1-1 By: Swinford (Senate Sponsor - Shelley) H.B. No. 2501
1-2 (In the Senate - Received from the House May 13, 1993;
1-3 May 14, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 20, 1993, reported favorably, as amended, by the
1-5 following vote: Yeas 9, Nays 0; May 20, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Sims x
1-9 Truan x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Brown x
1-14 Carriker x
1-15 Lucio x
1-16 Montford x
1-17 Ratliff x
1-18 Shelley x
1-19 COMMITTEE AMENDMENT NO. 1 By: Shelley
1-20 Amend H.B. 2501 as follows:
1-21 (1) Amend Page 2, line 70 by striking subsection (3) and
1-22 inserting the following new subsection:
1-23 (3) "Public Warehouseman" means a person who stores personal
1-24 property that is not an agricultural commodity for hire and issues
1-25 a negotiable warehouse receipt for such property.
1-26 COMMITTEE AMENDMENT NO. 2 By: Shelley
1-27 Amend H.B. 2501 as follows:
1-28 (1) Amend Page 3, line 32 by striking subsections (a) and
1-29 (b) and inserting the following new subsections:
1-30 (a) The owner or depositor of property stored in a public
1-31 warehouse may request from the public warehouseman a negotiable
1-32 receipt for the property stored in the warehouse.
1-33 (b) The receipt shall be signed by the public warehouseman
1-34 or the warehouseman's agent and state the information required by
1-35 Section 7.202 of the Uniform Commercial Code.
1-36 COMMITTEE AMENDMENT NO. 3 By: Shelley
1-37 Amend H.B. 2501 as follows:
1-38 (1) Amend Page 3, line 43 by striking subsection (c) and
1-39 inserting the following new subsection:
1-40 (c) This article does not apply to public warehouses owned,
1-41 controlled, operated, or leased by motor carriers licensed by and
1-42 within the jurisdiction of the Railroad Commission of Texas under
1-43 the provisions of Article 911b, Vernon's Texas Civil Statutes, or
1-44 their agents.
1-45 A BILL TO BE ENTITLED
1-46 AN ACT
1-47 relating to the regulation of warehouses and certain cotton buyers.
1-48 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-49 SECTION 1. Section 14.003, Agriculture Code, is amended by
1-50 adding Subsection (d) to read as follows:
1-51 (d) The following information prepared by the department in
1-52 the course of its regulatory authority under this subchapter or
1-53 required to be submitted to the department in accordance with the
1-54 department's administration of this subchapter is confidential and
1-55 not subject to public disclosure:
1-56 (1) inspection reports containing information
1-57 regarding grain inventory; and
1-58 (2) financial information provided to the department
1-59 to establish net worth for purposes of licensure.
1-60 SECTION 2. Subchapter A, Chapter 14, Agriculture Code, is
1-61 amended by adding Section 14.0091 to read as follows:
1-62 Sec. 14.0091. OBLIGATIONS OF WAREHOUSEMAN. The obligations
1-63 of a warehouseman include the obligation to:
1-64 (1) deliver a commodity to a person holding a receipt
1-65 for a commodity stored in the warehouse; and
1-66 (2) maintain the quantity and quality of a commodity
1-67 as evidenced by and indicated on a warehouse receipt.
1-68 SECTION 3. The heading of Section 14.010, Agriculture Code,
2-1 is amended to read as follows:
2-2 Sec. 14.010. RECOVERY ON BOND; LIABILITY OF WAREHOUSEMAN.
2-3 SECTION 4. Section 14.010, Agriculture Code, is amended by
2-4 adding Subsection (c) to read as follows:
2-5 (c) A warehouseman is liable for damages for loss of or
2-6 injury to a commodity caused by the warehouseman's failure to
2-7 exercise the care that a reasonably prudent person would exercise
2-8 in regard to the commodity under similar circumstances, but, unless
2-9 otherwise agreed, a warehouseman is not liable for damages to a
2-10 commodity that could not have been avoided through the exercise of
2-11 that care.
2-12 SECTION 5. Section 14.017, Agriculture Code, is amended by
2-13 adding Subsection (f) to read as follows:
2-14 (f) Unless previously canceled in accordance with the
2-15 provisions of Chapter 7, Business & Commerce Code, a Texas
2-16 commodity warehouse receipt issued under this chapter expires 10
2-17 years after the date of issuance.
2-18 SECTION 6. Subchapter A, Chapter 14, Agriculture Code, is
2-19 amended by adding Section 14.0261 to read as follows:
2-20 Sec. 14.0261. WAREHOUSE RECEIPT AS PRIMA FACIE EVIDENCE. In
2-21 an action involving a warehouseman that is brought under this
2-22 subchapter, a warehouse receipt constitutes prima facie evidence of
2-23 the truth of the facts stated in the receipt.
