Louisiana Administrative Code › Title 7 - AGRICULTURE AND ANIMALS › Part XXVII - Agricultural Commodity Dealer and Warehouse Law › Chapter 1 - Agricultural Commodities Commission › Subchapter A - General Provisions › Section XXVII-101 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
Adjudicatory Proceeding
-an open public
					 hearing by the commission to determine whether violations of
					 R.S.
					 3:3401-3425 or the regulations contained in this
					 Part have occurred. Such proceedings are conducted in accordance with the
					 Administrative Procedure Act (R.S. 49:950 et
					 seq.).
Advance
-a partial payment against total
					 proceeds due to a seller.
Agricultural Commodities
-cotton, all
					 agricultural products commonly classed as grain (rice, corn, wheat, oats, rye,
					 soybeans, barley, and grain sorghum), and any other agricultural commodity
					 which the commission may declare to be an agricultural commodity subject to
					 regulation under
					 R.S.
					 3:3401-3425.
Applicant
-any person making application
					 for a license to engage in any of the activities regulated under
					 R.S.
					 3:3401-3425 or anyone who requests official
					 grain inspection services and/or grain weighing services of the
					 department.
Audited
(with respect to a financial
					 statement)-a financial statement prepared by an independent certified public
					 accountant, the basis of which financial statement is the accountant's
					 independent examination of the books and records of the business entity covered
					 by the financial statement.
Authentic Act
-a statement executed before
					 a notary public and at least two witnesses.
Authorized Agent
-with reference to the
					 authorized agent of a warehouse or grain dealer, any representative thereof
					 whose name has been filed with the commission as such. A person whose name has
					 not been filed with the commission as an authorized agent will not be
					 recognized by the commission as entitled to act for or on behalf of a warehouse
					 or grain dealer.
Bid Contract
-an agreement between a
					 producer and a purchaser under which the purchaser examines samples of rice and
					 extends to the producer an offer to purchase the rice at a price based on the
					 quality of the sample.
Capacity
-all of the area of a licensee
					 which is in any kind of protected enclosure.
CCC
-Commodity Credit Corporation.
Central Filing System (CFS)
-a n electronic
					 system operated and maintained by a provider where information relating to
					 electronic warehouse receipts is recorded and maintained in a confidential and
					 secure fashion independent of any outside influence or bias in action or
					 appearance, and that is authorized by the director.
Certified
-with respect to the financial
					 statements required under the Act
					 R.S.
					 3:3401-3425, a written statement signed by the
					 independent certified public accountant preparing the financial
					 statement.
Commission
-the Louisiana Agricultural
					 Commodities Commission.
Commissioner
-the Louisiana Commissioner of
					 Agriculture and Forestry.
Compilation
-with respect to a financial
					 statement, a financial statement prepared by an independent certified public
					 accountant solely on the basis of representations of the management of the
					 business entity covered by the financial statement.
Confirmation Date
-the date on which the
					 bid contract was confirmed.
Confirmed
-the bid contract has been agreed
					 to by both parties. A bid contract is confirmed when the producer and the
					 purchaser agree to the quantity and price of the rice to be sold.
Cotton Agent
-every person, firm,
					 corporation, association, or other legal entity which purchases or contracts to
					 purchase cotton grown or to be grown by producers in this state for or on
					 behalf of a cotton merchant and which is required to be a party to a notarized
					 written agency agreement.
Cotton Merchant
-every person, firm,
					 corporation, association, or other legal entity which purchases or contracts to
					 purchase, either directly or through a cotton agent, cotton grown or to be
					 grown by producers in this state.
Current Financial Statement
-a financial
					 statement containing all of the documents listed in
					 §107. B of this Part
					 and presenting financial position as of the close of the applicant's or
					 licensee's most recent fiscal year.
Deferred Price Commodities
-commodities
					 purchased by a grain dealer from a producer for which the sale price will be
					 established after date of the initial agreement between the parties. The
					 agreement between the parties covering deferred price commodities shall be in
					 writing. The term deferred price commodities is the same as the other following
					 terms in general usage: price later, no price established (NPE), delayed price,
					 basis contract, future settlement delivery, or contract for purchase.
Delivery Date
-the date on which the
					 purchaser is required to take delivery of the rice, either under the provisions
					 of Subchapter O of this Chapter or under the provisions of a written agreement
					 between the producer and the purchaser.
Department
-the Louisiana Department of
					 Agriculture and Forestry.
Director
-the employee of the commission
					 who is responsible for implementing the policies of the commission and
					 performing the administrative responsibilities delegated to the commissioner
					 under R.S.
					 3:3401-3425.
Electronic Warehouse Receipt (EWR)
- a
					 receipt that is issued or transmitted in the form of an electronic
					 document.
Farm Products
-products employed directly
					 in the cultivation, production, or harvesting of any agricultural commodities
					 or containers for agricultural commodities or farm products.
