reglab/statecodes huggingface dataset:
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter D. Bonding › Section 14.035. Cancellation of Certificate of Deposit or Cash

Sec. 14.035.  CANCELLATION OF CERTIFICATE OF DEPOSIT OR CASH.  (a)  A warehouse operator may not repossess a certificate of deposit or cash approved by and deposited with the department in lieu of a bond unless:
(1)  the department gives written approval of a substitute bond or letter of credit;  and
(2)  at least two years have passed after the expiration of the last licensing period during which the certificate of deposit or cash was deposited with the department in lieu of a bond.
(b)  Notwithstanding any other provision of this chapter, the department may not release a certificate of deposit or cash deposited with the department while a claim filed within the applicable limitations period established under Section 14.065 is pending before the department or a court.
(c)  A warehouse operator may, on written request to the department, recover cash or a certificate of deposit from the department before the expiration of the two-year period specified in Subsection (a)(2) if:
(1)  the department performs a closeout inspection;
(2)  the department determines on the best available evidence that no outstanding obligations exist at the time of the closeout inspection;
(3)  the warehouse operator submits with the written request a bond:
(A)  in an amount equal to six cents per bushel for 50 percent of the total storage capacity of the facility or combination covered by the cash or certificate of deposit the warehouse operator is attempting to recover;  and
(B)  covering any failure of obligation that may have occurred during all licensing periods covered by the cash or certificate of deposit the warehouse operator is attempting to recover;  and
(4)  at least 30 days have passed since the closeout inspection.
(d)  A claim against the bond required by Subsection (c) must be filed with the department or in a court of competent jurisdiction not later than the second anniversary of the date of the closeout inspection.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter E. Insurance › Section 14.041. Casualty Insurance

Sec. 14.041.  CASUALTY INSURANCE.  (a)  Except as provided by Subsections (c) and (d), an applicant for a license must file or have on file with the department a certificate of insurance evidencing that:
(1)  the applicant has an effective policy of insurance issued by an insurance company authorized to do business in this state or, with the approval of the department, by an eligible surplus lines insurer that meets the requirements of Chapter 981, Insurance Code, and rules adopted by the commissioner of insurance under that chapter;  and
(2)  the policy insures, in the name of the applicant, all depositor grain that is or may be in the public grain warehouse for its full market value against loss by or due to water or other fluid resulting from an insured peril, excluding flood and other rising waters resulting from natural causes, malicious mischief, vandalism, smoke, fire, internal explosion, lightning, hail, windstorm, hurricane, or tornado.
(b)  If water or other fluid resulting from an insured peril, excluding flood and other rising waters resulting from natural causes, malicious mischief, vandalism, smoke, fire, internal explosion, lightning, hail, windstorm, hurricane, or tornado destroys or damages grain in a public grain warehouse, the warehouse operator shall, on demand by the depositor and presentation of a receipt or other evidence of ownership, make settlement with the depositor of the grain.  The amount of the settlement shall be the average price paid for grain of the same grade and quality on the date of the loss at the location of the warehouse, minus the warehouse operator's charges and advances.  If a settlement is not made before the 31st day following the date of demand, the depositor is entitled to seek recovery from the insurance company.
(c)  An applicant is not required to file a certificate of insurance if the applicant certifies in writing, at or before the time the certificate of insurance is due, that all grain within the warehouse at the time the license is to be effective is or will be owned by the applicant free of any lien.  The applicant shall file the required certificate of insurance on or before the first day any grain not owned by the applicant free of any lien is stored for hire, handled for hire, or shipped for hire.
(d)  An applicant for a license shall insure depositor grain for its full market value against loss by or due to fire or windstorm if the grain is in temporary or emergency storage.  The certificate required under Subsection (a) must evidence that the applicant has an effective policy of insurance under this subsection before the applicant may store depositor grain in temporary or emergency storage.
Renumbered from Sec. 14.011 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001;  Acts 2003, 78th Leg., ch. 196, Sec. 2, eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 1276, Sec. 10A.505, eff. Sept. 1, 2003.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter E. Insurance › Section 14.042. Insurance Cancellation

