By: Swinford H.B. No. 2501
73R5070 MJW-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of warehouses; providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The heading of Subchapter A, Chapter 14,
1-5 Agriculture Code, is amended to read as follows:
1-6 SUBCHAPTER A. PUBLIC COMMODITY <GRAIN> WAREHOUSES
1-7 SECTION 2. Section 14.001, Agriculture Code, is amended to
1-8 read as follows:
1-9 Sec. 14.001. Definitions. In this subchapter:
1-10 (1) "Commodity" means grain, cotton, rice, produce, or
1-11 another agricultural product customarily stored in a public
1-12 warehouse as determined by department rule.
1-13 (2) "Depositor" means a person who:
1-14 (A) deposits a commodity <grain> in a warehouse
1-15 for storing, handling, or shipping;
1-16 (B) is the owner or legal holder of an
1-17 outstanding receipt for a commodity <grain>; or
1-18 (C) is lawfully entitled to possession of a
1-19 commodity <the grain>.
1-20 (3) <(2)> "Grain" means wheat, grain sorghum, corn,
1-21 oats, barley, rye, soybeans, or any other grain, peas, or beans for
1-22 which federal grain standards are established.
1-23 (4) <(3)> "Open storage commodity <grain>" means a
1-24 commodity <grain> that:
2-1 (A) is received for storage by a public <grain>
2-2 warehouse;
2-3 (B) is not covered by a negotiable warehouse
2-4 receipt; and
2-5 (C) is not owned by the warehouse in which it is
2-6 stored.
2-7 (5) <(4)> "Public commodity <grain> warehouse" means a
2-8 building, bin, or similar structure used for:
2-9 (A) the receiving, storing, shipping, or
2-10 handling of a commodity <grain> for hire; or
2-11 (B) the purchasing and selling of a commodity
2-12 <grain>, including a commodity <grain> on which payment is
2-13 deferred.
2-14 (6) <(5)> "Receipt" means a negotiable warehouse
2-15 receipt issued by a warehouseman licensed under this subchapter.
2-16 (7) <(6)> "License" includes a renewal of or an
2-17 amendment to a license.
2-18 (8) <(7)> "Scale weight ticket" means a load slip
2-19 other than a receipt given to a depositor by a warehouseman
2-20 licensed under this subchapter on initial delivery of a commodity
2-21 <the grain> to the warehouse.
2-22 (9) <(8)> "Receipted commodity <grain>" means a
2-23 commodity <grain> that is stored in a public commodity <grain>
2-24 warehouse and for which a Texas commodity <grain> warehouse receipt
2-25 has been issued and has not been canceled.
2-26 (10) <(9)> "Storage commodity <grain>" means a
2-27 commodity <grain> that:
3-1 (A) is received in a public commodity <grain>
3-2 warehouse located in this state; and
3-3 (B) is not purchased by the lessee, owner, or
3-4 manager of the warehouse receiving the commodity <grain>.
3-5 (11) <(10)> "Warehouseman" means a person engaged in
3-6 the business of operating a public commodity <grain> warehouse.
3-7 SECTION 3. Section 14.002, Agriculture Code, is amended to
3-8 read as follows:
3-9 Sec. 14.002. Limitation of Subchapter. This subchapter does
3-10 not apply to:
3-11 (1) a warehouse covered by a license issued under the
3-12 United States Warehouse Act;
3-13 (2) an individual producer-owner who does not receive
3-14 from others a commodity <grain> for storage or handling for hire;
3-15 (3) a person whose business is manufacturing a
3-16 commodity <grain> or selling a manufactured commodity <grain> at
3-17 retail, unless the person also satisfies the definition of a
3-18 warehouseman; or
3-19 (4) a person who receives a commodity <grain> with the
3-20 intent of using the commodity <grain> for planting seed or for
3-21 feeding livestock on the premises where the commodity <grain> is
3-22 received, unless the person requests in writing to the department
3-23 to be licensed.
3-24 SECTION 4. Section 14.003(a), Agriculture Code, is amended
3-25 to read as follows:
3-26 (a) The department shall administer this subchapter and may:
3-27 (1) investigate the storing, shipping, and handling of
4-1 commodities <grain> and complaints relating to these activities
4-2 through the inspection of:
4-3 (A) any public commodity <grain> warehouse;
4-4 (B) the commodity <grain> stored in any
4-5 warehouse; or
4-6 (C) all property and records pertaining to a
4-7 warehouse;
4-8 (2) determine whether a warehouse for which a license
4-9 has been issued or applied for is suitable for properly storing,
4-10 shipping, or handling a commodity <grain> that is stored in or
4-11 expected to be stored in the warehouse;
4-12 (3) include field seed within the definition given to
4-13 "grain" by Section 14.001 of this code;
4-14 (4) require reports it determines are necessary in the
4-15 administration of this subchapter;
4-16 (5) require a warehouseman to terminate storing,
4-17 shipping, and handling agreements on revocation of a license;
4-18 (6) prescribe forms, including the form of receipts,
4-19 bonds, or applications for licenses; and
4-20 (7) adopt rules necessary to carry out the provisions
4-21 of this subchapter.
