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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of public grain warehouse operators. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 14.012, Agriculture Code, is amended to |
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read as follows: |
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Sec. 14.012. FINANCIAL [BUSINESS] INFORMATION. (a) In |
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this section, "financial information" means: |
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(1) a financial statement or other document provided |
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by a warehouse operator to the department to establish the |
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warehouse operator's net worth under Section 14.031(e); |
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(2) a financial audit provided by a warehouse operator |
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to the department; |
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(3) a statement of the price paid by or to a warehouse |
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operator for grain delivered to, stored by, or handled by the |
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warehouse operator; or |
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(4) a statement of the terms of a payment described by |
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Subdivision (3). |
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(b) Except as provided by Subsections (c) and (d), financial |
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information provided to the department by a warehouse operator |
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under this chapter [The following information, prepared by the
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department in the course of its regulatory authority under this
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chapter or required to be submitted to the department in accordance
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with the department's administration of this chapter,] is |
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confidential and not subject to public disclosure[:
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[(1)
inspection or investigation reports containing
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information regarding grain inventory; and
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[(2)
financial information provided to the department
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to establish net worth for purposes of licensing]. |
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(c) [(b)] Notwithstanding Subsection (b), [(a), inspection
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reports containing information regarding grain inventory of a
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warehouse operator or] financial information of a warehouse |
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operator provided to the department [to establish net worth] may be |
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disclosed: |
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(1) [entered into evidence] without sealing [and made
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public] in[:
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[(A)] an administrative proceeding commenced by |
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the department against the [a] warehouse operator; |
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(2) to the attorney general or to a local or state law |
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enforcement officer, [(B)
a civil or criminal proceeding
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commenced by] a county attorney, or a district attorney who, [or the
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attorney general,] either independently or on behalf of the |
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department, is investigating the [, against a] warehouse operator; |
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[or] |
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(3) in [(C)] a civil proceeding commenced by the |
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warehouse operator against the department; |
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(4) in response to a subpoena from a party in a civil |
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proceeding commenced against the warehouse operator; |
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(5) [(2) provided] to the issuer of the [a] warehouse |
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operator's bond or letter of credit [for the purpose of
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establishing a claim on the warehouse operator's bond or letter of
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credit]; |
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(6) [(3) disclosed] to the public after: |
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(A) revocation of the [a] warehouse operator's |
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license; |
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(B) a voluntary closeout of all of the license |
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holder's facilities in this state; |
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(C) a petition for bankruptcy has been filed by |
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or against the warehouse operator; or |
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(D) a receiver is appointed for the warehouse |
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operator's assets; or |
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(7) [(4) disclosed] to any federal agency or any |
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agency of another state conducting a compliance inspection or |
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criminal or civil investigation involving the handling, storing, |
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shipping, selling, purchasing, or receipt of grain. |
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(d) Notwithstanding Subsection (b), a warehouse operator: |
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(1) shall provide to a person at the person's request a |
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copy of an agreement or contract between the person and the |
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warehouse operator; and |
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(2) shall provide financial information to a person |
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who authored or contributed to the creation of the financial |
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information, for the purpose of confirming the authenticity, |
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truthfulness, or accuracy of the financial information. |
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(e) A warehouse operator may not redact a contract, |
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agreement, or financial information provided to a person under |
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Subsection (d). |
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SECTION 2. Sections 14.031(d) and (e), Agriculture Code, |
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are amended to read as follows: |
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(d) The bond must be in an amount of not less than $35,000 |
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but not more than $500,000 [$20,000] and be based on 10 [six] cents |
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per bushel of storage capacity. |
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(e) If the actual net worth of an applicant equals less than |
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the greater of 25 cents per bushel of storage capacity or $200,000, |
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the applicant shall file a deficiency bond in an amount equal to the |
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difference between the actual net worth and the greater of $200,000 |
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or the [an] amount determined by multiplying 25 cents times each |
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bushel of storage capacity in the applicant's warehouse. A |
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deficiency bond is in addition to the bond required of an applicant |
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by this section. |
