CHAPTER 14A. OTHER PUBLIC WAREHOUSE OPERATORS

AGRICULTURE CODE

TITLE 2. DEPARTMENT OF AGRICULTURE

CHAPTER 14A. OTHER PUBLIC WAREHOUSE OPERATORS

Sec. 14A.001. DEFINITIONS. In this chapter:

(1) "Public warehouse operator" means a person who stores

cotton, wheat, rye, oats, or rice, or any kind of produce.

(2) "Warehouse" means a house, building, or room in which the

commodities listed in Subdivision (1) are stored and protected

from damage by the elements.

Amended by Acts 1997, 75th Leg., ch. 211, Sec. 1, eff. Sept. 1,

1997. Renumbered from Sec. 14.201 and amended by Acts 2001, 77th

Leg., ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.002. CERTIFICATE TO TRANSACT BUSINESS. No person may

operate a warehouse without first obtaining a certificate to

transact business as a public warehouse operator from the county

clerk of the county in which the warehouse is located.

Renumbered from Sec. 14.204 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.003. APPLICATION FOR CERTIFICATE. (a) In order to

obtain a certificate to transact business, a person must apply in

writing to the county clerk of the county in which the warehouse

is to be operated. The application must state the name and

location of the warehouse and:

(1) the name of each person with an interest as owner or

principal in the warehouse; or

(2) if a corporation owns or manages the warehouse, the name of

the president, secretary, and treasurer of the corporation.

(b) The clerk shall issue the certificate and retain for county

records a copy of the application.

Renumbered from Sec. 14.205 by Acts 2001, 77th Leg., ch. 1124,

Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.004. BOND. (a) A person receiving a certificate to

transact business shall file a bond with the county clerk

granting the certificate.

(b) The bond must be:

(1) payable to the State of Texas;

(2) of good and sufficient surety;

(3) conditioned on faithful performance of the applicant's duty

as a public warehouse operator; and

(4) in the amount of $5,000.

(c) A bond is subject to approval by the county clerk and the

clerk shall file approved bonds in the clerk's office.

Renumbered from Sec. 14.206 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.005. RECEIPTS. (a) The owner or depositor of property

stored in a warehouse may request from the public warehouse

operator a receipt for the property stored in the warehouse.

(b) The receipt shall be signed by the public warehouse operator

or the warehouse operator's agent and shall state:

(1) that the receipt is issued by a warehouse;

(2) the date of its issuance;

(3) the name and location of the warehouse in which the property

is stored; and

(4) the description, quantity, number, and marks of the property

stored.

(c) The public warehouse operator shall number receipts

consecutively in the order of their issue and shall keep a

correct record of receipts issued available for public inspection

at reasonable hours.

Renumbered from Sec. 14.207 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.006. RECEIPT FOR COTTON. (a) A public warehouse

operator shall issue a warehouse receipt to any person who

deposits cotton in the warehouse operator's warehouse and

requests a receipt.

(b) The receipt shall contain:

(1) all information required to be included on a receipt by

Section 14A.005;

(2) the date on which the cotton was received in the warehouse;

(3) a statement that the cotton represented by the receipt is

deliverable on return of the receipt properly endorsed and

payment of charges for storage and insurance stated on the face

of the receipt; and

(4) a statement of the grade and staple of the cotton

represented by the receipt.

(c) The statement of grade and staple of cotton required on

receipts by this section shall be determined by a licensed public

cotton classer. The public warehouse operator may not charge the

depositor of the cotton more than 25 cents per bale for the

statement. If no licensed public cotton classer is available, the

warehouse operator may issue a temporary receipt that:

(1) does not contain a statement of grade and staple of the

cotton;

(2) has the words "temporary receipt" clearly stamped on its

face; and

(3) is exchangeable at any time after five days from the date of

its issuance for a permanent warehouse receipt containing all

information required by Subsection (b).

