reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-406. Appointment by nonresident licensee of agent to receive process

80-4-406. Appointment by nonresident licensee of agent to receive process.
A nonresident applying for a license under this chapter shall file a written power of attorney, designating the secretary of state as the nonresident's agent upon whom service of process may be had if legal action is brought against the nonresident. A nonresident who has an appointed resident agent upon whom legal process may be served as provided by law is not required to designate the secretary of state as the nonresident's agent for service of process. The department must be furnished a copy of the designation of the resident agent, and the copy must be certified by the secretary of state.
History: En. Sec. 6, Ch. 539, L. 1983; amd. Sec. 2575, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-407. Reports to the department

80-4-407. Reports to the department.
Each person licensed under parts 5 and 6 of this chapter shall report to the department at intervals set by rule of the department on forms prepared by it. The reports must show the total weight of each kind of agricultural commodity received and shipped, the amount of outstanding warehouse receipts on that date, and a statement of the amount of agricultural commodities on hand to cover the outstanding warehouse receipts. The department may also, by rule, require special reports at any time.
History: En. Sec. 7, Ch. 539, L. 1983.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-408. Examination of books

80-4-408. Examination of books.
The department is authorized, through its officials, employees, or designated agents, to examine or copy all books, records, papers, and accounts of persons licensed under parts 5 and 6 of this chapter.
History: En. Sec. 8, Ch. 539, L. 1983.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-409. Confidentiality of records

80-4-409. Confidentiality of records.
All financial statements of warehouse operators and commodity dealers required under the provisions of parts 5 and 6 of this chapter must be kept confidential by the department and are not subject to disclosure except:
(1) upon written permission of the licensee;
(2) in actions or administrative proceedings commenced under the provisions of parts 4 through 7 of this chapter;
(3) when required by subpoena or court order;
(4) when disclosed to law enforcement agencies in connection with the investigation or prosecution of criminal offenses; or
(5) when released to a bonding company approved by the department.
History: En. Sec. 9, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 4, Ch. 76, L. 1997.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-410. Publication of reports

80-4-410. Publication of reports.
The department may publish the results of any investigation made. It may publish the names and addresses of persons licensed under parts 5 and 6 of this chapter, and it may also publish a list of all licenses terminated under parts 5 and 6 of this chapter and the causes therefor.
History: En. Sec. 10, Ch. 539, L. 1983.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-411. Employment of assistants

80-4-411. Employment of assistants.
The department is authorized to employ qualified persons not regularly in the service of the state for temporary assistance in carrying out the provisions of parts 4 through 7 of this chapter.
History: En. Sec. 11, Ch. 539, L. 1983.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-415. Creation of commodity dealer/public warehouse operators account -- deposit of funds

80-4-415. Creation of commodity dealer/public warehouse operators account -- deposit of funds.
(1) There is an account in the state special revenue fund. All revenue received under this chapter must be deposited in the account.
(2) Money received as revenue under this chapter that is not immediately required for the purposes of this chapter must be invested under the provisions of the unified investment program established in Title 17, chapter 6, part 2. All earned interest must be deposited in the account.
History: En. Sec. 16, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-416. Deposit of deficiency funds and liquidation funds

80-4-416. Deposit of deficiency funds and liquidation funds.
Revenue based on actual expenses received from the liquidation of commodity dealers and public warehouse operators, as authorized in 80-4-538 and 80-4-612, and from deficiency fees, authorized in 80-4-503, must be deposited in the account established in 80-4-415 and is statutorily appropriated, as provided in 17-7-502, to the department for the purposes of this chapter. Funds deposited under this chapter must be used to pay actual expenses incurred in the liquidation of commodity dealers and public warehouse operators or for the correction of storage deficiencies. Actual expenses include but are not limited to legal fees, court costs, travel expenses, per diem, and communication.
History: En. Sec. 17, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-419. Bankruptcy as grounds for cancellation

80-4-419. Bankruptcy as grounds for cancellation.
(1) If a commodity dealer files for bankruptcy, a contract or any part of a contract for delivery of a commodity may be canceled without penalty to the producer if the cancellation involves only the remaining unperformed portions of the contract. A cancellation under this section:
(a) is not a breach of contract;
(b) is allowed even if not explicitly provided for in the contract.
(2) In the event of a cancellation, a commodity dealer remains responsible for payment that is due to the producer for delivered portions of the contract.
History: En. Sec. 1, Ch. 247, L. 2013.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-420. Producer's lien

