Texas Senate Bill SB248

Texas 2011 - 82nd Regular

• Introduced: 12/7/10
• Out of Senate Committee: 3/17/11
• Voted on by Senate: 3/23/11
• Refer: 1/31/11
• Out of House Committee: 4/20/11
• Report Pass: 3/17/11
• Voted on by House: 5/13/11
• Engrossed: 3/23/11
• Governor Action: 5/28/11
• Refer: 3/30/11
• Report Pass: 4/12/11
• Enrolled: 5/16/11
• Passed: 5/28/11

Caption

Relating to the regulation of public grain warehouse operators.

Impact

If enacted, SB248 will significantly impact public grain warehouse operations by tightening the regulations under which they must operate. The amendments include raising the minimum bond requirement for warehouse operators from $20,000 to $35,000 and stipulating that a deficiency bond must be filed if an operator's net worth falls below predetermined thresholds. These changes are intended to foster greater financial responsibility among warehouse operators and provide a safety net to protect depositors in case of insolvency or mismanagement.

Summary

Senate Bill 248 aims to enhance the regulation of public grain warehouse operators in Texas by amending several sections of the Agriculture Code. The primary focus of the bill is to ensure that warehouse operators maintain sufficient grain supplies to cover outstanding receipts and scale weight tickets. It introduces provisions for the Department of Agriculture to seal warehouses under certain conditions, such as if an operator fails to possess adequate grain or refuses lawful inspections. The bill empowers the department to take decisive actions that can suspend licenses and prevent grain movement, ensuring accountability among operators.

Contention

Discussions surrounding SB248 highlighted notable points of contention, particularly regarding the degree of regulatory oversight. Proponents of the bill argue that stricter regulations will enhance consumer protection and ensure the safety and security of grain deposits. Conversely, some stakeholders express concerns that the increased regulatory burden could stifle smaller, independent operators who may struggle to meet the new requirements. There are apprehensions about the potential costs associated with compliance and how it may lead to a decrease in competition within the industry.