(d) Failure or neglect by a public warehouse operator to comply

with the provisions of this section is a ground for revocation of

a certificate to transact business as a public warehouse

operator.

Renumbered from Sec. 14.208 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.007. DUPLICATE RECEIPTS. (a) A public warehouse

operator may not issue a duplicate receipt or two receipts

bearing the same number from the same warehouse during the same

calendar year, except as provided by Subsection (b).

(b) If a receipt is lost or destroyed, the public warehouse

operator shall issue a new receipt that:

(1) bears the same date and number as the original receipt;

(2) is plainly marked "duplicate" on its face; and

(3) is secured with a deposit:

(A) made by the person requesting the duplicate receipt; and

(B) acceptable to the warehouse operator to protect a person who

may hold the original receipt in good faith and for valuable

consideration.

Renumbered from Sec. 14.209 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.008. EXCHANGE OF COTTON RECEIPTS. (a) A person may

exchange a nonnegotiable receipt for cotton for a negotiable

receipt for cotton by:

(1) returning the nonnegotiable receipt to the warehouse issuing

it; and

(2) complying with the provisions of this chapter relating to

negotiable receipts.

(b) When the negotiable receipt is surrendered or canceled, the

public warehouse operator shall mark or stamp "canceled" in ink

on the face of the receipt.

Renumbered from Sec. 14.210 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.009. COTTON UNDER LIEN. A person who buys, sells, or

deals with cotton on which a lien or encumbrance exists is not

liable for conversion of the cotton if:

(1) the cotton is stored in a warehouse or is evidenced by a

negotiable warehouse receipt issued by a public warehouse

operator; and

(2) the person did not have actual knowledge of the lien or

encumbrance at the time of the alleged conversion.

Renumbered from Sec. 14.211 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.010. RECEIPT TO BE ISSUED ONLY ON DELIVERY. A public

warehouse operator may not issue a receipt until the goods

secured by the receipt are actually delivered to the warehouse

and are under the control of the warehouse operator issuing the

receipt.

Renumbered from Sec. 14.212 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.011. DELIVERY. (a) A public warehouse operator shall

immediately deliver property held in the warehouse on:

(1) presentation of a properly endorsed receipt issued by the

warehouse operator to represent the property; and

(2) payment by the holder of the receipt of all proper warehouse

charges on property represented by the receipt.

(b) Unless a receipt has been lost or canceled, a public

warehouse operator may not deliver property represented by a

receipt until the receipt is surrendered and canceled.

(c) On delivery of goods represented by a receipt, the public

warehouse operator shall cancel the receipt by writing "canceled"

in ink on the receipt and placing the warehouse operator's name

on the face of the receipt. A canceled receipt is void and may

not be circulated.

(d) A public warehouse operator who fails to strictly comply

with this section is liable to the legal holder of the receipt

for the full value of the property represented by the receipt,

based on the value of the property at the time of the default.

Renumbered from Sec. 14.213 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.012. EXCEPTIONS. (a) This chapter does not apply to

private warehouses or the issuance of receipts by the owners or

managers of private warehouses.

(b) This chapter does not prohibit a public warehouse operator

from issuing the same types of receipts as issued by a private

warehouse, provided that the faces of the receipts are plainly

marked with: "not a public warehouse receipt."

Renumbered from Sec. 14.214 and amended by Acts 2001, 77th Leg.,

ch. 1124, Sec. 1, eff. Sept. 1, 2001.

Sec. 14A.013. REVOCATION OF A CERTIFICATE. (a) A person may

sue in the district court of the county in which a warehouse is

situated to revoke the certificate of the warehouse.

(b) The person seeking revocation of the certificate shall

provide the court with a written petition setting forth

particular violations of the law, and the court shall conduct the

trial with the same rules of process, procedure, and evidence

used in civil cases.

Renumbered from Sec. 14.216 by Acts 2001, 77th Leg., ch. 1124,

Sec. 1, eff. Sept. 1, 2001.