Sec. 14.042.  INSURANCE CANCELLATION.  (a)  A warehouse operator may not cancel an insurance policy approved by the department unless the department gives written approval of a substitute policy.
(b)  The insurer may cancel an insurance policy by sending notice of intent to cancel by registered or certified mail to the department.  Cancellation of an insurance policy is not effective before the 31st day following the date the insurer mails notice of intent to cancel.  On receipt of notice of cancellation of an insurance policy, the department shall promptly notify the warehouse operator involved.
(c)  The insurer shall send a copy of the notice required by this section to any government agency requesting the copy.
(d)  Notwithstanding any other provision of this chapter, a public grain warehouse license is automatically suspended if the warehouse operator fails to file a new certificate of insurance before the cancellation of an insurance policy is effective or fails to provide a certification of ownership under Section 14.041(c).
(e)  The suspension of a license under this section continues as long as the warehouse operator fails to maintain the insurance required by this chapter.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter E. Insurance › Section 14.043. Additional Insurance

Sec. 14.043.  ADDITIONAL INSURANCE.  (a)  If the department determines that an approved insurance policy is insufficient, the department shall require the warehouse operator to obtain additional insurance.
(b)  If a license has been suspended or revoked or has expired, the department may require continued insurance coverage by the warehouse operator to protect depositors of grain for as long as any receipts or open storage accounts remain outstanding.
(c)  The warehouse operator shall obtain the additional insurance required by this section and provide verification of the additional insurance within a time specified by the department, and the additional insurance shall be maintained or continued as necessary to meet the requirements of this chapter.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.051. Posting of License

Sec. 14.051.  POSTING OF LICENSE.  Each warehouse operator shall immediately on receipt of a license post the original in a conspicuous place at the primary recordkeeping location for the individually licensed facility or combination.  A copy of the license must be conspicuously posted at each facility where grain is stored for hire, handled for hire, or shipped for hire.
Renumbered from Sec. 14.008 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.052. Warehouse Operator Obligations

Sec. 14.052.  WAREHOUSE OPERATOR OBLIGATIONS.  (a)  The obligations of a warehouse operator include the obligation to:
(1)  deliver grain to a person holding a receipt for grain stored in the warehouse;  and
(2)  maintain the quantity and quality of all grain not owned by the warehouse operator, including open storage grain.
(b)  Except as otherwise provided by this chapter or by department rule, the obligation of a warehouse operator to deliver grain to a person holding a receipt for grain stored in the public grain warehouse is controlled by Section 7.403, Business & Commerce Code.
(c)  If a warehouse operator accepts for storage, shipping, handling, purchase, or sale any grain that is nonfungible or for which identity must be preserved, the warehouse operator shall safeguard the grain from intermingling with grain that would impair or destroy the identity-preserved or nonfungible nature of the grain.  Nothing in this section requires the warehouse operator to accept grain that is nonfungible or that requires identity preservation.
(d)  The warehouse operator remains liable for the quality and quantity of grain deposited at the warehouse and for any other obligations established under this chapter for any period during which the warehouse has been sealed or during any period of probation, suspension, or revocation imposed under this chapter or for grain abandoned by the warehouse operator unless:
(1)  the warehouse operator makes a written request to the department for access to the warehouse;
(2)  the request adequately describes why access is necessary to meet the warehouse operator's obligations under this chapter;
(3)  the request adequately describes what type of access is necessary to meet the warehouse operator's obligations under this chapter;
(4)  the request for access is reasonable;
(5)  allowing access would not impair the department's ability to preserve evidence, warehouse operator records, or depositor grain assets;  and
(6)  the request is denied by the department or the department imposes unreasonable restrictions that prevent the operator from meeting the obligations described in the request.
(e)  The department is entitled, on behalf of depositors, to recover from the warehouse operator's bond the cost of damages suffered by depositors as a result of sealing the warehouse or as a result of the warehouse operator abandoning the warehouse and the grain contained in the warehouse.
Acts 1981, 67th Leg., p. 1052, ch. 388, Sec. 1, eff. Sept. 1, 1981;  Acts 1993, 73rd Leg., ch. 553, Sec. 2, eff. Sept. 1, 1993.  Renumbered from Sec. 14.0091, 14.021 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.053. Receipt Forms