4-22 SECTION 5. Section 14.004, Agriculture Code, is amended to
4-23 read as follows:
4-24 Sec. 14.004. License Required. A person may not operate a
4-25 public commodity <grain> warehouse without first obtaining from the
4-26 department a license in the person's name covering the warehouse.
4-27 SECTION 6. Sections 14.005(a) and (c), Agriculture Code, are
5-1 amended to read as follows:
5-2 (a) The department may issue, renew, or amend a license
5-3 following a determination that:
5-4 (1) the applicant has filed an acceptable bond and
5-5 possesses sufficient insurance;
5-6 (2) the warehouse is suitable for storage of the
5-7 commodity <grain>; and
5-8 (3) the applicant has complied with this subchapter
5-9 and rules adopted under this subchapter.
5-10 (c) If an applicant for a license previously operated a
5-11 public commodity <grain> warehouse in this state or another state
5-12 and that warehouse ceased to operate while the applicant was the
5-13 operator, the applicant must submit with the application evidence
5-14 acceptable to the department that all debts from the previous
5-15 operation evidenced by receipts have been satisfied. The
5-16 department may not issue a license to an applicant who the
5-17 department determines has not satisfied all such debts from a
5-18 previous operation.
5-19 SECTION 7. Section 14.006, Agriculture Code, is amended to
5-20 read as follows:
5-21 Sec. 14.006. Multiple Warehouses Operated Under a Single
5-22 License. (a) For the purpose of granting a license, the
5-23 department may consider as one unit all warehouses in which the
5-24 same type of commodity is stored that are owned or controlled by
5-25 the warehouseman and that are located in close proximity on the
5-26 same general location.
5-27 (b) All public commodity <grain> warehouses operating under
6-1 a single license shall be treated as a single warehouse for the
6-2 purposes of this subchapter, including the issuance of receipts and
6-3 the receipt and shipment of a commodity <grain>. However, the
6-4 department may approve an application requesting that any part of a
6-5 public commodity warehouse be reserved and designated "not for
6-6 public use."
6-7 SECTION 8. Section 14.008, Agriculture Code, is amended to
6-8 read as follows:
6-9 Sec. 14.008. Posting of License. Each warehouseman shall
6-10 immediately on receipt of a license post it in a conspicuous place
6-11 in the office of the public commodity <grain> warehouse.
6-12 SECTION 9. Sections 14.009(c), (d), (e), and (i),
6-13 Agriculture Code, are amended to read as follows:
6-14 (c) The bond must be conditioned on faithful performance of:
6-15 (1) each obligation of a warehouseman as to receipted
6-16 commodities <grain and open storage grain> under this subchapter
6-17 and rules adopted under this subchapter, from the effective date of
6-18 the bond until the license is revoked or the bond is canceled,
6-19 whichever occurs first; and
6-20 (2) each obligation of a warehouseman under any
6-21 contract with a depositor that exists on the effective date of the
6-22 bond or is assumed after the effective date of the bond and before
6-23 the license is revoked or the bond is canceled, whichever occurs
6-24 first and whether or not the warehouse remains licensed.
6-25 (d) The bond must be in an amount of not less than $15,000
6-26 nor more than $500,000, based on a rate determined by department
6-27 rule for a commodity or class of commodities <the following rate:>
7-1 <(1) seven cents per bushel on the first million
7-2 bushels of storage capacity;>
7-3 <(2) five cents per bushel on the second million
7-4 bushels of storage capacity; and>
7-5 <(3) three cents per bushel on all bushels of storage
7-6 capacity above two million bushels>.
7-7 (e) The department may require an applicant to file a
7-8 deficiency bond under circumstances, and in an amount, determined
7-9 by department rule <If the actual net worth of an applicant equals
7-10 less than 25 cents per bushel of storage capacity, the applicant
7-11 shall file a deficiency bond in an amount equal to the difference
7-12 between the actual net worth and an amount determined by
7-13 multiplying 25 cents times each bushel of storage capacity in the
7-14 applicant's warehouse>. A deficiency bond is in addition to the
7-15 bond required of an applicant by this section, and the maximum
7-16 amount of a bond provided by Subsection (d) of this section does
7-17 not apply.