Fee
-any charge imposed by a warehouse,
					 directly or indirectly, for care of agricultural commodities belonging to any
					 person other than the warehouse owner, including but not limited to base price
					 adjustments, storage, handling, dockage, commission, drying, and/or
					 conditioning fees or any fees as listed on the latest approved schedule of fees
					 (§128. D of this Part)
					 for official grain inspections and weighing services provided by the
					 department.
Field Warehouse
-a warehouse operated by a
					 management organization under a contractual agreement between the management
					 organization and the owner of the warehouse.
First Point of Sale
-the initial time when
					 title to agricultural commodities or farm products passes from a seller to a
					 buyer.
Grain
- corn, wheat, oats, rye, soybeans,
					 barley, and grain sorghum.
Grain Dealer
-any person who purchases
					 agricultural commodities from producers, sells agricultural commodities for
					 producers, or represents producers in the purchase or sale of agricultural
					 commodities. The term does not include producers who purchase grain commodities
					 for their own use as feed or seed.
Hedge
(with respect to a contract to sell
					 commodities)-a secondary contract to buy commodities to protect the obligations
					 incurred with respect to the contract to sell. Hedge, with respect to a
					 contract to buy commodities, means a secondary contract to sell commodities to
					 protect the obligations incurred with respect to the contract to buy.
Identity Preserve
-
1. instances in which a warehouse preserves the separate
					 identities of different lots of agricultural commodities; or
2. instances in which a warehouse preserves the separate
					 identities of agricultural commodities belonging to different owners.
Independent Certified Public Accountant
-a
					 person who has completed all requirements established by the American Institute
					 of Certified Public Accountants and the state Society of Louisiana Certified
					 Public Accountants. To be recognized as an independent public accountant, the
					 accountant, members of his immediate family, and his accounting business
					 associates shall be totally free of any obligation to or interest in the
					 client, its management, or its owners.
Licensed Capacity
-the warehouse area which
					 is bonded for the storage of agricultural commodities or farm products
					 belonging to a person other than the owner of the warehouse.
Licensee
-any person holding a license as a
					 warehouse, cotton merchant or grain dealer issued by the commission.
Open
or
Open Position
-the
					 grain dealer's contracts for purchase or sale of agricultural commodities which
					 are unhedged.
Person
-any individual, partnership,
					 company, firm, association, corporation, cooperative association, or any other
					 legal entity engaged in any of the activities regulated under
					 R.S.
					 3:3401-3425.
Producer
-the owner, tenant, lessee, or
					 operator of land within this state who has an interest in or receives all or
					 any part of the proceeds from the sale of agricultural commodities produced
					 thereon.
Purchaser
-any person who purchases rice
					 from a producer under a bid contract.
Review
(with respect to a financial
					 statement)-a financial statement prepared by an independent certified public
					 accountant, in the preparation of which financial statement the accountant
					 makes such inquiries of management and performs such analyses and/or
					 comparisons as may appear appropriate to the accountant.
Risk Position
-the loss potential to the
					 grain dealer resulting from bringing its open position to market.
Scale Ticket
-the document issued to a
					 producer when agricultural commodities are delivered to a warehouse or grain
					 dealer.
Security-
any financial instrument or
					 document issued for the benefit of or given to the commission by a licensee or
					 participant in any self-insurance fund program authorized by
					 R.S.
					 3:3402 et seq., as assurance for the
					 fulfillment of the obligations imposed on the licensee by applicable law or
					 regulations.
Spot
or
Spot Sale
-a
					 transaction where title to agricultural commodities passes from the producer to
					 the buyer on the day of delivery, in which transaction the producer is paid
					 promptly at the market price established on the day of delivery.
Storage
-the physical possession by a
					 warehouse, in any manner and/or under any type of fee arrangement, of
					 agricultural commodities belonging to any person other than the owner of the
					 warehouse. The term
storage
does not apply to a transaction in
					 which title passes from the seller to the buyer upon delivery.
Temporary Storage
-storage of a commodity
					 for a temporary period of time in a space approved by the commission which does
					 not meet standard requirements for conventional storage.
Warehouse
-any building, structure, or any
					 other protected enclosure required to be licensed by the commission in which
					 agricultural commodities or farm products are stored for the public for a fee.
					 The term includes facilities which commingle commodities belonging to different
					 owners and facilities which preserve the separate identities of different lots
					 of agricultural commodities.
Warehouse Operator
-any person or other
					 entity operating a warehouse.
Warehouse Receipts
-may be paper or
					 electronic and may be negotiable or non-negotiable and are defined as
					 follows.
1.
Non-Negotiable Warehouse
					 Receipts
-written evidence of the deposit of agricultural commodities
					 or farm products in a warehouse, which cannot be sold or traded by the holder
					 and cannot be used to secure a loan.
2.
Negotiable Warehouse Receipts
-written
					 evidence of the deposit of agricultural commodities or farm products in a
					 warehouse, which can be sold or traded by the holder and can be used to secure
					 a loan.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 3:3402 and
					 R.S.
					 3:3405.