Sec. 14.053.  RECEIPT FORMS.  (a)  A warehouse operator shall use one set of serially numbered and sequentially issued receipts for all warehouses operated under a single license.  In addition to a unique serial number, each receipt form must contain all of the information prescribed by department rule.  If further provided by department rule, the warehouse operator shall request the receipt forms from the printer on a form approved, prescribed, or furnished by the department.
(b)  The warehouse operator shall provide the department with an exemplar of the receipt forms and an affidavit from the printer showing the number of receipts printed and their serial numbers before issuing any receipt from the printed set.  The exemplar and affidavit required by this subsection shall be provided each time a new set of receipts is printed.
(c)  The warehouse operator may use an electronic receipt system if the provider of the electronic receipt system has been approved by the department or by the United States Department of Agriculture or any other federal agency that issues a license for the operation of a public grain warehouse.
(d)  The department may require a warehouse operator to provide a bond to cover any loss resulting from unlawful use of a receipt. The department shall determine the form and the amount of the bond, but the amount may not exceed $5,000.
Renumbered from Sec. 14.020 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.054. Issuance of Scale Weight Ticket or Receipt

Sec. 14.054.  ISSUANCE OF SCALE WEIGHT TICKET OR RECEIPT.  (a)  On receiving grain, a warehouse operator shall issue to the person delivering the grain a serially numbered scale weight ticket in a form approved by the department.
(b)  On application of a depositor, the warehouse operator shall issue to the depositor a Texas grain warehouse receipt, which must be:
(1)  in a form prescribed by the department;  and
(2)  in conformity with Chapter 7, Business & Commerce Code.
(c)  A Texas grain warehouse receipt issued under this subchapter is subject to the provisions of Chapter 7, Business & Commerce Code.
(d)  A Texas grain warehouse receipt is a negotiable document of title.  A scale weight ticket is not a negotiable document of title.
(e)  Except as provided by Section 14.055 for duplicate receipts, a warehouse operator may not issue two scale weight tickets or two receipts bearing the same number during any calendar year.
(f)  Unless previously canceled in accordance with the provisions of Chapter 7, Business & Commerce Code, a Texas grain warehouse receipt issued under this chapter expires 10 years after the date of issuance.
Renumbered from Sec. 14.017 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.055. Duplicate Receipts

Sec. 14.055.  DUPLICATE RECEIPTS.  (a)  Except as otherwise provided by this section, if a receipt issued under this chapter is outstanding, another receipt covering all or part of the grain covered by the initial receipt may not be issued by the warehouse operator or any other person.  If a receipt is lost, stolen, or destroyed, the owner is entitled to a new receipt as a duplicate or substitute for the missing receipt.  The duplicate or substitute receipt has the same legal effect as the original receipt and must:
(1)  state that it is in lieu of the original receipt;  and
(2)  bear the number and date of the original receipt.
(b)  Before issuing a duplicate receipt, the warehouse operator shall require from the owner an indemnity bond of double the market value of the grain covered by the missing receipt.  The bond must be in a form and with a surety prescribed by the department to fully protect all rights under the missing receipt.
(c)  A warehouse operator may not obtain, purchase, or become a surety on a bond for a lost, stolen, or destroyed receipt.
(d)  A court may not order delivery of grain covered by a lost, stolen, or destroyed receipt without requiring the bond provided by this section.
Renumbered from Sec. 14.019 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.056. Receipt for Grain Owned by Warehouse Operator

Sec. 14.056.  RECEIPT FOR GRAIN OWNED BY WAREHOUSE OPERATOR.  A warehouse operator may issue a receipt for grain that is owned by the warehouse operator, in whole or part, and located in the warehouse operator's warehouse.  The negotiation, transfer, sale, or pledge of that receipt may not be defeated because of its ownership.
Renumbered from Sec. 14.018 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.057. Records

Sec. 14.057.  RECORDS.  (a)  Every warehouse operator shall keep in a safe place complete and correct records and accounts pertaining to the public grain warehouse, including records and accounts of:
(1)  grain received and withdrawn from the warehouse;
(2)  unissued receipts in the warehouse operator's possession;
(3)  receipts and scale weight tickets issued by the warehouse operator;  and
(4)  receipts returned to and canceled by the warehouse operator.
(b)  The warehouse operator shall retain the records required by this section for the period of time prescribed by the department.  The warehouse operator shall retain copies of receipts or other documents evidencing ownership of grain or liability of a warehouse operator as long as the documents are outstanding.  If the documents are canceled, the warehouse operator shall retain the documents or receipts for a period of not less than two years from the date of cancellation.
(c)  The warehouse operator shall:
(1)  clearly mark all canceled receipts "canceled" and mark on the face of each receipt the date of the cancellation;
(2)  keep records and accounts required by this section separate from the records and accounts of other businesses;
(3)  issue in numerical order all scale weight tickets and receipts;  and
(4)  keep in numerical order copies of the scale weight tickets and receipts issued by the warehouse operator.
(d)  In records kept under this section, grain may be designated as company-owned grain only if:
(1)  the grain has been paid for and is wholly owned by the warehouse operator;  or
(2)  the ownership of the grain has been transferred to the warehouse operator under a written contract of purchase.
(e)  The warehouse operator shall report to the department on forms furnished by the department the following information on scale weight tickets used in the warehouse operator's business:
(1)  the number of scale weight tickets printed;
(2)  the serial numbers of the scale weight tickets printed;  and
(3)  the printer of the scale weight tickets.
(f)  The warehouse operator shall make any records required by this section or department rule accessible and available for inspection by the department at any reasonable time.
Renumbered from Sec. 14.022 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.058. Posting of Storage Rates or Tariffs