7-18 (i) Subject to the approval of the department, a
7-19 warehouseman may deposit the following with the department in lieu
7-20 of a bond required by this section:
7-21 (1) cash;
7-22 (2) an irrevocable letter of credit, payable to the
7-23 State of Texas;
7-24 (3) a certificate of deposit from a federally insured
7-25 bank or savings and loan institution authorized to do business in
7-26 this state, assigned to the State of Texas; or
7-27 (4) negotiable securities approved by the department
8-1 as providing the same protection as a surety bond for the <grain>
8-2 depositor.
8-3 SECTION 10. Subchapter A, Chapter 14, Agriculture Code, is
8-4 amended by adding Section 14.0091 to read as follows:
8-5 Sec. 14.0091. OBLIGATIONS OF WAREHOUSEMAN. (a) The
8-6 obligations of a warehouseman include the obligation to:
8-7 (1) deliver a commodity to a person holding a receipt
8-8 for a commodity stored in the warehouse; and
8-9 (2) maintain the quantity and quality of a commodity
8-10 as evidenced by and indicated on a warehouse receipt.
8-11 SECTION 11. The heading of Section 14.010, Agriculture Code,
8-12 is amended to read as follows:
8-13 Sec. 14.010. RECOVERY ON BOND; LIABILITY OF WAREHOUSEMAN.
8-14 SECTION 12. Section 14.010, Agriculture Code, is amended by
8-15 adding Subsection (c) to read as follows:
8-16 (c) A warehouseman is liable for damages for loss of or
8-17 injury to a commodity caused by the warehouseman's failure to
8-18 exercise the care that a reasonably prudent person would exercise
8-19 in regard to the commodity under similar circumstances, but, unless
8-20 otherwise agreed, a warehouseman is not liable for damages to a
8-21 commodity that could not have been avoided through the exercise of
8-22 that care.
8-23 SECTION 13. Section 14.011, Agriculture Code, is amended to
8-24 read as follows:
8-25 Sec. 14.011. Casualty Insurance. (a) Except as provided by
8-26 Subsection (c) of this section, an applicant for a license must
8-27 file or have on file with the department a certificate of insurance
9-1 evidencing that:
9-2 (1) the applicant has an effective policy of insurance
9-3 issued by an insurance company authorized to do business in this
9-4 state or, with the approval of the department, by a surplus lines
9-5 insurer that meets the requirements of Article 1.14-2, Insurance
9-6 Code, and rules adopted by the State Board of Insurance under that
9-7 article; and
9-8 (2) the policy insures, in the name of the applicant,
9-9 all commodities <grain> that are <is> or may be in the public
9-10 commodity <grain> warehouse for their <its> full market value
9-11 against loss by fire, internal explosion, lightning, windstorm,
9-12 cyclone, or tornado.
9-13 (b) If a fire, an internal explosion, lightning, a
9-14 windstorm, a cyclone, or a tornado destroys or damages a commodity
9-15 <grain> in a public commodity <grain> warehouse, the warehouseman
9-16 shall, on demand by the depositor and presentation of a receipt or
9-17 other evidence of ownership, make settlement with the depositor <of
9-18 the grain>. The amount of the settlement shall be the average
9-19 price paid for a commodity <grain> of the same type, grade, and
9-20 quality on the date of the loss at the location of the warehouse,
9-21 minus warehouseman's charges and advances. If a settlement is not
9-22 made before the 31st day following the date of demand, the
9-23 depositor is entitled to seek recovery from the insurance company.
9-24 (c) An applicant is not required to file a certificate of
9-25 insurance if the applicant certifies that all commodities <grain>
9-26 within the warehouse are <is> owned by the applicant free of any
9-27 lien.
10-1 SECTION 14. Section 14.012(b), Agriculture Code, is amended
10-2 to read as follows:
10-3 (b) If a license has been suspended or revoked or has
10-4 expired, the department may require a bond from the warehouseman to
10-5 protect depositors <of grain> for as long as any receipts remain
10-6 outstanding.
10-7 SECTION 15. Section 14.014, Agriculture Code, is amended to
10-8 read as follows:
10-9 Sec. 14.014. Inspections; Fee. (a) On request by the
10-10 department, a warehouseman shall report to the department on the
10-11 condition, conduct, operation, and business of each public
10-12 commodity <grain> warehouse that the warehouseman operates and all
10-13 commodities <grain> stored in those warehouses.
10-14 (b) A warehouseman shall permit the department to enter and
10-15 inspect each public commodity <grain> warehouse, its contents, and
10-16 all records related to the commodities <grain> stored in the
10-17 warehouse. The warehouseman shall render to the department any
10-18 assistance necessary for an inspection under this section.