80-4-420. Producer's lien.
(1) Agricultural commodities contained on the premises of a public warehouse operator or commodity dealer, including agricultural commodities owned by the warehouse operator or commodity dealer, are subject to a first priority lien in favor of holders of outstanding warehouse receipts, purchase contracts, scale weight tickets, bailment contracts, or any other evidence of storage or sale.
(2) The lien must be preferred to a lien or security interest in favor of a creditor of the warehouse operator or commodity dealer regardless of the time when the creditor's lien or security interest attached to the agricultural commodities. Notice of the lien need not be filed in order to perfect the lien.
(3) The lien is discharged as to agricultural commodities sold by the warehouse operator or commodity dealer to a buyer in the ordinary course of business. The sale does not discharge the lien in favor of an individual holder of outstanding warehouse receipts, purchase contracts, scale weight tickets, bailment contracts, or other evidence of storage or sale on the remaining agricultural commodities on the premises.
History: En. Sec. 18, Ch. 452, L. 1993; amd. Sec. 1, Ch. 177, L. 2003.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-422. Delayed payment or purchase contracts

80-4-422. Delayed payment or purchase contracts.
(1) A commodity dealer who purchases agricultural commodities by purchase contract shall maintain books, records, and other documents as required by the department to establish compliance with the provisions of this section.
(2) In addition to other required information, a purchase contract must contain or provide for all of the following:
(a) the seller's and purchaser's name and address;
(b) the conditions of delivery;
(c) the amount and kind of agricultural commodities delivered;
(d) the price per unit or basis of value;
(e) the date payment is to be made; and
(f) a notice of financial risk involved in the delayed payment contract, in a form the department shall adopt pursuant to the rulemaking authority provided in 80-4-403.
(3) Title to all agricultural commodities sold by purchase contract is in the purchaser as of the time the agricultural commodities are delivered to and in physical control of the purchaser unless the contract provides otherwise. The contract must be signed by both parties and executed in duplicate. One copy must be retained by the commodity dealer, and one copy must be provided to the seller. Upon revocation, suspension, or termination of a commodity dealer's or warehouse operator's license, the department may advance the payment date for all delayed payment contracts to a date not later than 30 days following the effective date of the revocation, suspension, or termination. When not otherwise provided, the purchase price for all agricultural commodities must be determined as of the effective date of revocation, suspension, or termination in accordance with all other provisions of the contract. However, if the business of the commodity dealer is sold to another licensed commodity dealer, purchase contracts may be assigned to the purchasing commodity dealer.
(4) Any contract that does not satisfy the conditions imposed by this part is considered a sale other than a purchase contract and is subject to the provisions of 80-4-608.
History: En. Sec. 13, Ch. 539, L. 1983; amd. Sec. 1, Ch. 518, L. 1991; amd. Sec. 2, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-424. Director's authority -- investigative hearing

80-4-424. Director's authority -- investigative hearing.
The director may upon the director's own motion, whenever the director has reason to believe a violation has occurred or upon verified complaint of any person in writing, investigate the actions of any person and, if the director finds probable cause, shall notify the person that the person shall appear for an investigative hearing before the director 20 days from receipt of written notice.
History: En. Sec. 15, Ch. 539, L. 1983; amd. Sec. 2576, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-425. Action on bond by persons injured -- liability of surety -- statute of limitations

80-4-425. Action on bond by persons injured -- liability of surety -- statute of limitations.
(1) All claims against a bond must be made by and through the department. A person injured by the breach of an obligation for which a bond is given to the department may file a complaint with the department. The department shall then investigate the complaint and determine whether it is valid and whether there are any other outstanding obligations due. If the department finds that there are one or more valid obligations, the department shall make demand upon the warehouse operator or commodity dealer and the commodity dealer's surety for payment. If the payment is not made promptly, the department shall commence an action on the bond to enforce payment. If the department determines that a complaint is without merit, the department shall notify the complainant of that determination in writing. The complainant may then bring a contested case under Title 2, chapter 4, part 6, to the department for a determination of whether the department should pursue the claim against the bond.
(2) If two or more persons are injured by breach of the obligation for which the bond is given and the damages for violating the conditions of the bond exceed the specified amount of the bond, the recovery on the bond must be prorated by the surety among all of those injured.
(3) The liability of a surety under a bond extends to all obligations from commodity dealers' or public warehouse operators' transactions entered into during the year in which the bond was in effect, up to the maximum amount of the bond. Claims must be brought against the bond within 2 succeeding license years.
History: En. Sec. 16, Ch. 539, L. 1983; amd. Sec. 3, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-426. Duty to prosecute

