82R6722 TRH-F
By: Landtroop H.B. No. 1324
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of public grain warehouse operators.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 14.012, Agriculture Code, is amended to
read as follows:
Sec. 14.012. FINANCIAL [BUSINESS] INFORMATION. (a) In
this section, "financial information" means:
(1) a financial statement or other document provided
by a warehouse operator to the department to establish the
warehouse operator's net worth under Section 14.031(e);
(2) a financial audit provided by a warehouse operator
to the department;
(3) a statement of the price paid by or to a warehouse
operator for grain delivered to, stored by, or handled by the
warehouse operator; or
(4) a statement of the terms of a payment described by
Subdivision (3).
(b) Except as provided by Subsections (c) and (d), financial
information provided to the department by a warehouse operator
under this chapter [The following information, prepared by the
department in the course of its regulatory authority under this
chapter or required to be submitted to the department in accordance
with the department's administration of this chapter,] is
confidential and not subject to public disclosure[:
[(1) inspection or investigation reports containing
information regarding grain inventory; and
[(2) financial information provided to the department
to establish net worth for purposes of licensing].
(c) [(b)] Notwithstanding Subsection (b), [(a), inspection
reports containing information regarding grain inventory of a
warehouse operator or] financial information of a warehouse
operator provided to the department [to establish net worth] may be
disclosed:
(1) [entered into evidence] without sealing [and made
public] in[:
[(A)] an administrative proceeding commenced by
the department against the [a] warehouse operator;
(2) to the attorney general or to a local or state law
enforcement officer, [(B) a civil or criminal proceeding
commenced by] a county attorney, or a district attorney who, [or the
attorney general,] either independently or on behalf of the
department, is investigating the [, against a] warehouse operator;
[or]
(3) in [(C)] a civil proceeding commenced by the
warehouse operator against the department;
(4) in response to a subpoena from a party in a civil
proceeding commenced against the warehouse operator;
(5) [(2) provided] to the issuer of the [a] warehouse
operator's bond or letter of credit [for the purpose of
establishing a claim on the warehouse operator's bond or letter of
credit];
(6) [(3) disclosed] to the public after:
(A) revocation of the [a] warehouse operator's
license;
(B) a voluntary closeout of all of the license
holder's facilities in this state;
(C) a petition for bankruptcy has been filed by
or against the warehouse operator; or
(D) a receiver is appointed for the warehouse
operator's assets; or
(7) [(4) disclosed] to any federal agency or any
agency of another state conducting a compliance inspection or
criminal or civil investigation involving the handling, storing,
shipping, selling, purchasing, or receipt of grain.
(d) Notwithstanding Subsection (b), a warehouse operator:
(1) shall provide to a person at the person's request a
copy of an agreement or contract between the person and the
warehouse operator; and
(2) shall provide financial information to a person
who authored or contributed to the creation of the financial
information, for the purpose of confirming the authenticity,
truthfulness, or accuracy of the financial information.
(e) A warehouse operator may not redact a contract,
agreement, or financial information provided to a person under
Subsection (d).
SECTION 2. Sections 14.031(d) and (e), Agriculture Code,
are amended to read as follows:
(d) The bond must be in an amount of not less than $35,000
but not more than $500,000 [$20,000] and be based on 10 [six] cents
per bushel of storage capacity.
(e) If the actual net worth of an applicant equals less than
the greater of 25 cents per bushel of storage capacity or $200,000,
the applicant shall file a deficiency bond in an amount equal to the
difference between the actual net worth and the greater of $200,000
or the [an] amount determined by multiplying 25 cents times each
bushel of storage capacity in the applicant's warehouse. A
deficiency bond is in addition to the bond required of an applicant
by this section.
SECTION 3. Section 14.066(a), Agriculture Code, is amended
to read as follows:
(a) A department action or order affecting a warehouse
operator under this chapter[, other than by rulemaking, assessment
of an administrative penalty, or imposition of a license sanction,
including a suspension under Section 14.083(c),] is appealable in
accordance with this section unless the action involves:
(1) rulemaking;
(2) the assessment of an administrative penalty;
(3) the imposition of a license sanction; or
(4) any other action for which a specific
administrative or judicial remedy is available under:
(A) this chapter;
(B) Chapter 12; or
(C) Chapter 2001, Government Code.
SECTION 4. Section 14.082, Agriculture Code, is amended by
amending Subsection (a) and adding Subsection (g) to read as
follows:
(a) If the department determines that a warehouse operator
does not possess sufficient grain to cover outstanding receipts and
outstanding scale weight tickets issued or assumed by the warehouse
operator, or if a warehouse operator refuses or is unable to submit
records or property for lawful inspection or the department is
unable to conduct an inspection of the warehouse due to the
condition of the warehouse or grain stored in the warehouse, the
department may seal the warehouse to prevent delivery or receipt of
grain except as authorized by the department, suspend the warehouse
operator's license, and give notice to the warehouse operator
requiring the warehouse operator to:
(1) submit records or property for inspection;
(2) correct any condition interfering with the
department's inspection of a warehouse or grain; or
(3) cover a shortage of a particular type of grain by:
(A) [(1)] storing to the credit of or delivering
to each depositor affected by the shortage grain of the same type
and quality that is stored at any of the warehouse operator's
licensed warehouses in this state and that has been designated as
company-owned grain by the warehouse operator;
(B) [(2)] purchasing and storing to the credit of
or delivering to each depositor affected by the shortage grain of
the same type and quality;
(C) [(3)] selling company-owned grain of a
different type and paying to each depositor affected by the
shortage, on a pro rata basis, the market value of the depositor's
grain as determined on the day the shortage was discovered by the
department; or
(D) [(4)] using any combination of the remedies
described by Paragraphs (A)-(C) [Subdivisions (1)-(3)] or another
fair and reasonable method for meeting the shortage approved by the
department.
(g) A suspension issued under this section remains in effect
until lifted by the department through written notice to the
warehouse operator or following an appeal under Section 14.066.
SECTION 5. Section 14.083, Agriculture Code, is amended by
amending Subsection (c) and adding Subsection (f) to read as
follows:
(c) In addition to or in lieu of a suspension authorized by
this chapter, if [If] the department considers it necessary, the
department may without a hearing suspend a license and prohibit the
movement of grain into or out of a warehouse [without a hearing] for
not more than 30 days. For good cause shown, the department may
extend a suspension issued under this subsection for one or more
additional periods of up to 30 days each but not to cumulatively
exceed 90 [30] days in one licensing period.
(f) A suspension issued under Subsection (c) remains in
effect until the suspension:
(1) is lifted by the department through written notice
to the warehouse operator;
(2) is lifted by the department following an appeal
under Section 14.066; or
(3) expires by operation of law in accordance with:
(A) the department's notice of suspension; or
(B) the ending of the period specified by
Subsection (c).
SECTION 6. Section 14.082(f), Agriculture Code, is
repealed.
SECTION 7. The changes in law made by Sections 14.031(d) and
(e), Agriculture Code, as amended by this Act, apply only to a
license issued, renewed, or amended on or after the effective date
of this Act. A license issued, renewed, or amended before the
effective date of this Act is governed by the law in effect when the
license was issued, renewed, or amended, and the former law is
continued in effect for that purpose.
SECTION 8. This Act takes effect September 1, 2011.