Sec. 14.058.  POSTING OF STORAGE RATES OR TARIFFS.  (a)  A public grain warehouse licensed under this chapter shall post a copy of all storage rates and tariffs charged by the warehouse operator at the main warehouse office and at each warehouse facility operating under the license.
(b)  The warehouse operator shall post any change to the posted storage rates or tariffs not later than the third day before the day on which the change is to take effect.
(c)  Department inspectors shall check compliance with this section during inspections of a public grain warehouse under this chapter.
Renumbered from Sec. 14.036 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter F. Warehouse Operator Obligations › Section 14.059. Inspections; Fee

Sec. 14.059.  INSPECTIONS;  FEE.  (a)  On request by the department, a warehouse operator shall report to the department on the condition, operation, and business of each public grain warehouse that the warehouse operator operates and all grain stored in those warehouses.
(b)   The department shall inspect each public grain warehouse at least once annually and may make additional inspections as the department considers necessary.  A warehouse operator may request that the department make additional inspections.
(c)  The department shall collect from the warehouse operator whose public grain warehouse is inspected an inspection fee for an annual inspection or an inspection requested by the warehouse operator, but may not collect an inspection fee for other inspections unless the inspection is conducted:
(1)  under the terms of an agreed or ordered suspension or probation;
(2)  in response to a complaint that the warehouse operator has not complied with the duties and obligations provided for by this chapter and the complaint is determined by the department to be valid;
(3)  as a follow-up inspection to:
(A)  determine whether a shortage of grain discovered by the department has been corrected;
(B)  obtain records not immediately available at the location designated as the recordkeeping location in department records or to which access was refused during a previous inspection;
(C)  ensure that recordkeeping discrepancies discovered during a previous inspection have been corrected;  or
(D)  monitor a suspension or probation under this chapter;  or
(4)  to monitor termination of arrangements for storing, shipping, or handling of grain under this chapter.
(d)  The department by rule shall set the inspection fee.
Amended by Acts 1995, 74th Leg., ch. 419, Sec. 2.12, eff. Sept. 1, 1995.  Renumbered from Sec. 14.014 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter G. Remedies and Claims › Section 14.061. Warehouse Receipt as Prima Facie Evidence

Sec. 14.061.  WAREHOUSE RECEIPT AS PRIMA FACIE EVIDENCE.  In an action involving a warehouse operator that is brought under this chapter, a warehouse receipt constitutes prima facie evidence of the truth of the facts stated in the receipt.
Renumbered from Sec. 14.0261 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter G. Remedies and Claims › Section 14.062. Invalid Receipts

Sec. 14.062.  INVALID RECEIPTS.  Notwithstanding any other provision of this code or the Business & Commerce Code, a receipt for grain is void as to any person who receives the receipt with knowledge that the grain purported to be covered by the receipt was not, at the time the receipt was issued, actually stored in the warehouse of the warehouse operator issuing the receipt.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter G. Remedies and Claims › Section 14.063. Termination of Storage

Sec. 14.063.  TERMINATION OF STORAGE.  (a)  A warehouse operator desiring to terminate the storage of grain in the warehouse operator's warehouse, including grain that is abandoned or is unclaimed prior to the sale of a warehouse, shall do so in accordance with Sections 7.206 and 7.210, Business & Commerce Code, except that the warehouse operator is not required to hold the balance of the proceeds of a sale, but may transfer the balance to the comptroller, who shall treat the money in the same manner as an escheated bank account.
(b)  A purchaser in good faith of grain sold under Section 7.210, Business & Commerce Code, takes the grain free of any rights of the holder of the receipt, but the receipt is evidence of entitlement to the escheated funds deposited with the comptroller under Subsection (a).
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 2.01, eff. Sept. 1, 1997.  Renumbered from Sec. 14.023 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter G. Remedies and Claims › Section 14.064. Certain Loadout Fees Prohibited