10-19 (c) The department shall inspect each public commodity
10-20 <grain> warehouse at least once annually and may make additional
10-21 inspections as the department considers necessary. A warehouseman
10-22 may request that the department make additional inspections.
10-23 (d) The department shall collect from the warehouseman whose
10-24 public commodity <grain> warehouse is inspected an inspection fee
10-25 for an annual inspection or an inspection requested by the
10-26 warehouseman, but may not collect an inspection fee for other
10-27 inspections. The inspection fee shall be set by department rule
11-1 <is $4 for each 10,000 bushels or fraction of 10,000 bushels of
11-2 licensed storage capacity of the warehouse inspected or $100,
11-3 whichever is greater>.
11-4 SECTION 16. Section 14.016, Agriculture Code, is amended to
11-5 read as follows:
11-6 Sec. 14.016. Operation After Revocation or Suspension of a
11-7 License. (a) If a license is revoked, the warehouseman shall
11-8 terminate, in a manner prescribed by the department, all
11-9 arrangements concerning storing, shipping, or handling the
11-10 commodities <grain> in the warehouse.
11-11 (b) During a suspension of a license the warehouseman may,
11-12 under the direction and supervision of the department, operate the
11-13 warehouse and deliver a commodity <grain> previously received, but
11-14 may not receive a commodity <grain> for storing, shipping, or
11-15 handling.
11-16 SECTION 17. Sections 14.017(a), (b), (c), and (d),
11-17 Agriculture Code, are amended to read as follows:
11-18 (a) On receiving a commodity <grain>, a warehouseman shall
11-19 issue to the person delivering the commodity <grain> a serially
11-20 numbered scale weight ticket in a form approved by the department.
11-21 (b) On application of a depositor, the warehouseman shall
11-22 issue to the depositor a Texas commodity <grain> warehouse receipt,
11-23 which must be:
11-24 (1) in a form prescribed by the department; and
11-25 (2) in conformity with Chapter 7, Business & Commerce
11-26 Code.
11-27 (c) A Texas commodity <grain> warehouse receipt issued under
12-1 this subchapter is subject to the provisions of Chapter 7, Business
12-2 & Commerce Code.
12-3 (d) A Texas commodity <grain> warehouse receipt is a
12-4 negotiable document of title. A scale weight ticket is not a
12-5 negotiable document of title.
12-6 SECTION 18. Section 14.018, Agriculture Code, is amended to
12-7 read as follows:
12-8 Sec. 14.018. RECEIPT FOR COMMODITY <GRAIN> OWNED BY
12-9 WAREHOUSE OWNER. A warehouseman may issue a receipt for a
12-10 commodity <grain> that is owned by the warehouseman, in whole or
12-11 part, and located in the warehouseman's warehouse. The
12-12 negotiation, transfer, sale, or pledge of that receipt may not be
12-13 defeated because of its ownership.
12-14 SECTION 19. Sections 14.019(a) and (b), Agriculture Code,
12-15 are amended to read as follows:
12-16 (a) Except as otherwise provided by this subsection, if a
12-17 receipt issued under this subchapter is outstanding, another
12-18 receipt covering all or part of the commodity <grain> covered by
12-19 the initial receipt may not be issued by the warehouseman or any
12-20 other person. If a receipt is lost, stolen, or destroyed, the
12-21 owner is entitled to a new receipt as a duplicate or substitute for
12-22 the missing receipt. The duplicate or substitute receipt has the
12-23 same legal effect as the original receipt and must:
12-24 (1) state that it is in lieu of the original receipt;
12-25 and
12-26 (2) bear the number and date of the original receipt.
12-27 (b) Before issuing a duplicate receipt, the warehouseman
13-1 shall require an indemnity bond of double the market value of the
13-2 commodity <grain> covered by the missing receipt. The bond must be
13-3 in a form and with a surety prescribed by the department to fully
13-4 protect all rights under the missing receipt.
13-5 SECTION 20. Section 14.021, Agriculture Code, is amended to
13-6 read as follows:
13-7 Sec. 14.021. Obligation to Deliver. The obligation of a
13-8 warehouseman to deliver a commodity <grain> to a person holding a
13-9 receipt for the commodity <grain> stored in the public commodity
13-10 <grain> warehouse is controlled by Section 7.403, Business &
13-11 Commerce Code.
13-12 SECTION 21. Sections 14.022(a), (b), and (d), Agriculture
13-13 Code, are amended to read as follows:
13-14 (a) Every warehouseman shall keep in a safe place complete
13-15 and correct records and accounts pertaining to the public commodity
13-16 <grain> warehouse, including records and accounts of:
13-17 (1) commodities <grain> received and withdrawn from
13-18 the warehouse;
13-19 (2) unissued receipts in the warehouseman's
13-20 possession;
13-21 (3) receipts and scale weight tickets issued by the
13-22 warehouseman; and
13-23 (4) receipts returned to and canceled by the
13-24 warehouseman.