80-4-426. Duty to prosecute.
(1) A county attorney who has appropriate jurisdiction and to whom any violation is reported shall cause appropriate proceedings to be instituted and prosecute without delay in a court of competent jurisdiction.
(2) In addition to or exclusive of the remedy in subsection (1), the department may seek a civil penalty for any violation of this part.
History: En. Sec. 17, Ch. 539, L. 1983; amd. Sec. 1, Ch. 79, L. 2019.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-427. Injunction

80-4-427. Injunction.
If a person without a license is found to have engaged in any business for which a license is required under parts 5 and 6 of this chapter, the court shall enjoin that person from further business until the person has been licensed. It is not necessary that the department show that an individual has been injured by the actions complained of in order to issue the injunction. The procedure for injunctive relief is the same as any other action for an injunction under Title 27. The department may, in its discretion, file the action in the first judicial district court. The injunction provided by this section is an additional remedy to the criminal or civil penalties provided for in 80-4-428.
History: En. Sec. 18, Ch. 539, L. 1983; amd. Sec. 141, Ch. 370, L. 1987; amd. Sec. 4, Ch. 452, L. 1993; amd. Sec. 2, Ch. 79, L. 2019.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-428. Penalty for operating without license -- misrepresentation

80-4-428. Penalty for operating without license -- misrepresentation.
(1) A person acting as a warehouse operator or a commodity dealer without a license or in any way representing by action or words that the person is a warehouse operator or a commodity dealer when not licensed violates the provisions of Title 80, chapter 4, parts 5 and 6, is guilty of a felony, and is punishable by imprisonment for not more than 10 years or by a fine of not more than $10,000, or both.
(2) A person who issues or aids in the issuance of a fraudulent receipt for any commodity is guilty of a felony and is punishable by imprisonment for not more than 10 years or by a fine of not more than $10,000, or both.
(3) A person who knowingly submits false information to or who knowingly withholds information from the department when that information is required to be submitted is guilty of a felony.
(4) (a) A person who violates any provision of this section is subject to an administrative civil penalty of not more than $100,000 for each transaction in violation.
(b) The department shall establish by rule a penalty matrix that schedules the types of penalties, the amounts for initial and subsequent offenses, and other matters necessary for the administration of civil penalties under this subsection (4). The issuance of a civil penalty is subject to the contested case procedures of Title 2, chapter 4, part 6. The department shall adopt the rules within 3 months of July 1, 2019. The department may not enforce penalties provided for in this section until the rules are adopted.
(c) Funds received in the form of civil penalties must be deposited in the general fund.
History: En. Sec. 19, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2577, Ch. 56, L. 2009; amd. Sec. 3, Ch. 79, L. 2019.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-429. Penalty

80-4-429. Penalty.
(1) Except as otherwise provided, a person who violates any provision of parts 4 through 7 of this chapter or rules promulgated under parts 4 through 7 or who impedes, obstructs, hinders, or otherwise prevents or attempts to prevent the director or an authorized representative in the performance of a duty under parts 4 through 7 of this chapter is guilty of a misdemeanor.
(2) A person who refuses to permit inspection of licensed premises, books, accounts, records, or other documents required by parts 4 through 7 of this chapter or who uses a scale weight ticket or purchase contract that fails to satisfy the requirements of parts 4 through 7 of this chapter is guilty of a misdemeanor.
(3) A person acting as a commodity dealer or warehouse operator who knowingly sells warehouse-receipted agricultural commodities that the person is not authorized to sell or who fails to pay for purchased agricultural commodities is guilty of a felony.
(4) A person exempted from licensure as a commodity dealer under the provisions of 80-4-402(5)(b)(vi) who fails to pay in full all amounts due to a producer for the sale of agricultural commodities is guilty of a felony and is also subject to any additional administrative penalty authorized by this chapter.
(5) A person is guilty of a felony if that person knowingly delivers to a commodity dealer or warehouse operator or upon the exercise of reasonable diligence should have known of the delivery to that person of an agricultural commodity that contains:
(a) a nitrogen fertilizer added to harvested grain;
(b) a poisonous, deleterious, or other substance not registered or approved by federal or state statutes, regulations, or rules; or
(c) a registered or approved substance that has not been used or applied according to label directions or other government standards.
(6) (a) A person who violates any provision of this section is subject to an administrative civil penalty of not more than $100,000 for each transaction in violation.
(b) The department shall establish by rule a penalty matrix that schedules the types of penalties, the amounts for initial and subsequent offenses, and other matters necessary for the administration of civil penalties under this subsection (6). The issuance of a civil penalty is subject to the contested case procedures of Title 2, chapter 4, part 6. The department shall adopt the rules within 3 months of July 1, 2019. The department may not enforce penalties provided for in this section until the rules are adopted.
(c) Funds received in the form of civil penalties must be deposited in the general fund.
History: En. Sec. 20, Ch. 539, L. 1983; amd. Sec. 2, Ch. 299, L. 1991; amd. Sec. 5, Ch. 452, L. 1993; amd. Sec. 2, Ch. 337, L. 1995; amd. Sec. 6, Ch. 76, L. 1997; amd. Sec. 2, Ch. 168, L. 2001; amd. Sec. 4, Ch. 79, L. 2019.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 4. Agricultural Commodities Generally › 80-4-430. Director's enforcement action