2-24 SECTION 7. Subchapter A, Chapter 14, Agriculture Code, is
2-25 amended by adding Section 14.0262 to read as follows:
2-26 Sec. 14.0262. RECOVERY OF COURT COSTS. (a) On prevailing
2-27 in an action commenced by the department through the attorney
2-28 general under this subchapter, the department and the attorney
2-29 general are each entitled to recover:
2-30 (1) investigation costs and fees;
2-31 (2) reasonable attorney's fees;
2-32 (3) court costs; and
2-33 (4) other costs relating to the action, including the
2-34 cost of depositions and other forms of discovery and copying
2-35 charges.
2-36 (b) The costs recoverable under this section are in addition
2-37 to other relief available to the department or attorney general.
2-38 SECTION 8. Subchapter A, Chapter 14, Agriculture Code, is
2-39 amended by adding Section 14.036 to read as follows:
2-40 Sec. 14.036. POSTING OF STORAGE RATES OR TARIFFS. (a) A
2-41 public commodity warehouse licensed under this subchapter shall
2-42 post a copy of the storage rates and tariffs charged by the
2-43 warehouse at the main warehouse office and at each warehouse
2-44 operating under the license. The public warehouse shall post any
2-45 change to the posted rates or tariffs not later than the 14th day
2-46 before the day on which the change is to take effect.
2-47 (b) Department inspectors shall check compliance with this
2-48 section during inspections of a public commodity warehouse under
2-49 this subchapter.
2-50 SECTION 9. Title 132A, Revised Statutes, is amended by
2-51 adding Article 9103 to read as follows:
2-52 Art. 9103. NONAGRICULTURAL PUBLIC WAREHOUSES
2-53 Sec. 1. DEFINITIONS. In this article:
2-54 (1) "Department" means the Texas Department of
2-55 Licensing and Regulation.
2-56 (2) "Public warehouse" means a house, building, or
2-57 room in which personal property that is not an agricultural
2-58 commodity is stored and protected by a public warehouseman from
2-59 damage by the elements. "Public warehouse" does not include a
2-60 self-service storage facility as defined in Chapter 59, Property
2-61 Code.
2-62 (3) "Public warehouseman" means a person who stores
2-63 personal property that is not an agricultural commodity for hire.
2-64 (4) "Agricultural commodity" means wheat, grain
2-65 sorghum, corn, oats, barley, rye, soybeans, cotton, rice, peas,
2-66 beans, or any other agricultural product customarily stored in a
2-67 public warehouse.
2-68 Sec. 2. WAREHOUSE REGULATION. A public warehouse operating
2-69 under this article is under the supervision of the department.
2-70 Sec. 3. CERTIFICATE TO TRANSACT BUSINESS. No person may
3-1 operate a public warehouse without first obtaining a certificate to
3-2 transact business as a public warehouseman from the department.
3-3 Sec. 4. APPLICATION FOR CERTIFICATE. (a) To obtain a
3-4 certificate to transact business under this article, a person must
3-5 apply in writing to the department on a form prescribed by the
3-6 department. The application must state the name and location of
3-7 the public warehouse and:
3-8 (1) the name of each person with an interest as owner
3-9 or principal in the public warehouse; or
3-10 (2) the name of the president, secretary, and
3-11 treasurer of the corporation if a corporation owns or manages the
3-12 public warehouse.
3-13 (b) The department shall issue the certificate and retain
3-14 for department records a copy of the application.
3-15 Sec. 5. BOND. (a) A person receiving a certificate to
3-16 transact business shall file a bond with the department.
3-17 (b) The bond must be:
3-18 (1) payable to the state;
3-19 (2) of good and sufficient surety;
3-20 (3) conditioned on faithful performance of the
3-21 applicant's duty as a public warehouseman; and
3-22 (4) in the amount of $5,000.
3-23 (c) A bond is subject to approval by the department.
3-24 Sec. 6. RECEIPTS. (a) The owner or depositor of property
3-25 stored in a public warehouse may request from the public
3-26 warehouseman a receipt for the property stored in the warehouse.
3-27 (b) The receipt shall be signed by the public warehouseman
3-28 or the warehouseman's agent and state:
3-29 (1) that the receipt is issued by a public warehouse;
3-30 (2) the date of its issuance;
3-31 (3) the name and location of the public warehouse in
3-32 which the property is stored; and
3-33 (4) the description, quantity, number, and marks of
3-34 the property stored.
3-35 (c) The public warehouseman shall number receipts
3-36 consecutively in the order of their issue and shall keep a correct
3-37 record of receipts issued that is available for public inspection
3-38 at reasonable hours.