Sec. 14.064.  CERTAIN LOADOUT FEES PROHIBITED.  (a)  A warehouse operator may not charge a fee for loading out grain if the loadout was the result of the misconduct of the warehouse operator.
(b)  Misconduct under this section includes:
(1)  violation of this chapter as established by final, unappealable order of the commissioner;
(2)  conviction of a crime, including a plea of nolo contendere, described as an offense under this chapter;  and
(3)  conviction of a crime, including a plea of nolo contendere, described as an offense under the Penal Code and involving any type of fraud or theft related to the storing, shipping, handling, sale, or purchase of grain or the sale or purchase of grain handling, shipping, or storage equipment or warehouse structures or other assets.
(c)  A loadout fee collected during a period of suspension of a warehouse operator's license by the department, after revocation of a warehouse operator's license, or during a period in which criminal charges are pending against a warehouse operator, shall be placed in an escrow account by the warehouse operator until:
(1)  the department's suspension is lifted;
(2)  the prosecutor ceases to pursue criminal charges;
(3)  the indictment or information is dismissed by a court;  or
(4)  the warehouse operator is acquitted.
(d)  If misconduct is finally determined to have occurred as provided by Subsection (b), the loadout fees placed in escrow shall be returned to the person originally paying those fees.  The loadout fees placed in escrow shall be returned to the warehouse operator if the warehouse operator is found not to have committed misconduct by acquittal, by the dismissal of the criminal charges, or by final order of the commissioner.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter G. Remedies and Claims › Section 14.065. Recovery on Bond; Liability of Warehouse Operator

Sec. 14.065.  RECOVERY ON BOND;  LIABILITY OF WAREHOUSE OPERATOR.  (a)  If no action on the bond or cash, certificate of deposit, or letter of credit deposited in lieu of a bond of a warehouse operator is begun before the 31st day after the date of a written demand to the department, a depositor has a right of action on the bond or cash, certificate of deposit, or letter of credit deposited in lieu of a bond for recovery of damages suffered by the depositor as a result of the failure of the warehouse operator to comply with any condition of the bond, or if cash, a certificate of deposit, or a letter of credit is deposited in lieu of a bond, failure to comply with any obligation of the warehouse operator under this chapter that would have been covered by a bond.
(b)  Recovery on a bond shall be prorated if claims exceed liability on a bond, but a depositor suing on a bond is not required to join other depositors in a suit.  The burden of establishing proration is on the surety as a matter of defense or is on the department as intervenor on behalf of other depositors.
(c)  A warehouse operator is liable for damages for loss of or injury to grain caused by the warehouse operator's failure to exercise the care that a reasonably prudent person would exercise in regard to the grain under similar circumstances, but, unless otherwise agreed, a warehouse operator is not liable for damages to grain that could not have been avoided through the exercise of that care.
(d)  A person who files an action on a bond under this section must serve notice of the suit on the department in the same manner and within the same period as for the defendant or surety who issued the bond.
(e)  On authentication by the department, the court shall accept into evidence as a public record any report prepared by the department under this chapter that describes potential bond claims by other depositors, regardless of whether any of those depositors are joined in the suit.
(f)  A person is prohibited from filing a claim on an invalid receipt.
(g)  An action under this section must be brought not later than the second anniversary of the date of expiration of the public grain warehouse license in effect at the time the claim arose.
(h)  The department by rule may set a limitations period for filing claims with the department on a bond filed with the department or cash, a certificate of deposit, or a letter of credit deposited with the department in lieu of a bond.
Renumbered from Sec. 14.010 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter G. Remedies and Claims › Section 14.066. Appeal of Department Action by Warehouse Operator