13-25 (b) The warehouseman shall retain the records required by
13-26 this section for the period of time prescribed by the department.
13-27 The warehouseman shall retain copies of receipts or other documents
14-1 evidencing ownership of a commodity <grain> or liability of a
14-2 warehouseman as long as the documents are outstanding. If the
14-3 documents are canceled, the warehouseman shall retain the documents
14-4 or receipts for a period of not less than two years from the date
14-5 of cancellation.
14-6 (d) In records kept under this section, a commodity <grain>
14-7 may be designated as a company-owned commodity <grain> only if:
14-8 (1) the commodity <grain> has been paid for and is
14-9 wholly owned by the warehouse; or
14-10 (2) the ownership of the commodity <grain> has been
14-11 transferred to the warehouse under a written contract of purchase.
14-12 SECTION 22. Section 14.023, Agriculture Code, is amended to
14-13 read as follows:
14-14 Sec. 14.023. Termination of Storage. (a) A warehouseman
14-15 desiring to terminate the storage of a commodity <grain> in the
14-16 warehouseman's warehouse, including a commodity <grain> that is
14-17 abandoned or is unclaimed prior to the sale of a warehouse, shall
14-18 do so in accordance with Sections 7.206 and 7.210, Business &
14-19 Commerce Code, except that the warehouseman is not required to hold
14-20 the balance of the proceeds of a sale, but may transfer the balance
14-21 to the state treasurer, who shall treat the money in the same
14-22 manner as an escheated bank account.
14-23 (b) A purchaser in good faith of a commodity <grain> sold
14-24 under Section 7.210, Business & Commerce Code, takes the commodity
14-25 <grain> free of any rights of the holder of the receipt, but the
14-26 receipt is evidence of entitlement to the escheated funds
14-27 deposited with the state treasurer under Subsection (a) of this
15-1 section.
15-2 SECTION 23. Sections 14.024(a), (b), (c), (d), and (f),
15-3 Agriculture Code, are amended to read as follows:
15-4 (a) If the department determines that a warehouseman does
15-5 not possess a sufficient amount of a particular commodity <grain>
15-6 to cover outstanding receipts and outstanding scale weight tickets
15-7 issued or assumed by the warehouseman, or if a warehouseman refuses
15-8 to submit records or property for lawful inspection, the department
15-9 may give notice to the warehouseman requiring the warehouseman to:
15-10 (1) cover a shortage;
15-11 (2) give additional bond;
15-12 (3) submit to an inspection considered necessary by
15-13 the department; or
15-14 (4) comply with any combination of the requirements
15-15 authorized by this subsection.
15-16 (b) A warehouseman shall comply with the requirements of a
15-17 notice issued under Subsection (a) of this section within 24 hours
15-18 of notification by the department or within a longer time allowed
15-19 by the department. If the warehouseman fails to comply, the
15-20 department may petition the district court for the county where the
15-21 warehouseman's principal place of business is located, as shown by
15-22 the license application, for a court order authorizing the
15-23 department to take possession of:
15-24 (1) all or a portion of a commodity <the grain>
15-25 located in the public commodity <grain> warehouse or warehouses;
15-26 and
15-27 (2) all relevant records and property of the
16-1 warehouseman.
16-2 (c) If the department takes possession of a commodity
16-3 <grain> under Subsection (b) of this section, the department shall
16-4 give written notice of its action to the surety on the bond of the
16-5 warehouseman and may notify the holders of all receipts and scale
16-6 weight tickets issued for the commodity <grain>, as shown by the
16-7 warehouseman's records, to present their receipts or scale weight
16-8 tickets for inspection or account for the absence of the receipts
16-9 or scale weight tickets. The department may then audit and
16-10 investigate the affairs of the public commodity <grain> warehouse,
16-11 especially with respect to the commodity <grain> of which there is
16-12 an apparent shortage. The purpose of the audit and investigation
16-13 is to determine the amount of the shortage, and if practicable, to
16-14 compute the shortage as to each depositor of that commodity, as
16-15 shown by the warehouseman's records. The department shall notify
16-16 the warehouseman and the surety on the warehouseman's bond of the
16-17 approximate amount of the shortage. The department shall notify
16-18 each depositor affected by the shortage by sending notice to the
16-19 depositor's last known address, as shown by the warehouseman's
16-20 records.
16-21 (d) The department shall retain possession of a commodity
16-22 <grain> obtained under this section until:
16-23 (1) the warehouseman or surety on the bond satisfies
16-24 the claims of all depositors; or
16-25 (2) the court orders the department to surrender
16-26 possession.
