Alabama Administrative Code › Title 80 - ALABAMA DEPARTMENT OF AGRICULTURE AND INDUSTRIES › COMMISSIONER'S OFFICE › Chapter 80-6-5 - OPERATION OF PUBLIC WAREHOUSES › Section 80-6-5-.04 - Only Authorized Receipts May be Used

Current through Register Vol. 42, No. 9, June 28, 2024
(1) No warehouseman is authorized to issue
				any character or form of a receipt except that authorized by law and the rules
				and regulations of the State Board of Agriculture and Industries. Receipts now
				in use and approved by the State Board of Agriculture and Industries are
				approved receipts for use of public warehousemen.
(2) All endorsements on the warehouse receipt
				of the words stored in the open, shall be with a rubber stamp across the face
				of the receipts with letters of the words to be not less than 1/4 inch in
				height.
No receipts shall be used for representing cotton or other
				  articles of value, stored in the open other than those which are in use for the
				  storage of cotton or other articles of value within the warehouse.
(3) The Commissioner of
				Agriculture and Industries is authorized to negotiate and make arrangements by
				contract with a manufacturer of safety paper to have the seal of the Department
				of Agriculture and Industries watermarked in said paper for printing receipts
				approved for use by public warehousemen, and to cause the watermarked safety
				paper to be placed at the disposal of a contract printer. He is also authorized
				to negotiate and make arrangements by contract for printing of public warehouse
				receipts on the watermarked safety paper secured by contract from the
				manufacturer thereof. The printer shall make such bond or bonds for the
				faithful performance of his contract and the proper handling of the watermarked
				paper and orders of public warehousemen as the Commissioner may require.
All orders for receipts shall be made to the contract printer
				  by the warehouseman and the printer will submit a copy of the order, in
				  duplicate, to the Department of Agriculture and Industries for approval before
				  the order is filled.
(4)
				Any warehouseman who for some extraordinary reason desires to print his
				receipts in approved form and/or as an approved Block receipt, on a safety
				paper other than that herein described, may do so after first obtaining a
				special permit from the Commissioner of Agriculture and Industries, provided
				the printer making such receipts posts the necessary bond that may be required
				by the Commissioner and meets all other terms required of the contract printer.
				Should the warehouseman contract for and use receipts, contrary to the
				provisions of this section, the Commissioner may himself, or through his
				agents, at his discretion, confiscate such illegal receipts wherever found.
				Also the Commissioner himself, or through his agents, may confiscate all unused
				receipts of warehousemen whose permits have been withdrawn or who have ceased
				to do a warehouse business.
(5)
				Warehousemen are also authorized to use and issue receipts printed upon
				tabulating machine cards provided such receipts otherwise comply with all
				requirements of the law and rules and regulations now in effect which govern
				the issuance of uniform warehouse receipts and such receipts must be issued in
				accordance with all of the requirements for receipts set out in this rule and
				the law.
(6) The Commissioner of
				Agriculture and Industries is authorized to enter into a contract with a
				manufacturer of tabulating business machine cards whereby such manufacturer
				will supply and furnish public warehouses storing cotton with tabulating
				machine cards pre-punched which comply with requirements of the Commodity
				Credit Corporation on which there shall be imprinted the uniform cotton
				warehouse receipts now required of such warehousemen. The manufacturer
				furnishing the tabulating machine card receipts shall be required to make and
				execute any bond that may be required by the Commissioner for the faithful
				performance of his contract and for the proper handling of receipts prepared
				for sale and distribution to public warehousemen together with other
				requirements which will enable the Commissioner of Agriculture and Industries
				to enforce the provisions of the Uniform Commercial Code and this
				rule.
(7) In addition to the above
				forms of warehouse receipts authorized for use, the form of electronically
				recording warehouse receipts knows as an electronic warehouse receipt (EWR)
				record is authorized for use provided:
1. that
				electronic warehouse receipts recorded, issued and filed meet the requirements
				of the regulations promulgated by the Consolidated Farm Services Agency (CFSA),
				formerly Agricultural Stabilization Conservation Services (ASCS), and published
				in the Federal Register and annually codified as  7 C.F.R. part 735, relating to
				the issuance of cotton warehouse receipts, which regulations are incorporated
				herein and made a part hereof by reference for use of the Commissioner of the
				Alabama Department of Agriculture and Industries (Commissioner) as he may deem
				necessary;
2. that the individual
				or entity which operates the central filing system (CFS) which stores the (EWR)
				records, called "provider", shall meet the requirements of  7 C.F.R. part 735, as determined by the Commissioner. Only provider applicants approved by the
				CFSA shall be considered eligible for approval as a provider in Alabama.
				Eligible provider applicants shall first apply and secure approval form the
				Commissioner prior to providing service. The Commissioner shall not approve
				applicants with an interest which may reasonable be deemed to be in conflict
				with provider status as determined by Commissioner. Commissioner is authorized
				to formulate provider agreement for use as he may prescribe. He may suspend or
				terminate a provider's agreement for cause at any time.
3. Approved providers shall furnish to
				Commissioner annual audit level financial statements and submit to electronic
				data processing audits in like form submitted to CFSA; provide the
				Commissioner, for Department purposes, with unrestricted access to the physical
				site where the CFS and off-site records are retained, unrestricted access of
				provider's CFS and all related and backup files at no charge; and provide in a
				timely manner requested information in either electronic or printed format or
				both at Commissioner's discretion.
4. Each provider shall maintain an "errors
				and omissions", and a "fraud and dishonesty" insurance policy showing users,
				holders, and warehousemen as payees, each having a minimum coverage of $2
				million dollars with a deductible for each policy not to exceed $10,000.
				Provider shall provide Department with proof of such insurance upon request.
				Each policy shall contain a clause requiring written notification to Department
				thirty days prior to cancellation.
5. In addition to all other authority and
				power granted the Commissioner in the execution of the duties of the
				Department, as the same shall pertain to the regulation of EWR's for
				non-federally licensed warehousemen in the State of Alabama, the Commissioner's
				authority and power herein shall in all respects correspond to that of the CFSA
				under the provisions of  7 C.F.R. part 735.