Sec. 14.066.  APPEAL OF DEPARTMENT ACTION BY WAREHOUSE OPERATOR.  (a)  A department action or order affecting a warehouse operator under this chapter is appealable in accordance with this section unless the action involves agency rulemaking, the assessment of an administrative penalty, imposition of a license sanction, or any other action for which a specific administrative or judicial remedy is available under this chapter, Chapter 12 of this code, or Chapter 2001, Government Code.
(b)  Not later than the 10th day after the date the department takes an action or issues an order described by Subsection (a), the warehouse operator may serve notice on the department to appear in a district court of Travis County or the district court of the county in which the public grain warehouse is located.  The court shall fix the time of the hearing not less than 3 days or more than 20 days after the date of service of the notice.
(c)  The burden is on the warehouse operator to show by a preponderance of the evidence that the action taken or order issued by the department was not authorized under this chapter or, if authorized, was an abuse of the department's discretion.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 168 (S.B. 248), Sec. 3, eff. September 1, 2011.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.071. General Penalty

Sec. 14.071.  GENERAL PENALTY.  (a)  A person commits an offense if the person violates a provision of this chapter for which an offense is not expressly provided.
(b)  An offense under this section is a Class B misdemeanor.
Renumbered from Sec. 14.027 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.072. Penalty for Operating Without a License

Sec. 14.072.  PENALTY FOR OPERATING WITHOUT A LICENSE.  (a)  A person commits an offense if the person:
(1)  transacts any public grain warehouse business without first obtaining a license required by this chapter;  or
(2)  continues to transact public grain warehouse business after a license has been revoked or suspended, or the license holder has been placed on probation, except as permitted under Section 14.084.
(b)  An offense under this section is a felony of the third degree.
(c)  A person commits a separate offense for each day business prohibited by this section is carried on.
Renumbered from Sec. 14.028 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.073. Penalty for Fraud

Sec. 14.073.  PENALTY FOR FRAUD.  (a)  A person commits an offense if the person:
(1)  issues or aids in issuing a receipt or scale weight ticket knowing that the grain covered by the receipt or scale weight ticket has not been actually received at the grain warehouse;
(2)  issues or aids in issuing a duplicate or additional negotiable receipt for grain knowing that a former negotiable receipt for the same grain or any part of the grain is outstanding except as permitted by Section 14.055;  or
(3)  fraudulently and without proper authority represents, forges, alters, counterfeits, or simulates any license, scale weight ticket, or receipt provided for by this chapter.
(b)  An offense under this section is a felony of the second degree.
Renumbered from Sec. 14.029 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.074. Penalty for Unlawful Delivery

Sec. 14.074.  PENALTY FOR UNLAWFUL DELIVERY.  (a)  A person commits an offense if the person:
(1)  delivers grain out of a public grain warehouse knowing that a negotiable receipt for the grain is outstanding and without possessing that receipt;  or
(2)  delivers grain out of a public grain warehouse:
(A)  knowing that a nonnegotiable receipt or scale weight ticket is outstanding;
(B)  without the prior approval of the person lawfully entitled to delivery;  and
(C)  without the delivery being shown on the appropriate records of the warehouse operator.
(b)  It is an affirmative defense to prosecution under this section that the person's action is:
(1)  a sale or other disposition of grain in lawful enforcement of a warehouse operator's lien;
(2)  a warehouse operator's lawful termination of a storing, shipping, or handling agreement;
(3)  a delivery to the person lawfully entitled to delivery;
(4)  a delivery authorized by prior approval of the person lawfully entitled to delivery and the delivery is shown on the appropriate records of the warehouse operator;
(5)  necessary to prevent destruction of the grain;
(6)  taken under the order of a state or federal court;  or
(7)  permitted by a rule of the department necessary to carry out this chapter.
(c)  An offense under this section is a felony of the second degree.
Renumbered from Sec. 14.030 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.075. Penalty for Fraudulently Issuing a Scale Weight Ticket or Receipt

Sec. 14.075.  PENALTY FOR FRAUDULENTLY ISSUING A SCALE WEIGHT TICKET OR RECEIPT.  (a)  A person commits an offense if the person fraudulently issues or aids in fraudulently issuing a receipt or scale weight ticket knowing that it contains a false statement.
(b)  An offense under this section is a felony of the second degree.
Renumbered from Sec. 14.031 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.076. Penalty for Changing a Receipt or Scale Weight Ticket After Issuance