80-4-430. Director's enforcement action.
Title 80, chapter 4, parts 4 through 7, may not be construed to require the director or the director's authorized representative to report for prosecution or for the institution of civil action a violation if the director or the representative believes that the public interest will best be served by a suitable warning.
History: En. Sec. 21, Ch. 539, L. 1983; amd. Sec. 2578, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-501. License necessary to operate public warehouse

80-4-501. License necessary to operate public warehouse.
(1) A person may not act as a warehouse operator without first having obtained an annual license from the department. This requirement and other requirements in parts 4 through 6 that regulate the activities of a warehouse operator do not apply to operators of warehouses that are federally licensed under the United States Warehouse Act. However, if a federally licensed warehouse operator engages in business as a commodity dealer, the provisions of parts 4 through 7 apply to the commodity dealer activity.
(2) If a warehouse operator operates two or more warehouses in the same city or immediately adjacent to the city or in the same immediate area, in conjunction with each other and with the same workforce, if one set of books and records is kept for all the warehouses, cash slips, scale weight tickets, and warehouse receipts, and if checks of one series are used for agricultural commodities stored in the warehouse, only one warehouse operator's license is required for the operation of all the warehouses.
History: En. Sec. 22, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 7, Ch. 76, L. 1997.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-502. Licenses to warehouse operator -- issuance -- renewal -- conditions precedent

80-4-502. Licenses to warehouse operator -- issuance -- renewal -- conditions precedent.
(1) The department is authorized to issue or renew, upon application, a license to any warehouse operator for the conduct of a warehouse or warehouses in accordance with parts 5 and 6 of this chapter, provided the following conditions are met:
(a) Each applicant shall file and maintain satisfactory evidence of an effective policy of insurance issued by an insurance company authorized to do business in this state, insuring all agricultural commodities that are stored in the warehouse, including agricultural commodities owned by the warehouse operator. The insurance must insure the commodities for the full market value at the time of loss of the commodities against loss by fire, internal explosion, lightning, or tornado.
(b) Each warehouse must be found suitable for the proper storage of the particular agricultural commodity stored in the warehouse.
(c) A license fee must be submitted to the department as prescribed by 80-4-503.
(d) A current drawing of the warehouse, showing storage facilities and capacity of the warehouse, must be submitted to the department.
(e) A sufficient and valid bond must be filed and maintained as required by 80-4-504 and 80-4-505.
(f) (i) Except as provided in subsection (1)(f)(ii), the applicant has submitted to the department a current financial statement prepared by a certified public accountant according to generally accepted accounting principles, showing that the applicant has and maintains positive working capital.
(ii) An applicant without positive working capital may provide the department with additional bonding, or an equivalent in the form of a certificate of deposit or irrevocable letter of credit, in the amount of $2,000 for each $1,000 of deficit. The bond or equivalent required in this subsection (1)(f)(ii) is in addition to the bond amount required in 80-4-505.
(g) The applicant must submit a sample warehouse receipt and subsequent revisions to the department for approval and filing.
(h) The applicant must have complied with the terms of this part and the rules prescribed thereunder.
(2) All documents required for renewal of a license must be received by the department prior to the expiration date of the warehouse license. An expired warehouse license may be reinstated by the department upon receipt of all required licensing documents and a penalty fee of $50 if the documents are filed within 30 days from the date of expiration of the warehouse license. All license applications received after the 30-day penalty period must be considered original applications and an initial license fee must be assessed according to 80-4-503.
History: En. Sec. 23, Ch. 539, L. 1983; amd. Sec. 1, Ch. 157, L. 1989; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 4, Ch. 175, L. 2011; amd. Sec. 22, Ch. 169, L. 2015.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-503. Fees of department