16-27 (f) At any time before the 11th day following the day on
17-1 which the department takes possession of a commodity <grain> under
17-2 this section, the warehouseman may serve notice on the department
17-3 to appear in the district court of the county in which the public
17-4 commodity <grain> warehouse is located to show cause why possession
17-5 should not be restored to the warehouseman. The court shall fix
17-6 the time of the hearing not less than 5 nor more than 15 days from
17-7 the date of service of the notice.
17-8 SECTION 24. Section 14.025, Agriculture Code, is amended to
17-9 read as follows:
17-10 Sec. 14.025. INJUNCTION. If, after 15 days' notice, a
17-11 warehouseman refuses to comply with this subchapter, the department
17-12 shall apply for an injunction. The courts of this state are vested
17-13 with jurisdiction to issue a temporary or permanent injunction
17-14 against:
17-15 (1) operation of a public commodity <grain> warehouse
17-16 or issuance of receipts or scale weight tickets without a license;
17-17 and
17-18 (2) interference by any person with the carrying out
17-19 by the department, or by a receiver appointed under Section 14.024
17-20 of this code, of duties and powers granted by this subchapter.
17-21 SECTION 25. Subchapter A, Chapter 14, Agriculture Code, is
17-22 amended by adding Section 14.0261 to read as follows:
17-23 Sec. 14.0261. WAREHOUSE RECEIPT AS PRIMA FACIE EVIDENCE. In
17-24 an action involving a warehouseman that is brought under this
17-25 subchapter, a warehouse receipt constitutes prima facie evidence of
17-26 the truth of the facts stated in the receipt.
17-27 SECTION 26. Subchapter A, Chapter 14, Agriculture Code, is
18-1 amended by adding Section 14.0262 to read as follows:
18-2 Sec. 14.0262. RECOVERY OF COURT COSTS. (a) On prevailing
18-3 in an action commenced by the department through the attorney
18-4 general under this subchapter, the department and the attorney
18-5 general are each entitled to recover:
18-6 (1) investigation costs and fees;
18-7 (2) reasonable attorney's fees;
18-8 (3) court costs; and
18-9 (4) other costs relating to the action, including the
18-10 cost of depositions and other forms of discovery and copying
18-11 charges.
18-12 (b) The costs recoverable under this section are in addition
18-13 to other relief available to the department or attorney general.
18-14 SECTION 27. Section 14.028(a), Agriculture Code, is amended
18-15 to read as follows:
18-16 (a) A person commits an offense if the person:
18-17 (1) transacts any public commodity <grain> warehouse
18-18 business without first obtaining a license required by this
18-19 subchapter; or
18-20 (2) continues to transact public commodity <grain>
18-21 warehouse business after a license has been revoked or suspended,
18-22 except as permitted under Section 14.016 of this subchapter.
18-23 SECTION 28. Section 14.029(a), Agriculture Code, is amended
18-24 to read as follows:
18-25 (a) A person commits an offense if the person:
18-26 (1) issues or aids in issuing a receipt or scale
18-27 weight ticket knowing that the commodity <grain> covered by the
19-1 receipt or scale weight ticket has not been actually received at
19-2 the public commodity <grain> warehouse;
19-3 (2) issues or aids in issuing a duplicate or
19-4 additional negotiable receipt for a commodity <grain> knowing that
19-5 a former negotiable receipt for the same commodity <grain> or any
19-6 part of the commodity <grain> is outstanding except as permitted by
19-7 Section 14.019 of this code; or
19-8 (3) fraudulently and without proper authority
19-9 represents, forges, alters, counterfeits, or simulates any license,
19-10 scale weight ticket, or receipt provided for by this subchapter.
19-11 SECTION 29. Sections 14.030(a) and (b), Agriculture Code,
19-12 are amended to read as follows:
19-13 (a) A person commits an offense if the person:
19-14 (1) delivers a commodity <grain> out of a public
19-15 commodity <grain> warehouse knowing that a negotiable receipt for
19-16 the commodity <grain> is outstanding and without possessing that
19-17 receipt; or
19-18 (2) delivers a commodity out of a public commodity
19-19 <grain> warehouse:
19-20 (A) knowing that a nonnegotiable receipt or
19-21 scale weight ticket is outstanding;
19-22 (B) without the prior approval of the person
19-23 lawfully entitled to delivery; and
19-24 (C) without the delivery being shown on the
19-25 appropriate records of the warehouseman.
