Arkansas Administrative Code › Agency 209 - Arkansas Agriculture Department › Division 02 - State Plant Board › Rule 209.02.15-003 - Arkansas Grain Dealers Act Regulations

Current through Register Vol. 49, No. 6, June, 2024
SECTION
			 I.
GENERAL PURPOSE AND
			 INTENT
The Arkansas Grain Dealers Act is established to regulate grain
				dealers in the state of Arkansas that are not licensed under the Arkansas
				Public Grain Warehouse Law, the United States Warehouse Act and are not end
				users of grain. The Director of the Arkansas State Plant Board is appointed as
				the administrator of this law. The director shall administer this chapter and
				shall be the ultimate authority in the administration of this chapter. The
				agency may employ all necessary employees, counsel, and consultants to carry
				out the provisions of this law and is vested with the power necessary to fully
				and effectively carry out the provisions and objectives of this chapter.
SECTION II.
ORGANIZATION AND DESIGNATION OF DUTIES
The Arkansas Grain Dealers Act will be administered by the
				Arkansas State Plant Board. The Director or appointed representative is hereby
				designated as having the authority to carry out the activities needed to
				administer the Arkansas Grain Dealers Act. All proceedings and hearings will be
				conducted in accordance with A.C.A. §
									2-24-101 et seq. and A.C.A. §
									25-15-201 et seq.
SECTION III.
LICENSING AND BONDING
Application Form, GD-1 or GD-2, is to be used in securing a
				license under this Act, whether for a new license or the renewal of a license.
				This form will be supplied, upon request by the applicant, by the Plant Board.
				For renewals the form will be sent to all licensees from the previous year
				prior to the renewal deadline. Renewal applications should be delivered to the
				Plant Board at least thirty (30) days before the current license expires. The
				licensing period shall be from July 1 through June 30 of each year, with the
				exception of those licenses issued during the inception of the regulations.
				Those licenses will be inclusive of the time between their issuance and June
				30, 2016.
Each application for a license or license renewal shall be
				accompanied with a financial statement and signed report of a CPA or registered
				public accountant which must be a representation of an examined audit report, a
				review report or a compilation report. Additional reports required are a
				balance sheet, a schedule of notes payable, a statement of cash flows and other
				reports that may be stipulated by the Plant Board. All financial reports for
				year two and beyond of licensing are to be submitted to the Plant Board
				within
120 days of the company's fiscal year end. All financial
				statements must be in bound copy or in electronic pdf from the accountant. New
				companies, just being established and having less than one complete fiscal year
				of operation, need only a trial balance and estimated purchases for their first
				year to apply for a license. All financial records will be handled as dictated
				by A.C.A. 25-19-101 et seq. (Arkansas
				Freedom of Information Act.)
The Bond Form, Letter of Credit Form, and a Certificate of
				Deposit Form for the purpose of securing bonding for the grain dealer will be
				supplied in the application packet. Only one type of bonding is
				required.
Bonding requirements are as follows:
Purchases
In do
(Ra
of Grain llars nge)
Bonding in dollars
1
5,000,000
$50,000.00
5,000,001
20,000,000
$100,000.00
20,000,001
40,000,000
$200,000.00
40,000,001
60,000,000
$400,000.00
60,000,001
80,000,000
$600,000.00
80,000,001
100,000,000
$800,000.00
100,000,001
000 and over
$1,000,000.00
SECTION
			 IV.
FEES
As required by law, the application fee for a newly established
				business (a business with less than one (1) fiscal year of operation) is
				$150.00. The fee for an established business (a business with more than one (1)
				fiscal year of operation) is as follows:
Purchases In do (Ra
of Grain llars nge)
License Fee
1
5,000,000
$250.00
5,000,001
20,000,000
$300.00
20,000,001
40,000,000
$400.00
40,000,001
60,000,000
$500.00
60,000,001
80,000,000
$600.00
80,000,001
100,000,000
$700.00
100,000,001
and over
$800.00
One examination is to be made each year on each licensed
				dealer, the cost of which is included in the application fee. Additional
				examinations may be made at any time and at the discretion of the Director. If
				during the additional examinations a material discrepancy is found, the
				licensed dealer will be required to reimburse the State Plant Board at the rate
				of $40.00 per hour for the time required to make the additional
				examination(s).
SECTION V.
PENALTIES AND VIOLATIONS
Violations
Operating without a license, refusing to provide records during
				an audit, or knowingly violating the grain dealers act is a Class D felony. A
				person who negligently violates this law is guilty of a Class A misdemeanor.
				Upon conviction both are punishable by a criminal fine up to $100 dollars.
				Civil penalties may apply as well. The director may issue a cease and desist
				order for any violation of this law.
Minor Violations
Upon the first offense, violations that are clerical and
				believed to be accidental in nature will be considered to be minor violations.
				Examples of such violations include, but are not limited to, the loss of voided
				scale tickets, settlements or contracts and not conducting business as
				prescribed by the grain dealer act.
Penalty Violations:
Violations that fall under the
				civil penalty matrix.
A. Second
			 violation of the minor violations.
B. Failure to pay on the due date of the
			 payment agreement.
C. Knowingly
			 falsifying records.
D. Refusal to
			 allow inspection of records.
E.
			 Operating without a license.