By Swinford H.B. No. 2501
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of warehouses and certain cotton buyers.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 14.003, Agriculture Code, is amended by
1-5 adding Subsection (d) to read as follows:
1-6 (d) The following information prepared by the department in
1-7 the course of its regulatory authority under this subchapter or
1-8 required to be submitted to the department in accordance with the
1-9 department's administration of this subchapter is confidential and
1-10 not subject to public disclosure:
1-11 (1) inspection reports containing information
1-12 regarding grain inventory; and
1-13 (2) financial information provided to the department
1-14 to establish net worth for purposes of licensure.
1-15 SECTION 2. Subchapter A, Chapter 14, Agriculture Code, is
1-16 amended by adding Section 14.0091 to read as follows:
1-17 Sec. 14.0091. OBLIGATIONS OF WAREHOUSEMAN. The obligations
1-18 of a warehouseman include the obligation to:
1-19 (1) deliver a commodity to a person holding a receipt
1-20 for a commodity stored in the warehouse; and
1-21 (2) maintain the quantity and quality of a commodity
1-22 as evidenced by and indicated on a warehouse receipt.
1-23 SECTION 3. The heading of Section 14.010, Agriculture Code,
1-24 is amended to read as follows:
2-1 Sec. 14.010. RECOVERY ON BOND; LIABILITY OF WAREHOUSEMAN.
2-2 SECTION 4. Section 14.010, Agriculture Code, is amended by
2-3 adding Subsection (c) to read as follows:
2-4 (c) A warehouseman is liable for damages for loss of or
2-5 injury to a commodity caused by the warehouseman's failure to
2-6 exercise the care that a reasonably prudent person would exercise
2-7 in regard to the commodity under similar circumstances, but, unless
2-8 otherwise agreed, a warehouseman is not liable for damages to a
2-9 commodity that could not have been avoided through the exercise of
2-10 that care.
2-11 SECTION 5. Section 14.017, Agriculture Code, is amended by
2-12 adding Subsection (f) to read as follows:
2-13 (f) Unless previously canceled in accordance with the
2-14 provisions of Chapter 7, Business & Commerce Code, a Texas
2-15 commodity warehouse receipt issued under this chapter expires 10
2-16 years after the date of issuance.
2-17 SECTION 6. Subchapter A, Chapter 14, Agriculture Code, is
2-18 amended by adding Section 14.0261 to read as follows:
2-19 Sec. 14.0261. WAREHOUSE RECEIPT AS PRIMA FACIE EVIDENCE. In
2-20 an action involving a warehouseman that is brought under this
2-21 subchapter, a warehouse receipt constitutes prima facie evidence of
2-22 the truth of the facts stated in the receipt.
2-23 SECTION 7. Subchapter A, Chapter 14, Agriculture Code, is
2-24 amended by adding Section 14.0262 to read as follows:
2-25 Sec. 14.0262. RECOVERY OF COURT COSTS. (a) On prevailing
2-26 in an action commenced by the department through the attorney
2-27 general under this subchapter, the department and the attorney
3-1 general are each entitled to recover:
3-2 (1) investigation costs and fees;
3-3 (2) reasonable attorney's fees;
3-4 (3) court costs; and
3-5 (4) other costs relating to the action, including the
3-6 cost of depositions and other forms of discovery and copying
3-7 charges.
3-8 (b) The costs recoverable under this section are in addition
3-9 to other relief available to the department or attorney general.
3-10 SECTION 8. Subchapter A, Chapter 14, Agriculture Code, is
3-11 amended by adding Section 14.036 to read as follows:
3-12 Sec. 14.036. POSTING OF STORAGE RATES OR TARIFFS. (a) A
3-13 public commodity warehouse licensed under this subchapter shall
3-14 post a copy of the storage rates and tariffs charged by the
3-15 warehouse at the main warehouse office and at each warehouse
3-16 operating under the license. The public warehouse shall post any
3-17 change to the posted rates or tariffs not later than the 14th day
3-18 before the day on which the change is to take effect.
3-19 (b) Department inspectors shall check compliance with this
3-20 section during inspections of a public commodity warehouse under
3-21 this subchapter.
3-22 SECTION 9. Title 132A, Revised Statutes, is amended by
3-23 adding Article 9103 to read as follows:
3-24 Art. 9103. NONAGRICULTURAL PUBLIC WAREHOUSES
3-25 Sec. 1. DEFINITIONS. In this article:
3-26 (1) "Department" means the Texas Department of
3-27 Licensing and Regulation.
4-1 (2) "Public warehouse" means a house, building, or
4-2 room in which personal property that is not an agricultural
4-3 commodity is stored and protected by a public warehouseman from
4-4 damage by the elements. "Public warehouse" does not include a
4-5 self-service storage facility as defined in Chapter 59, Property
4-6 Code.
4-7 (3) "Public warehouseman" means a person who stores
4-8 personal property that is not an agricultural commodity for hire.
4-9 (4) "Agricultural commodity" means wheat, grain
4-10 sorghum, corn, oats, barley, rye, soybeans, cotton, rice, peas,
4-11 beans, or any other agricultural product customarily stored in a
4-12 public warehouse.
4-13 Sec. 2. WAREHOUSE REGULATION. A public warehouse operating
4-14 under this article is under the supervision of the department.
4-15 Sec. 3. CERTIFICATE TO TRANSACT BUSINESS. No person may
4-16 operate a public warehouse without first obtaining a certificate to
4-17 transact business as a public warehouseman from the department.