80-4-503. Fees of department.
(1) The department shall collect an annual warehouse operator license fee of $232 for each warehouse owned or operated by the warehouse operator.
(2) If, after evaluation of the commodity dealer/public warehouse operator program, the department determines that revenue from license fees is inadequate to accomplish the purposes of this chapter, the department may by rule increase the license fees, but the fee may not exceed $500 for a facility.
(3) The department shall collect a fee of $150 a day or fraction of a day for maintaining an employee of the department at a warehouse to supervise the correction of a deficiency.
(4) All license fees collected under subsection (1) and deficiency fees collected under subsection (3) must be deposited into the commodity dealer/public warehouse operators account.
History: En. Sec. 24, Ch. 539, L. 1983; amd. Sec. 4, Ch. 620, L. 1987; amd. Sec. 6, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-504. Bond of applicant for license -- additional bond -- additional obligations

80-4-504. Bond of applicant for license -- additional bond -- additional obligations.
(1) Each applicant for a warehouse operator's license shall file a bond or its equivalent, as established by department rule, with the department. The bond must be in the form and must contain the terms and conditions that the department may prescribe by rule to carry out the purpose of 80-4-505 and this section.
(2) The department may demand an additional bond if the nature or volume of the business conducted by the warehouse operator warrants an increase.
(3) The warehouse operator may give a single bond to cover all warehouses operated by the operator.
(4) Any changes in the capacity of a warehouse or installation of any new warehouse involving a change in the bond liability under 80-4-505 must be reported in writing to the director, and an appropriate bond must be filed prior to the operation of the warehouse or installation.
History: En. Sec. 25, Ch. 539, L. 1983; amd. Sec. 2, Ch. 578, L. 1985; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2579, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-505. Amount of bond -- cancellation

80-4-505. Amount of bond -- cancellation.
(1) The amount of the bond to be furnished for each warehouse must be fixed at a rate of 20 cents per hundredweight for the first 500,000 hundredweight of licensed capacity; 15 cents per hundredweight for the next 500,000 hundredweight of licensed capacity; and 10 cents per hundredweight for all licensed capacity over 1 million hundredweight. The amount of the bond may not be less than $20,000 or more than the maximum prescribed in 80-4-405. The licensed capacity is the maximum number of hundredweight of agricultural commodities that the warehouse can accommodate.
(2) If a warehouse operator is also operating as a commodity dealer, the warehouse operator shall also provide a bond as prescribed in 80-4-604.
(3) If a deficiency occurs in the equity required under 80-4-506, there must be added to the amount of bond determined in accordance with subsection (1) an amount equal to that deficiency.
(4) Each warehouse operator bond runs continuously with the license until canceled by the bonding company.
(5) A 60-day written notice must be given to the department by the bonding company before any bond is canceled; however, the cancellation does not terminate any liability of the surety incurred prior to the date of cancellation.
History: En. Sec. 26, Ch. 539, L. 1983; amd. Sec. 3, Ch. 578, L. 1985; amd. Sec. 7, Ch. 452, L. 1993; amd. Sec. 5, Ch. 175, L. 2011.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-506. Equity requirements

80-4-506. Equity requirements.
(1) Each licensee or applicant for a license shall maintain, above all exemptions and liabilities, total equity liable for the payment of any indebtedness arising from the conduct of the warehouse or warehouses of at least 40 cents per hundredweight of all agricultural commodities that the licensee's or applicant's warehouse or warehouses can accommodate.
(2) A person may not be licensed as a warehouse operator unless the person has and maintains allowable positive equity.
(3) Assets must be valued at original cost less depreciation, except that upon written request filed with the department, the director may allow asset valuations in accordance with a competent appraisal.
(4) In determining total equity, credit may be given for insurable property, such as buildings, machinery, equipment, and merchandise inventory, only to the extent that the property is protected by insurance against loss or damage by fire. The insurance must be in the form of lawful policies issued by one or more insurance companies authorized to do business and subject to service of process in suits brought in this state.
(5) If a warehouse operator is licensed or applies for licenses to operate two or more warehouses, the maximum number of hundredweight that all warehouses will accommodate must be considered in determining whether the warehouse operator meets the equity requirements specified in this section.
History: En. Sec. 27, Ch. 539, L. 1983; amd. Sec. 4, Ch. 578, L. 1985; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2580, Ch. 56, L. 2009; amd. Sec. 6, Ch. 175, L. 2011.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-521. Duties of warehouse operator -- content of records