Sec. 14.076.  PENALTY FOR CHANGING A RECEIPT OR SCALE WEIGHT TICKET AFTER ISSUANCE.  (a)  A person commits an offense if the person changes a receipt or scale weight ticket after its issuance.
(b)  It is a defense to prosecution under this section that the change on the receipt or scale weight ticket is a notation by the warehouse operator for partial delivery or corrections made by the warehouse operator to reflect accuracy of accounts.
(c)  An offense under this section is a felony of the second degree.
Renumbered from Sec. 14.032 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.077. Penalty for Depositing Grain Without Title

Sec. 14.077.  PENALTY FOR DEPOSITING GRAIN WITHOUT TITLE.  (a)  A person commits an offense if the person:
(1)  deposits grain without having title to the grain or deposits grain on which there is a lien or mortgage;
(2)  receives for the grain a negotiable receipt;  and
(3)  negotiates the receipt for value with intent to deceive and without disclosing the person's lack of title or the existence of a lien or mortgage on the grain.
(b)  An offense under this section is a felony of the second degree.
Renumbered from Sec. 14.033 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.078. Penalty for Stealing Grain or Receiving Stolen Grain

Sec. 14.078.  PENALTY FOR STEALING GRAIN OR RECEIVING STOLEN GRAIN.  (a)  A person commits an offense if the person:
(1)  obtains or exercises control over grain stored in a public grain warehouse without the owner's effective consent and with the intent to deprive the owner of the grain;
(2)  obtains from another person grain stolen from a public grain warehouse knowing that the grain is stolen;  or
(3)  exercises control over grain stolen from a public grain warehouse knowing that the grain is stolen.
(b)  An offense under this section is a felony of the second degree.
Renumbered from Sec. 14.034 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter H. Offenses › Section 14.079. Penalty for Interfering With Sealed Warehouse or Department Inspection or Investigation

Sec. 14.079.  PENALTY FOR INTERFERING WITH SEALED WAREHOUSE OR DEPARTMENT INSPECTION OR INVESTIGATION.  (a)  A person commits an offense if the person:
(1)  without the department's consent and with the intent to obstruct the department's regulation, management, or control of sealed grain, obtains or exercises control over grain stored in a building, bin, or other similar structure sealed by the department;
(2)  breaks, removes, vandalizes, or otherwise interferes with a department seal placed on a building, bin, or other similar structure used for the receiving of grain for hire, shipping of grain for hire, storing of grain for hire, or handling of grain for hire;
(3)  without the department's consent and with the intent to obstruct the department's regulation, management, or control of sealed grain, interferes with the department's access to or control of grain stored in a building, bin, or other similar structure sealed by the department;  or
(4)  interferes with the lawful investigation or inspection of the facilities, records, or grain deposits of a public grain warehouse by a department inspector or other department official.
(b)  It is an affirmative defense to prosecution under this section that the person's action is:
(1)  necessary to prevent destruction of stored grain or the sealed structure;  or
(2)  taken under the order of a state or federal court.
(c)  An offense under this section is a felony of the third degree.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter I. Enforcement › Section 14.081. Offense Is Violation; Standard of Proof

Sec. 14.081.  OFFENSE IS VIOLATION;  STANDARD OF PROOF.  (a)  Commission of an offense under this chapter is also a violation for purposes of administrative enforcement by the department.
(b)  Proof of a violation under this chapter for purposes of administrative enforcement, by assessment of an administrative penalty or license sanction, is by a preponderance of the evidence.
(c)  In an administrative enforcement action against a person for the commission of an offense under this chapter, the department is required to prove any intent element provided by the description of the offense.
(d)  Both an administrative enforcement action and a criminal prosecution may be maintained against a person who violates this chapter.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter I. Enforcement › Section 14.084. Operation After Revocation or Suspension of a License or Probation

Sec. 14.084.  OPERATION AFTER REVOCATION OR SUSPENSION OF A LICENSE OR PROBATION.  (a)  If a license is revoked, the warehouse operator shall terminate, in a manner prescribed by the department, all arrangements concerning storing, shipping, handling, and purchasing or selling of grain.
(b)  During a period of suspension of a license or probation, the warehouse operator:
(1)  shall operate the warehouse in a manner prescribed by the department;
(2)  may deliver grain previously received, subject to the department's written conditions of suspension, if any;  and
(3)  may not receive grain for storing, shipping, or handling without the department's written authorization.
Renumbered from Sec. 14.016 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter I. Enforcement › Section 14.085. Injunction