4-18 Sec. 4. APPLICATION FOR CERTIFICATE. (a) To obtain a
4-19 certificate to transact business under this article, a person must
4-20 apply in writing to the department on a form prescribed by the
4-21 department. The application must state the name and location of
4-22 the public warehouse and:
4-23 (1) the name of each person with an interest as owner
4-24 or principal in the public warehouse; or
4-25 (2) the name of the president, secretary, and
4-26 treasurer of the corporation if a corporation owns or manages the
4-27 public warehouse.
5-1 (b) The department shall issue the certificate and retain
5-2 for department records a copy of the application.
5-3 Sec. 5. BOND. (a) A person receiving a certificate to
5-4 transact business shall file a bond with the department.
5-5 (b) The bond must be:
5-6 (1) payable to the state;
5-7 (2) of good and sufficient surety;
5-8 (3) conditioned on faithful performance of the
5-9 applicant's duty as a public warehouseman; and
5-10 (4) in the amount of $5,000.
5-11 (c) A bond is subject to approval by the department.
5-12 Sec. 6. RECEIPTS. (a) The owner or depositor of property
5-13 stored in a public warehouse may request from the public
5-14 warehouseman a receipt for the property stored in the warehouse.
5-15 (b) The receipt shall be signed by the public warehouseman
5-16 or the warehouseman's agent and state:
5-17 (1) that the receipt is issued by a public warehouse;
5-18 (2) the date of its issuance;
5-19 (3) the name and location of the public warehouse in
5-20 which the property is stored; and
5-21 (4) the description, quantity, number, and marks of
5-22 the property stored.
5-23 (c) The public warehouseman shall number receipts
5-24 consecutively in the order of their issue and shall keep a correct
5-25 record of receipts issued that is available for public inspection
5-26 at reasonable hours.
5-27 Sec. 7. DUPLICATE RECEIPTS. (a) A public warehouseman may
6-1 not issue a duplicate receipt or two receipts bearing the same
6-2 number from the same public warehouse during the same calendar
6-3 year, except as provided by Subsection (b) of this section.
6-4 (b) If a receipt is lost or destroyed, the public
6-5 warehouseman shall issue a new receipt that:
6-6 (1) bears the same date and number as the original
6-7 receipt;
6-8 (2) is plainly marked "duplicate" on its face; and
6-9 (3) is secured with a deposit:
6-10 (A) made by the person requesting the duplicate
6-11 receipt; and
6-12 (B) acceptable to the warehouseman to protect a
6-13 person who may hold the original receipt in good faith and for
6-14 valuable consideration.
6-15 Sec. 8. RECEIPT TO BE ISSUED ONLY ON DELIVERY. A public
6-16 warehouseman may not issue a receipt until the goods secured by the
6-17 receipt are actually delivered to the public warehouse and are
6-18 under the control of the public warehouseman issuing the receipt.
6-19 Sec. 9. DELIVERY. (a) A public warehouseman shall
6-20 immediately deliver property held in the warehouse on:
6-21 (1) presentation of a properly endorsed receipt issued
6-22 by the warehouseman to represent the property; and
6-23 (2) payment by the holder of the receipt of all proper
6-24 warehouse charges on property represented by the receipt.
6-25 (b) Unless a receipt has been lost or canceled, a public
6-26 warehouseman may not deliver property represented by a receipt
6-27 until the receipt is surrendered and canceled.
7-1 (c) On delivery of goods represented by a receipt, the
7-2 public warehouseman shall cancel the receipt by writing "canceled"
7-3 in ink on the receipt and placing the warehouseman's name on the
7-4 face of the receipt. A canceled receipt is void and may not be
7-5 circulated.
7-6 (d) A public warehouseman who fails to strictly comply with
7-7 this section is liable to the legal holder of the receipt for the
7-8 full value at the time of the default of the property represented
7-9 by the receipt.
7-10 Sec. 10. EXCEPTIONS. (a) This article does not apply to
7-11 private warehouses or the issuance of receipts by the owners or
7-12 managers of private warehouses.
7-13 (b) This article does not prohibit a public warehouseman
7-14 from issuing the same type of receipt issued by a private
7-15 warehouse, provided that the face of the receipt is plainly
7-16 marked: "Not a public warehouse receipt."
7-17 Sec. 11. STORAGE CHARGES. (a) The department may set
7-18 minimum storage charges for a public warehouse operating under this
7-19 article.
7-20 (b) The department is not required to set equal charges at
7-21 all places or all times and may take into consideration the local
7-22 conditions and volume of business of each public warehouse.
7-23 Sec. 12. REVOCATION OF CERTIFICATE. After a hearing the
7-24 commissioner may deny, suspend, or revoke a certificate to transact
7-25 business and may impose administrative sanctions and penalties and
7-26 seek injunctive relief and civil penalties against a public
7-27 warehouseman as provided by Article 9100, Revised Statutes.
8-1 SECTION 10. Chapter 113, Agriculture Code, is repealed.
8-2 SECTION 11. This Act takes effect September 1, 1993.
8-3 SECTION 12. The importance of this legislation and the
8-4 crowded condition of the calendars in both houses create an
8-5 emergency and an imperative public necessity that the
8-6 constitutional rule requiring bills to be read on three several
8-7 days in each house be suspended, and this rule is hereby suspended.