80-4-521. Duties of warehouse operator -- content of records.
(1) Each warehouse operator shall maintain in a safe place current and complete records at all times with respect to all agricultural commodities stored, conditioned, handled, or shipped by the operator, including agricultural commodities owned by the operator. The records must include but are not limited to a daily position record, showing the total quantity of each kind and class of agricultural commodity received and loaded out and the amount remaining in storage at the close of each business day and the warehouse operator's total storage obligations for each kind and class of agricultural commodity at the close of each business day.
(2) Each warehouse operator purchasing any agricultural commodity from a depositor shall promptly make and keep for 5 years a correct record showing in detail the following information:
(a) the name and address of the depositor;
(b) the date purchased;
(c) the terms of the sale; and
(d) the quality and quantity purchased by the warehouse operator and, when applicable, the dockage, tare, grade, size, and net weight.
History: En. Sec. 28, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2581, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-522. Schedule of charges -- posting

80-4-522. Schedule of charges -- posting.
(1) Before a license to conduct a warehouse is granted, the warehouse operator shall file with the director a copy of the schedule of charges for storage and other services. The schedule must be posted in a conspicuous place in the warehouse.
(2) All charges made by a warehouse operator for the handling and storage of agricultural commodities must be just and reasonable. However, the director may, upon the complaint of any person or upon the director's own motion, hold a public hearing and may declare any existing charges for handling or storage of any agricultural commodity to be unreasonable or unjust. After the hearing, the director shall determine and order what is a just and reasonable charge to be imposed or enforced in place of that found to be unreasonable or unjust.
(3) Failure to file and post scheduled charges for the current year will keep in full force the most recently posted and filed schedule rates.
(4) In all cases, the producers must receive the first 15 days of storage without charge.
History: En. Sec. 29, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2582, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-523. Required receipt of agricultural commodities according to capacity

80-4-523. Required receipt of agricultural commodities according to capacity.
A warehouse operator must receive for storage, conditioning, handling, or shipment without discrimination of any kind, so far as the capacity of the operator's warehouse will permit, all agricultural commodities tendered to the operator in the usual course of business in suitable condition for storage. However, a warehouse operator may not be compelled to accept and hold agricultural commodities for storage in quantities that block the operator's regular cash agricultural commodity business. A warehouse operator may not be required to accept agricultural commodities for storage in excess of working capacity. However, the operator's appointment of space may be modified by rule upon proof that the appointment operates to the disadvantage of either the public or the warehouse operator.
History: En. Sec. 30, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2583, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-524. Discrimination in charge by warehouse operator prohibited

80-4-524. Discrimination in charge by warehouse operator prohibited.
A warehouse operator may not directly or indirectly, by a special charge, rebate, drawback, or other device, collect from any person a greater or lesser compensation for any service rendered in the storage, conditioning, handling, or shipment of agricultural commodities than the operator collects from any other person for a similar circumstance or condition. A warehouse operator may not make or give any advantage to any person, company, or corporation or subject any person, company, or corporation to any undue or unreasonable prejudice or disadvantage.
History: En. Sec. 31, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2584, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-525. Scale weight tickets -- form -- issuance

80-4-525. Scale weight tickets -- form -- issuance.
(1) Scale weight tickets must be bound in books of convenient size and must be numbered consecutively. The original scale weight ticket must be delivered to the person from whom the agricultural commodities are received. One carbon copy of each scale weight ticket must remain as a permanent record.
(2) A scale weight ticket must be issued for each load of agricultural commodity received by the warehouse operator.
(3) A scale weight ticket may not be issued or held in lieu of a warehouse receipt. However, an agricultural commodity under scale weight ticket is considered warehoused liability, and title remains with the depositor until:
(a) the agricultural commodity is sold under a purchase contract;
(b) the agricultural commodity is paid for under 80-4-608; or
(c) a warehouse receipt is issued.
(4) There must be plainly printed across the face of the scale weight ticket issued by the warehouse operator, in bold type, the words "THIS IS NOT A WAREHOUSE RECEIPT. IT MUST BE EXCHANGED FOR A WAREHOUSE RECEIPT IF GRAIN IS HELD IN STORAGE".
(5) All scale weight tickets must be signed by the warehouse operator or the warehouse operator's agent.
(6) All scale weight tickets must be converted into cash or warehouse receipts on demand.
History: En. Sec. 32, Ch. 539, L. 1983; amd. Sec. 3, Ch. 299, L. 1991; amd. Sec. 8, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-526. Warehouse receipts -- written terms