Sec. 14.085.  INJUNCTION.  (a)  If, after notice, a warehouse operator refuses to comply with this chapter, the department may apply for an injunction in a district court in Travis County or in a district or county court in the county where the warehouse is located.
(b)  The courts of this state are vested with jurisdiction to issue a temporary or permanent injunction against:
(1)  operation of a public grain warehouse or issuance of receipts or scale weight tickets either without a license or during a period of suspension of a warehouse operator's license or during a period when the warehouse operator is under probation;
(2)  interference by any person with the carrying out by the department, or by a receiver appointed under this chapter, of duties and powers granted by this chapter;  or
(3)  any other violation of this chapter for which injunctive relief is an appropriate remedy.
(c)  The notice provided for in Subsection (a) shall be delivered to the warehouse operator not less than 10 business days before the date the department applies for an injunction under Subsection (b)(1).
(d)  The notice provided for in Subsection (a) shall be delivered to the warehouse operator not less than two business days before the date the department applies for an injunction under Subsection (b)(2) or (3).
Renumbered from Sec. 14.025 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter I. Enforcement › Section 14.086. Civil Penalty

Sec. 14.086.  CIVIL PENALTY.  (a)  A person who violates this chapter is liable for a civil penalty of not less than $500 or more than $10,000 for each violation.  Each day a violation occurs or continues may be considered a separate violation for purposes of a civil penalty assessment.
(b)  On request of the department, the attorney general or the county attorney or the district attorney of the county in which the violation is alleged to have occurred shall file suit to collect the penalty.  The attorney general, a county attorney, or a district attorney may file suit under this section without a request from the department.
(c)  A county attorney, a district attorney, or the attorney general shall sue in the name of the state for the collection of a penalty provided by this section.
(d)  A civil penalty collected under this section shall be deposited in the state treasury to the credit of the general revenue fund.  All civil penalties recovered in suits initially instituted by a local government or governments under this section shall be divided equally between the state and the local government or governments, with 50 percent of the recovery to be paid to the general revenue fund and the other 50 percent to be paid equally to the local government or governments initially instituting the suit.
(e)  A civil penalty may not be collected for any violation that constituted the basis for a department proceeding to assess an administrative penalty, regardless of whether the department was successful in obtaining a judgment for the administrative penalty.
Added by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter I. Enforcement › Section 14.087. Recovery of Court Costs

Sec. 14.087.  RECOVERY OF COURT COSTS.  (a)  On prevailing in an action commenced by the department through the attorney general under this chapter, the department and the attorney general are each entitled to recover:
(1)  investigation costs and fees;
(2)  reasonable attorney's fees;
(3)  court costs; and
(4)  other costs relating to the action, including the cost of depositions and other forms of discovery and copying charges.
(b)  The costs recoverable under this section are in addition to other relief available to the department or attorney general.
Renumbered from Sec. 14.0262 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 168 (S.B. 248), Sec. 6, eff. September 1, 2011.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14 - Regulation of Public Grain Warehouse Operators › Subchapter I. Enforcement › Section 14.088. Venue

Sec. 14.088.  VENUE.  (a)  Venue for a criminal prosecution under this chapter is in the county in which the alleged offense occurred.
(b)  Except for an action for injunctive relief, venue for a civil action under this chapter commenced by the attorney general or a county or district attorney, either independently or on behalf of the department, is in any county in which all or part of the cause of the action accrued.
(c)  Venue for an action for injunctive relief under this chapter is in a district court in Travis County or in a district or county court in the county where the warehouse is located.
(d)  Venue for an administrative action commenced under this chapter is governed by Chapter 2001, Government Code, or, to the extent not inconsistent with Chapter 2001, the rules of the State Office of Administrative Hearings or the department.
Renumbered from Sec. 14.035 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
2023 Texas Statutes › Agriculture Code › Title 2 - Department of Agriculture › Chapter 14A - Other Public Warehouse Operators › Section 14A.001. Definitions

Sec. 14A.001.  DEFINITIONS.  In this chapter:
(1)  "Public warehouse operator" means a person who stores cotton, wheat, rye, oats, grapes, or rice, or any kind of produce.
(2)  "Warehouse" means a house, building, or room in which the commodities listed in Subdivision (1) are stored and protected from damage by the elements.
Amended by Acts 1997, 75th Leg., ch. 211, Sec. 1, eff. Sept. 1, 1997.  Renumbered from Sec. 14.201 and amended by Acts 2001, 77th Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 29 (S.B. 1939), Sec. 1, eff. September 1, 2019.