time of the hearing not less than 3 days or
more than 20 days after the date of service of the notice.
(c) The burden is on the warehouse operator to show by a
preponderance of the evidence that the action taken or order
issued by the department was not authorized under this chapter
or, if authorized, was an abuse of the department's discretion.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1,
2001.
SUBCHAPTER H. OFFENSES
Sec. 14.071. GENERAL PENALTY. (a) A person commits an offense
if the person violates a provision of this chapter for which an
offense is not expressly provided.
(b) An offense under this section is a Class B misdemeanor.
Renumbered from Sec. 14.027 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.072. PENALTY FOR OPERATING WITHOUT A LICENSE. (a) A
person commits an offense if the person:
(1) transacts any public grain warehouse business without first
obtaining a license required by this chapter; or
(2) continues to transact public grain warehouse business after
a license has been revoked or suspended, or the license holder
has been placed on probation, except as permitted under Section
14.084.
(b) An offense under this section is a felony of the third
degree.
(c) A person commits a separate offense for each day business
prohibited by this section is carried on.
Renumbered from Sec. 14.028 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.073. PENALTY FOR FRAUD. (a) A person commits an
offense if the person:
(1) issues or aids in issuing a receipt or scale weight ticket
knowing that the grain covered by the receipt or scale weight
ticket has not been actually received at the grain warehouse;
(2) issues or aids in issuing a duplicate or additional
negotiable receipt for grain knowing that a former negotiable
receipt for the same grain or any part of the grain is
outstanding except as permitted by Section 14.055; or
(3) fraudulently and without proper authority represents,
forges, alters, counterfeits, or simulates any license, scale
weight ticket, or receipt provided for by this chapter.
(b) An offense under this section is a felony of the second
degree.
Renumbered from Sec. 14.029 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.074. PENALTY FOR UNLAWFUL DELIVERY. (a) A person
commits an offense if the person:
(1) delivers grain out of a public grain warehouse knowing that
a negotiable receipt for the grain is outstanding and without
possessing that receipt; or
(2) delivers grain out of a public grain warehouse:
(A) knowing that a nonnegotiable receipt or scale weight ticket
is outstanding;
(B) without the prior approval of the person lawfully entitled
to delivery; and
(C) without the delivery being shown on the appropriate records
of the warehouse operator.
(b) It is an affirmative defense to prosecution under this
section that the person's action is:
(1) a sale or other disposition of grain in lawful enforcement
of a warehouse operator's lien;
(2) a warehouse operator's lawful termination of a storing,
shipping, or handling agreement;
(3) a delivery to the person lawfully entitled to delivery;
(4) a delivery authorized by prior approval of the person
lawfully entitled to delivery and the delivery is shown on the
appropriate records of the warehouse operator;
(5) necessary to prevent destruction of the grain;
(6) taken under the order of a state or federal court; or
(7) permitted by a rule of the department necessary to carry out
this chapter.
(c) An offense under this section is a felony of the second
degree.
Renumbered from Sec. 14.030 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.075. PENALTY FOR FRAUDULENTLY ISSUING A SCALE WEIGHT
TICKET OR RECEIPT. (a) A person commits an offense if the
person fraudulently issues or aids in fraudulently issuing a
receipt or scale weight ticket knowing that it contains a false
statement.
(b) An offense under this section is a felony of the second
degree.
Renumbered from Sec. 14.031 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.076. PENALTY FOR CHANGING A RECEIPT OR SCALE WEIGHT
TICKET AFTER ISSUANCE. (a) A person commits an offense if the
person changes a receipt or scale weight ticket after its
issuance.
(b) It is a defense to prosecution under this section that the
change on the receipt or scale weight ticket is a notation by the
warehouse operator for partial delivery or corrections made by
the warehouse operator to reflect accuracy of accounts.
(c) An offense under this section is a felony of the second
degree.
Renumbered from Sec. 14.032 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.077. PENALTY FOR DEPOSITING GRAIN WITHOUT TITLE. (a) A
person commits an offense if the person:
(1) deposits grain without having title to the grain or deposits
grain on which there is a lien or mortgage;
(2) receives for the grain a negotiable receipt; and
(3) negotiates the receipt for value with intent to deceive and
without disclosing the person's lack of title or the existence of
a lien or mortgage on the grain.
(b) An offense under this section is a felony of the second
degree.
Renumbered from Sec. 14.033 and amended by Acts 2001, 77th Leg.,
ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Sec. 14.078. PENALTY FOR STEALING GRAIN OR