80-4-526. Warehouse receipts -- written terms.
(1) Warehouse receipts under this part must contain in written terms:
(a) a statement that the warehouse is operated under a license issued by the department;
(b) a statement showing whether it is an original, duplicate, triplicate, or other copy;
(c) a statement showing the name of the warehouse;
(d) a statement showing the name of the city or town where the warehouse is located;
(e) the date the warehouse receipt is issued;
(f) the number of the warehouse receipt. All receipts must be numbered consecutively.
(g) a statement that the grain is "received in store" from the person named;
(h) a statement of gross weight, dockage, and net weight and the sample report used for grade and protein analysis;
(i) a statement of encumbrances, such as cash or other advances;
(j) a statement that, upon the return of the receipt properly endorsed by the person to whom the order was issued and the payment of the proper charges for storing and handling, delivery will be made in accordance with this part;
(k) a statement that the grain is properly insured for the benefit of the owner; and
(l) the name of the manager or agent of the warehouse.
(2) The face of the warehouse receipt may also provide for other statements, such as:
(a) the scale weight ticket numbers or the assembly sheet number;
(b) the grade; and
(c) the protein certificate used.
(3) The back of the warehouse receipt may include printed statements, such as:
(a) delivery provisions;
(b) actual-delivery-of-grain provisions;
(c) bailment provisions provided for in Title 30, chapter 7, part 2, that do not conflict with this part;
(d) act-of-God provisions;
(e) nonnegotiable provisions; and
(f) endorsements and other statements pertinent to bookkeeping data whenever the statements do not conflict with any state or federal law pertaining to public warehousing or the grading or testing of grain.
(4) A copy of the warehouse receipt issued by the warehouse operator must accompany each application for a warehouse operator's license.
History: En. Sec. 33, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 3, Ch. 168, L. 2001.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-528. Penalty for unlawful issue of warehouse receipts

80-4-528. Penalty for unlawful issue of warehouse receipts.
A person violating any of the provisions of 80-4-527 or a designated employee knowingly permitting any agricultural commodity to be delivered contrary to the provisions of 80-4-527 is guilty of a misdemeanor and punishable as provided in 80-4-429.
History: En. Sec. 35, Ch. 539, L. 1983.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-529. Partial withdrawal of agricultural commodities -- adjustment or substitution of receipt -- duties of warehouse operator

80-4-529. Partial withdrawal of agricultural commodities -- adjustment or substitution of receipt -- duties of warehouse operator.
When partial withdrawal of a depositor's agricultural commodity is made by a depositor, the warehouse operator shall make an appropriate notation on the depositor's warehouse receipt or claim or shall cancel and replace it with a warehouse receipt showing the amount of the depositor's agricultural commodity remaining in the warehouse. The warehouse operator is liable for the redelivery of all agricultural commodities specified on all outstanding warehouse receipts.
History: En. Sec. 36, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2585, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-530. Shipment of stored grain to terminal grain warehouse outside state

80-4-530. Shipment of stored grain to terminal grain warehouse outside state.
(1) Warehouse receipts or signed agreements from the owners of grain, on a form approved by the department and in an amount equal to the number of bushels the warehouse operator has in a terminal grain warehouse outside the state, are required for all grain shipped out of state by a warehouse operator.
(2) Warehouse receipts covering grain in terminal grain warehouses outside the state must have the words "Owner waives redelivery at point of origin of grain represented by this receipt" printed or stamped on the back.
(3) Waivers or agreements to accept terminal warehouse receipts must be signed in triplicate by the owner of the grain or the owner's agent and by an authorized representative of the warehouse, with:
(a) the original to be mailed to the department;
(b) the duplicate copy to be retained by the warehouse operator; and
(c) the triplicate copy to be given to the holder of the warehouse receipt.
(4) All grain must be held in bonded and approved terminal warehouses, fully insured for the benefit of the holder of Montana warehouse receipts.
(5) Grain held in terminal warehouses is not subject to any lien, mortgage, or encumbrance.
History: En. Sec. 37, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2586, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-532. Delivery of grain from different warehouse

