1. (a) Licenses are not transferable. Any intentions to change ownership shall be immediately reported to the department. In addition, the licensee shall also notify the department in writing within ten days of any change in:

   1. (1) billing address;
   2. (2) agent address;
   3. (3) managers;
   4. (4) authorized personnel to sign warehouse receipts.

2. (b) Warehouse Requirements. A grain warehouse shall be considered suitable for storing, shipping and handling grain if it meets the following:

   1. (1) be weathertight to protect grain from the elements at all times.
   2. (2) be structurally sound so as to provide proper and adequate storage for the commodity being stored and to prevent mixing of grain which requires separate storage.
   3. (3) provide a safe and adequate means of entry and exit to all storage units.

3. (c) Records. Records required by §14.022 shall be maintained at each grain warehouse location unless otherwise approved by the department.

   1. (1) A licensee shall maintain a complete, correct and legible daily position report which shall be kept current as of the close of each business day.

   2. (2) The daily position report shall declare all grain in the warehouse as either receipted grain, open-storage grain, or company-owned grain. Any change on the daily position report shall be supported by at least one of the following documents:

      1. (A) a signed copy of the contract of purchase. Such contract shall not be part of any scale weight ticket, settlement agreement, or other unrelated document issued by the licensee;
      2. (B) a canceled check;
      3. (C) a canceled grain warehouse receipt; or
      4. (D) a scale weight ticket.
   3. (3) An expired warehouse receipt is non-negotiable and the obligation transfers on the daily position report from warehouse receipted to open storage. The depositor has the option to have a new negotiable warehouse receipt issued after satisfying accrued storage and handling charges, or to leave as an open storage obligation. The licensee has the option to offset any accrued storage and handling charges. Before the offset, the licensee shall provide 30 days advance notice by certified mail to the last known address of the depositor. Such notice shall contain a statement of account including, but not limited to, the kind of grain, quantity, current market price and accrued storage and handling charges. Storage charges may be calculated for the ten-year term at the present rate on the day of the offset, unless the storage rate is indicated on the warehouse receipt.

   4. (4) Serially numbered scale weight tickets shall be issued for each load of grain received at or shipped from a public grain warehouse on the date of shipment or receipt. Each ticket shall show:

      1. (A) the gross, tare, and net weight of the grain, without allowance for shrinkage or other discounts;
      2. (B) the date of transaction;
      3. (C) the kind and class of grain;
      4. (D) an indication as to whether it is inbound or outbound grain;
      5. (E) the name and location of the grain warehouse;
      6. (F) the printed name and the Farm Service Agency farm number or business address of the person to whom the ticket was issued;
      7. (G) the printed name and signature of the person issuing the ticket; and
      8. (H) the name of the person weighing the grain if different from the person issuing the ticket.
   5. (5) Records shall be immediately available for inspection at the licensed location during normal business hours. Upon request by the department, a warehouseman shall furnish copies of all requested records within five business days.
   6. (6) Records shall be retained for a period of not less than two years after the date each liability is satisfied.
4. (d) Any warehouse with a 3.0% or greater variance between the measured grain position and the grain position as established by the daily position report, on the date of measurement, may be suspended until the shortage is corrected. During the suspension, the department is authorized to seize any unused receipts, the daily position report, and the warehouse license and hold same until the department is satisfied that the shortage is corrected.

Source Note:The provisions of this §13.2 adopted to be effective September 2, 1996, 21 TexReg 7961.