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SECTION 3. Section 14.066(a), Agriculture Code, is amended |
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to read as follows: |
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(a) A department action or order affecting a warehouse |
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operator under this chapter[, other than by rulemaking, assessment
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of an administrative penalty, or imposition of a license sanction,
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including a suspension under Section 14.083(c),] is appealable in |
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accordance with this section unless the action involves: |
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(1) rulemaking; |
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(2) the assessment of an administrative penalty; |
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(3) the imposition of a license sanction; or |
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(4) any other action for which a specific |
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administrative or judicial remedy is available under: |
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(A) this chapter; |
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(B) Chapter 12; or |
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(C) Chapter 2001, Government Code. |
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SECTION 4. Section 14.082, Agriculture Code, is amended by |
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amending Subsection (a) and adding Subsection (g) to read as |
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follows: |
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(a) If the department determines that a warehouse operator |
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does not possess sufficient grain to cover outstanding receipts and |
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outstanding scale weight tickets issued or assumed by the warehouse |
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operator, or if a warehouse operator refuses or is unable to submit |
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records or property for lawful inspection or the department is |
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unable to conduct an inspection of the warehouse due to the |
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condition of the warehouse or grain stored in the warehouse, the |
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department may seal the warehouse to prevent delivery or receipt of |
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grain except as authorized by the department, suspend the warehouse |
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operator's license, and give notice to the warehouse operator |
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requiring the warehouse operator to: |
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(1) submit records or property for inspection; |
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(2) correct any condition interfering with the |
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department's inspection of a warehouse or grain; or |
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(3) cover a shortage of a particular type of grain by: |
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(A) [(1)] storing to the credit of or delivering |
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to each depositor affected by the shortage grain of the same type |
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and quality that is stored at any of the warehouse operator's |
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licensed warehouses in this state and that has been designated as |
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company-owned grain by the warehouse operator; |
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(B) [(2)] purchasing and storing to the credit of |
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or delivering to each depositor affected by the shortage grain of |
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the same type and quality; |
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(C) [(3)] selling company-owned grain of a |
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different type and paying to each depositor affected by the |
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shortage, on a pro rata basis, the market value of the depositor's |
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grain as determined on the day the shortage was discovered by the |
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department; or |
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(D) [(4)] using any combination of the remedies |
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described by Paragraphs (A)-(C) [Subdivisions (1)-(3)] or another |
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fair and reasonable method for meeting the shortage approved by the |
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department. |
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(g) A suspension issued under this section remains in effect |
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until lifted by the department through written notice to the |
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warehouse operator or following an appeal under Section 14.066. |
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SECTION 5. Section 14.083, Agriculture Code, is amended by |
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amending Subsection (c) and adding Subsection (f) to read as |
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follows: |
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(c) In addition to or in lieu of a suspension authorized by |
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this chapter, if [If] the department considers it necessary, the |
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department may without a hearing suspend a license and prohibit the |
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movement of grain into or out of a warehouse [without a hearing] for |
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not more than 30 days. For good cause shown, the department may |
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extend a suspension issued under this subsection for one or more |
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additional periods of up to 30 days each but not to cumulatively |
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exceed 90 [30] days in one licensing period. |
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(f) A suspension issued under Subsection (c) remains in |
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effect until the suspension: |
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(1) is lifted by the department through written notice |
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to the warehouse operator; |
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(2) is lifted by the department following an appeal |
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under Section 14.066; or |
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(3) expires by operation of law in accordance with: |
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(A) the department's notice of suspension; or |
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(B) the ending of the period specified by |
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Subsection (c). |
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SECTION 6. Section 14.082(f), Agriculture Code, is |
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repealed. |
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SECTION 7. The changes in law made by Sections 14.031(d) and |
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(e), Agriculture Code, as amended by this Act, apply only to a |
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license issued, renewed, or amended on or after the effective date |
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of this Act. A license issued, renewed, or amended before the |
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effective date of this Act is governed by the law in effect when the |
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license was issued, renewed, or amended, and the former law is |
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continued in effect for that purpose. |
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SECTION 8. This Act takes effect September 1, 2011. |