19-26 (b) It is a defense to prosecution under this section that
19-27 the person's action is:
20-1 (1) a sale or other disposition of a commodity <grain>
20-2 in lawful enforcement of a warehouseman's lien or on a
20-3 warehouseman's lawful termination of a storing, shipping, or
20-4 handling agreement; or
20-5 (2) permitted by a rule of the department necessary to
20-6 carry out this subchapter.
20-7 SECTION 30. Section 14.033, Agriculture Code, is amended to
20-8 read as follows:
20-9 Sec. 14.033. PENALTY FOR DEPOSITING COMMODITY <GRAIN>
20-10 WITHOUT TITLE. (a) A person commits an offense if the person:
20-11 (1) deposits a commodity <grain> without having title
20-12 to the commodity <grain> or deposits a commodity <grain> on which
20-13 there is a lien or mortgage;
20-14 (2) receives for the commodity <grain> a negotiable
20-15 receipt; and
20-16 (3) negotiates the receipt for value with intent to
20-17 deceive and without disclosing the person's lack of title or the
20-18 existence of a lien or mortgage on the commodity <grain>.
20-19 (b) An offense under this section is a felony of the second
20-20 degree.
20-21 SECTION 31. Section 14.034, Agriculture Code, is amended to
20-22 read as follows:
20-23 Sec. 14.034. PENALTY FOR STEALING COMMODITY <GRAIN> OR
20-24 RECEIVING STOLEN COMMODITY <GRAIN>. (a) A person commits an
20-25 offense if the person:
20-26 (1) obtains or exercises control over a commodity
20-27 <grain> stored in a public commodity <grain> warehouse without the
21-1 owner's effective consent and with the intent to deprive the owner
21-2 of the commodity <grain>;
21-3 (2) obtains from another person a commodity <grain>
21-4 stolen from a public commodity <grain> warehouse knowing that the
21-5 commodity <grain> is stolen; or
21-6 (3) exercises control over a commodity <grain> stolen
21-7 from a public commodity <grain> warehouse knowing that the
21-8 commodity <grain> is stolen.
21-9 (b) An offense under this section is a felony of the second
21-10 degree.
21-11 SECTION 32. Subchapter A, Chapter 14, Agriculture Code, is
21-12 amended by adding Section 14.036 to read as follows:
21-13 Sec. 14.036. POSTING OF STORAGE RATES OR TARIFFS. (a) A
21-14 public commodity warehouse licensed under this subchapter shall
21-15 post a copy of the storage rates and tariffs charged by the
21-16 warehouse at the main warehouse office and at each warehouse
21-17 operating under the license. The public warehouse shall post any
21-18 change to the posted rates or tariffs not later than the 14th day
21-19 before the day on which the change is to take effect.
21-20 (b) Department inspectors shall check compliance with this
21-21 section during inspections of a public commodity warehouse under
21-22 this subchapter.
21-23 SECTION 33. Title 132A, Revised Statutes, is amended by
21-24 adding Article 9103 to read as follows:
21-25 Art. 9103. NONAGRICULTURAL PUBLIC WAREHOUSES
21-26 Sec. 1. DEFINITIONS. In this article:
21-27 (1) "Department" means the Texas Department of
22-1 Licensing and Regulation.
22-2 (2) "Public warehouse" means a house, building, or
22-3 room in which personal property that is not an agricultural
22-4 commodity is stored and protected by a public warehouseman from
22-5 damage by the elements.
22-6 (3) "Public warehouseman" means a person who stores
22-7 personal property that is not an agricultural commodity for hire.
22-8 (4) "Agricultural commodity" means a commodity defined
22-9 by Section 14.001, Agriculture Code, and its subsequent amendments,
22-10 including an agricultural product included by the Department of
22-11 Agriculture as a commodity subject to Chapter 14, Agriculture Code,
22-12 and its subsequent amendments.
22-13 Sec. 2. WAREHOUSE REGULATION. A public warehouse operating
22-14 under this article is under the supervision of the department.
22-15 Sec. 3. CERTIFICATE TO TRANSACT BUSINESS. No person may
22-16 operate a public warehouse without first obtaining a certificate to
22-17 transact business as a public warehouseman from the department.
22-18 Sec. 4. APPLICATION FOR CERTIFICATE. (a) To obtain a
22-19 certificate to transact business under this article, a person must
22-20 apply in writing to the department on a form prescribed by the
22-21 department. The application must state the name and location of
22-22 the public warehouse and:
22-23 (1) the name of each person with an interest as owner
22-24 or principal in the public warehouse; or
22-25 (2) the name of the president, secretary, and
22-26 treasurer of the corporation if a corporation owns or manages the
22-27 public warehouse.
23-1 (b) The department shall issue the certificate and retain
23-2 for department records a copy of the application.
