82R6721 TRH-F
 
  By: Landtroop H.B. No. 1361
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of public grain warehouse operators.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 14.066(a), Agriculture Code, is amended
  to read as follows:
         (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 unless the action involves:
               (1)  rulemaking;
               (2)  the assessment of an administrative penalty;
               (3)  the imposition of a license sanction; or
               (4)  any other action for which a specific
  administrative or judicial remedy is available under:
                     (A)  this chapter;
                     (B)  Chapter 12; or
                     (C)  Chapter 2001, Government Code.
         SECTION 2.  Section 14.082, Agriculture Code, is amended by
  amending Subsection (a) and adding Subsection (g) to read as
  follows:
         (a)  If the department determines that a warehouse operator
  does not possess sufficient grain to cover outstanding receipts and
  outstanding scale weight tickets issued or assumed by the warehouse
  operator, or if a warehouse operator refuses or is unable to submit
  records or property for lawful inspection or the department is
  unable to conduct an inspection of the warehouse due to the
  condition of the warehouse or grain stored in the warehouse, the
  department may seal the warehouse to prevent delivery or receipt of
  grain except as authorized by the department, suspend the warehouse
  operator's license, and give notice to the warehouse operator
  requiring the warehouse operator to:
               (1)  submit records or property for inspection;
               (2)  correct any condition interfering with the
  department's inspection of a warehouse or grain; or
               (3)  cover a shortage of a particular type of grain by:
                     (A) [(1)]  storing to the credit of or delivering
  to each depositor affected by the shortage grain of the same type
  and quality that is stored at any of the warehouse operator's
  licensed warehouses in this state and that has been designated as
  company-owned grain by the warehouse operator;
                     (B) [(2)]  purchasing and storing to the credit of
  or delivering to each depositor affected by the shortage grain of
  the same type and quality;
                     (C) [(3)]  selling company-owned grain of a
  different type and paying to each depositor affected by the
  shortage, on a pro rata basis, the market value of the depositor's
  grain as determined on the day the shortage was discovered by the
  department; or
                     (D) [(4)]  using any combination of the remedies
  described by Paragraphs (A)-(C) [Subdivisions (1)-(3)] or another
  fair and reasonable method for meeting the shortage approved by the
  department.
         (g)  A suspension issued under this section remains in effect
  until lifted by the department through written notice to the
  warehouse operator or following an appeal under Section 14.066.
         SECTION 3.  Section 14.083, Agriculture Code, is amended by
  amending Subsection (c) and adding Subsection (f) to read as
  follows:
         (c)  In addition to or in lieu of a suspension authorized by
  this chapter, if [If] the department considers it necessary, the
  department may without a hearing suspend a license and prohibit the
  movement of grain into or out of a warehouse [without a hearing] for
  not more than 30 days.  For good cause shown, the department may
  extend a suspension issued under this subsection for one or more
  additional periods of up to 30 days each but not to cumulatively
  exceed 90 [30] days in one licensing period.
         (f)  A suspension issued under Subsection (c) remains in
  effect until the suspension:
               (1)  is lifted by the department through written notice
  to the warehouse operator;
               (2)  is lifted by the department following an appeal
  under Section 14.066; or
               (3)  expires by operation of law in accordance with:
                     (A)  the department's notice of suspension; or
                     (B)  the ending of the period specified by
  Subsection (c).
         SECTION 4.  Section 14.082(f), Agriculture Code, is
  repealed.
         SECTION 5.  This Act takes effect September 1, 2011.