3-39 Sec. 7. DUPLICATE RECEIPTS. (a) A public warehouseman may
3-40 not issue a duplicate receipt or two receipts bearing the same
3-41 number from the same public warehouse during the same calendar
3-42 year, except as provided by Subsection (b) of this section.
3-43 (b) If a receipt is lost or destroyed, the public
3-44 warehouseman shall issue a new receipt that:
3-45 (1) bears the same date and number as the original
3-46 receipt;
3-47 (2) is plainly marked "duplicate" on its face; and
3-48 (3) is secured with a deposit:
3-49 (A) made by the person requesting the duplicate
3-50 receipt; and
3-51 (B) acceptable to the warehouseman to protect a
3-52 person who may hold the original receipt in good faith and for
3-53 valuable consideration.
3-54 Sec. 8. RECEIPT TO BE ISSUED ONLY ON DELIVERY. A public
3-55 warehouseman may not issue a receipt until the goods secured by the
3-56 receipt are actually delivered to the public warehouse and are
3-57 under the control of the public warehouseman issuing the receipt.
3-58 Sec. 9. DELIVERY. (a) A public warehouseman shall
3-59 immediately deliver property held in the warehouse on:
3-60 (1) presentation of a properly endorsed receipt issued
3-61 by the warehouseman to represent the property; and
3-62 (2) payment by the holder of the receipt of all proper
3-63 warehouse charges on property represented by the receipt.
3-64 (b) Unless a receipt has been lost or canceled, a public
3-65 warehouseman may not deliver property represented by a receipt
3-66 until the receipt is surrendered and canceled.
3-67 (c) On delivery of goods represented by a receipt, the
3-68 public warehouseman shall cancel the receipt by writing "canceled"
3-69 in ink on the receipt and placing the warehouseman's name on the
3-70 face of the receipt. A canceled receipt is void and may not be
4-1 circulated.
4-2 (d) A public warehouseman who fails to strictly comply with
4-3 this section is liable to the legal holder of the receipt for the
4-4 full value at the time of the default of the property represented
4-5 by the receipt.
4-6 Sec. 10. EXCEPTIONS. (a) This article does not apply to
4-7 private warehouses or the issuance of receipts by the owners or
4-8 managers of private warehouses.
4-9 (b) This article does not prohibit a public warehouseman
4-10 from issuing the same type of receipt issued by a private
4-11 warehouse, provided that the face of the receipt is plainly
4-12 marked: "Not a public warehouse receipt."
4-13 Sec. 11. STORAGE CHARGES. (a) The department may set
4-14 minimum storage charges for a public warehouse operating under this
4-15 article.
4-16 (b) The department is not required to set equal charges at
4-17 all places or all times and may take into consideration the local
4-18 conditions and volume of business of each public warehouse.
4-19 Sec. 12. REVOCATION OF CERTIFICATE. After a hearing the
4-20 commissioner may deny, suspend, or revoke a certificate to transact
4-21 business and may impose administrative sanctions and penalties and
4-22 seek injunctive relief and civil penalties against a public
4-23 warehouseman as provided by Article 9100, Revised Statutes.
4-24 SECTION 10. Chapter 113, Agriculture Code, is repealed.
4-25 SECTION 11. This Act takes effect September 1, 1993.
4-26 SECTION 12. The importance of this legislation and the
4-27 crowded condition of the calendars in both houses create an
4-28 emergency and an imperative public necessity that the
4-29 constitutional rule requiring bills to be read on three several
4-30 days in each house be suspended, and this rule is hereby suspended.
4-31 * * * * *
4-32 Austin,
4-33 Texas
4-34 May 20, 1993
4-35 Hon. Bob Bullock
4-36 President of the Senate
4-37 Sir:
4-38 We, your Committee on Natural Resources to which was referred H.B.
4-39 No. 2501, have had the same under consideration, and I am
4-40 instructed to report it back to the Senate with the recommendation
4-41 that it do pass, as amended, and be printed.
4-42 Sims,
4-43 Chairman
4-44 * * * * *
4-45 WITNESSES
4-46 FOR AGAINST ON
4-47 ___________________________________________________________________
4-48 Name: Bob Tarrant x
4-49 Representing: Tx Dept. of Agriculture
4-50 City: Giddings
4-51 -------------------------------------------------------------------
4-52 Name: Bob Vetters
4-53 Representing: Assn. of Texas Warehousemen
4-54 City: San Antonio
4-55 -------------------------------------------------------------------
4-56 Name: John Sneed x
4-57 Representing: Tx Dept. of Agriculture
4-58 City: Austin
4-59 -------------------------------------------------------------------