23-3 Sec. 5. BOND. (a) A person receiving a certificate to
23-4 transact business shall file a bond with the department.
23-5 (b) The bond must be:
23-6 (1) payable to the state;
23-7 (2) of good and sufficient surety;
23-8 (3) conditioned on faithful performance of the
23-9 applicant's duty as a public warehouseman; and
23-10 (4) in the amount of $5,000.
23-11 (c) A bond is subject to approval by the department.
23-12 Sec. 6. RECEIPTS. (a) The owner or depositor of property
23-13 stored in a public warehouse may request from the public
23-14 warehouseman a receipt for the property stored in the warehouse.
23-15 (b) The receipt shall be signed by the public warehouseman
23-16 or the warehouseman's agent and state:
23-17 (1) that the receipt is issued by a public warehouse;
23-18 (2) the date of its issuance;
23-19 (3) the name and location of the public warehouse in
23-20 which the property is stored; and
23-21 (4) the description, quantity, number, and marks of
23-22 the property stored.
23-23 (c) The public warehouseman shall number receipts
23-24 consecutively in the order of their issue and shall keep a correct
23-25 record of receipts issued that is available for public inspection
23-26 at reasonable hours.
23-27 Sec. 7. DUPLICATE RECEIPTS. (a) A public warehouseman may
24-1 not issue a duplicate receipt or two receipts bearing the same
24-2 number from the same public warehouse during the same calendar
24-3 year, except as provided by Subsection (b) of this section.
24-4 (b) If a receipt is lost or destroyed, the public
24-5 warehouseman shall issue a new receipt that:
24-6 (1) bears the same date and number as the original
24-7 receipt;
24-8 (2) is plainly marked "duplicate" on its face; and
24-9 (3) is secured with a deposit:
24-10 (A) made by the person requesting the duplicate
24-11 receipt; and
24-12 (B) acceptable to the warehouseman to protect a
24-13 person who may hold the original receipt in good faith and for
24-14 valuable consideration.
24-15 Sec. 8. RECEIPT TO BE ISSUED ONLY ON DELIVERY. A public
24-16 warehouseman may not issue a receipt until the goods secured by the
24-17 receipt are actually delivered to the public warehouse and are
24-18 under the control of the public warehouseman issuing the receipt.
24-19 Sec. 9. DELIVERY. (a) A public warehouseman shall
24-20 immediately deliver property held in the warehouse on:
24-21 (1) presentation of a properly endorsed receipt issued
24-22 by the warehouseman to represent the property; and
24-23 (2) payment by the holder of the receipt of all proper
24-24 warehouse charges on property represented by the receipt.
24-25 (b) Unless a receipt has been lost or canceled, a public
24-26 warehouseman may not deliver property represented by a receipt
24-27 until the receipt is surrendered and canceled.
25-1 (c) On delivery of goods represented by a receipt, the
25-2 public warehouseman shall cancel the receipt by writing "canceled"
25-3 in ink on the receipt and placing the warehouseman's name on the
25-4 face of the receipt. A canceled receipt is void and may not be
25-5 circulated.
25-6 (d) A public warehouseman who fails to strictly comply with
25-7 this section is liable to the legal holder of the receipt for the
25-8 full value at the time of the default of the property represented
25-9 by the receipt.
25-10 Sec. 10. EXCEPTIONS. (a) This article does not apply to
25-11 private warehouses or the issuance of receipts by the owners or
25-12 managers of private warehouses.
25-13 (b) This article does not prohibit a public warehouseman
25-14 from issuing the same type of receipt issued by a private
25-15 warehouse, provided that the face of the receipt is plainly
25-16 marked: "Not a public warehouse receipt."
25-17 Sec. 11. STORAGE CHARGES. (a) The department may set
25-18 minimum storage charges for a public warehouse operating under this
25-19 article.
25-20 (b) The department is not required to set equal charges at
25-21 all places or all times and may take into consideration the local
25-22 conditions and volume of business of each public warehouse.
25-23 Sec. 12. REVOCATION OF A CERTIFICATE. A district court of
25-24 the county in which a public warehouse is located may revoke the
25-25 certificate of the warehouse on the petition of any person stating
25-26 particular violations of the law.
25-27 SECTION 34. The following laws are repealed:
26-1 (1) Subchapter C, Chapter 14, Agriculture Code; and
26-2 (2) Chapter 113, Agriculture Code.
26-3 SECTION 35. This Act takes effect September 1, 1993.
26-4 SECTION 36. The importance of this legislation and the
26-5 crowded condition of the calendars in both houses create an
26-6 emergency and an imperative public necessity that the
26-7 constitutional rule requiring bills to be read on three several
26-8 days in each house be suspended, and this rule is hereby suspended.