80-4-532. Delivery of grain from different warehouse.
(1) Any warehouse operator owning or operating more than one warehouse in this state may deliver grain from one warehouse in settlement of warehouse receipts issued for grain stored in another warehouse when grain for storage has been presented at any warehouse in excess of its available storage capacity.
(2) Nothing in subsection (1) confers upon the warehouse operator a right to make delivery of grain of substantially lower value than that delivered for storage, though of the same technical grade, in settlement of warehouse receipts.
(3) The warehouse operator shall at all times keep on hand in bonded warehouses grain of sufficient quality and quantity to settle all outstanding warehouse receipts.
(4) Freight and other charges must be determined at the point of receipt.
History: En. Sec. 39, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-533. Loss of receipts -- conditions of reissue

80-4-533. Loss of receipts -- conditions of reissue.
While an original warehouse receipt is outstanding and uncanceled by the issuing warehouse operator, no other or further receipt may be issued for the agricultural commodity or any part of it covered thereby. However, if a warehouse receipt is lost or destroyed, a new receipt may be issued upon giving satisfactory security in compliance with rules adopted by the department. The new receipt must contain the same terms and conditions and must bear on its face the number and date of the receipt in lieu of which it is issued.
History: En. Sec. 40, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-534. Cancellation of insurance -- suspension of license

80-4-534. Cancellation of insurance -- suspension of license.
Upon cancellation of any policy of insurance required by 80-4-502 and 80-4-506, the insurance company involved shall give 30 days' advance notice to the department by certified mail, return receipt requested, of cancellation of the policy. If the policy is canceled, the department shall immediately suspend the license of such uninsured warehouse operator without a hearing, pursuant to the Montana Administrative Procedure Act. The suspension may not be removed until satisfactory evidence of the existence of an effective policy of insurance complying with the requirements of 80-4-502 and 80-4-506 has been submitted to the department or until further order by the department or a court of competent jurisdiction.
History: En. Sec. 41, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-536. Termination of storage contract -- sale of agricultural commodities for charges -- notice required

80-4-536. Termination of storage contract -- sale of agricultural commodities for charges -- notice required.
(1) Storage of agricultural commodities may be terminated by the depositor at any time by the payment or tender of all legal charges and the surrender of the warehouse receipt, together with a demand for delivery of the agricultural commodities or a notice to the warehouse operator to sell the commodities.
(2) In the absence of a demand for delivery, order to sell, or mutual agreement for the renewal of the storage contract entered into prior to the expiration of the storage contract, the warehouse operator may, upon the expiration of the storage contract, sell so much of the stored agricultural commodities at the local market price at the close of business on that day as is sufficient to pay the accrued storage charges. The warehouse operator shall then issue new warehouse receipts for the balance of the agricultural commodity to the depositor upon the depositor's surrender of the original warehouse receipts. If the warehouse receipt is not returned, the warehouse operator may apply for an encumbrance to the grain settlement records for outstanding storage in lieu of reissuance of the warehouse receipt subject to the provisions of subsection (3). The warehouse operator shall notify all warehouse receipt holders who are subject to the provisions of subsection (3) of the provisions of this section 30 days prior to the end of the license year.
(3) All storage contracts on agricultural commodities evidenced by a warehouse receipt must be terminated within 3 license years. The termination date for those storage contracts must be calculated by considering the license year during which the contract was issued as the first license year, plus 2 additional license years, for a total of 3 license years.
History: En. Sec. 43, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 8, Ch. 76, L. 1997.
2023 Montana Code Annotated › Title 80. Agriculture › Chapter 4. Agricultural Commodities › Part 5. Agricultural Commodity Warehouse Operators › 80-4-537. Examination of stored agricultural commodities

80-4-537. Examination of stored agricultural commodities.
A department inspector may examine at any reasonable time during ordinary business hours any stored agricultural commodity and all parts of any warehouse if the warehouse or the agricultural commodities stored in the warehouse are not endangered by the inspections. Each warehouse operator or the operator's agent shall furnish safe and reasonable access to facilities for the examination.
History: En. Sec. 44, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2587, Ch. 56, L. 2009.