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DEPARTMENT OF AGRICULTURE

 

DIVISION 32

WAREHOUSES AND GRAIN

603-032-0090

Intent

Persons who operate grain warehouses in Oregon should obtain copies from the State Department of Agriculture, Commodity Inspection Division, 635 Capitol Street N.E., Salem, Oregon 97310, and become familiar with the provisions of the Oregon Grain Warehouse and Inspection Law, ORS Chapter 586. The regulations hereafter promulgated by the Department, in most instances merely clarify and carry out the intent of the legislature and such law. Particular reference for example, should be made in the law to the definition of "Grain" and the fact should be noted (ORS 586.382) in the law it states in part "A warehouseman operating another business in conjunction with, or in proximity to, his licensed public warehouse shall keep a complete set of records for the warehouse business, entirely separate and distinct from the accounts and records of any other business". Regulations have the effect of law in Oregon.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0100

Definitions

As used in OAR 603-032-0100 to 603-032-0150, unless the context otherwise requires, and in addition to the definitions set forth in ORS 586.210:

(1) "Act" means ORS Chapter 586.

(2) "Depositor" means any person who deposits an agricultural commodity in an Oregon state licensed warehouse for storage, handling, processing, reconditioning or shipment, and who is the owner or holder of a negotiable warehouse receipt or other evidence of such deposit, whether or not such agricultural commodity is within the warehouse.

(3) "Persons" includes individuals, partnerships, corporations, and associations.

(4) "Station" (see ORS 586.270) means the public warehouses of an applicant for a license, in a particular locality.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 586, f. 7-28-58, ef. 7-25-58; AD 670, f. 6-16-61, ef. 7-1-61; AD 712, f. 10-3-62, ef. 10-11-62; AD 901(7-69), f. 5-28-69, ef. 7-1-69; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0105

Definitions -- Public Warehouses

As used in these rules, unless the context requires otherwise, "public warehouses" shall include elevators, mills, warehouses, temporary structures, containers, or facilities used for the storage and handling of grain which shall be subject to the provisions of ORS Chapter 586 and the administrative rules thereunder, including all requirements for licensing, bonding, and maintenance of the facilities.

Stat. Auth.: ORS Ch. 561 & ORS 586
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 11-1986, f. & ef. 6-27-86; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0110

Licenses

(1) Every person who has not complied with the requirements of subsection (4) of Section 586.300 of the Act and who desires to engage in business as a public warehouseman under the provisions of the Act, shall, prior to the commencement of such business, file with the Department a surety bond or letter of credit executed in favor of the State of Oregon. Such bond shall be executed by a corporate surety qualified to do business in the State of Oregon. No warehouseman's license shall be issued prior to the Department's approval of such bond or letter of credit.

(2) Warehouse licenses shall be issued yearly and shall expire on June 30 of each year. Licenses issued for a fractional part of the fiscal year shall be paid for at the rate of the full annual warehouse fee.

(3) Warehouse licenses issued under the Act shall be non-transferable. Such licenses shall automatically terminate upon the transfer or cessation of business by the license holder.

(4) Upon termination of a warehouseman's license by suspension of business, transfer of ownership, revocation of license, or for any other cause, such license shall be immediately surrendered to the Department for cancellation. No refund of license fees shall be made by the Department in the event of such cancellation.

(5) Every warehouseman who discontinues the operation of a public warehouse shall surrender all blank and unused warehouse receipts to the Department for cancellation. No refund of pro rata costs of such receipts shall be made upon such surrender.

(6) All grain warehouses or elevators at one station will be licensed by the Department under one permanent license number. Individual warehouses (including adjoining warehouse buildings or facilities or those structurally connected, or connected by power conveyor, gravity, spout, or other mechanical devices capable of conveying grain from one such building or facility to the other) will be designated by the Department by a suffix letter "A", "B", "C", etc. The applicable assigned suffix number is to be painted on each warehouse when two or more houses or elevators are at one station.

(7)(a) The Department in determining whether certain grain warehouses or elevators should be one station shall take into consideration:

(A) Whether the proposed grain storage facilities are in the same trading area; and

(B) Whether the proposed grain storage facilities can be reasonably audited by the Department.

(b) In determining whether grain storage facilities which it is proposed to consolidate can be reasonably audited by the Department, the following matters will be considered:

(A) Whether all grain storage facilities have the same cutoff for examination of records and physical measure-up;

(B) Accessibility and adequacy of records;

(C) Whether all of the grain storage facilities of a warehouseman in a particular locality are listed in the application.

Stat. Auth.: ORS 586
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 586, f. 7-28-58, ef. 7-25-58; AD 670, f. 6-16-61, ef. 7-1-61; AD 703, f. 5-21-62; AD 877(7-68), f. 4-30-68, ef. 7-1-6; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0120

Marking and Identification of Grain and Storage Facilities

(1) All permanent bins licensed for storage of bulk grain shall be plainly and permanently numbered or lettered; a bin chart diagram showing the locations of the various bins in the storage facility shall be conspicuously posted.

(2) Public warehouses in which identity preserved lots of edible dry beans and dry peas are stored, shall be divided into sections, and each section shall be numbered or lettered in a legible manner.

(3) Field run, identity preserved "edible" dry beans or dry peas received in a public warehouse shall be given a lot number for each and every lot received. Identification tags or cards shall be attached to a sufficient number of bags, boxes, or containers of each lot so as to maintain unquestionable identity of each lot. Such identification tags shall show:

(a) Lot number;

(b) Number of bags or other containers;

(c) Warehouse receipt number, if any.

(4) If a public warehouse is not kept open each weekday, the warehouseman shall keep a written notice conspicuously posted on the door of the public entrance to such warehouse. Such notice shall state the name, address, and telephone number of an accessible person authorized to transact business in the name of the warehouseman.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 586, f. 7-28-58, ef. 7-25-58; AD 712, f. 10-3-62, ef. 10-11-62; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0131

Maintenance of Quality and Quantity of Grain and Transfer Authority

(1) Unless written approval to transfer or forward grain is first obtained pursuant to ORS 586.415, a warehouseman shall maintain at all times in a public warehouse at the station in which the grain was originally deposited for storage, inventories which are of at least the quantity, class, and quality of that which the warehouseman is obligated to deliver under the outstanding warehouse receipts, scale tickets, load slips, or other documentary evidence of deposit.

(2) The written approval and authority required by ORS 586.415 shall contain thereon at least the following:

(a) The name of warehouseman and location of grain warehouse facility;

(b) The amount and kind of grain deposited;

(c) The time period of grain deliveries to be subject to such written document, including the initiation date;

(d) The purpose of the approval or authority (sale, transfer, shipment, etc.);

(e) The signature and address of the depositor of grain.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; AD 901(7-69), f. 5-28-69, ef. 7-1-69; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0136

Load Slips

(1) Each load slip and copy thereof shall contain thereon:

(a) The actual weight of each draft of the grain;

(b) The tare, if any;

(c) The kind of grain deposited;

(d) The name and location of the warehouse;

(e) The name of the depositor;

(f) The date of the deposit of the grain; and

(g) A predesignated printed number for each load or parcel of grain, different from any other number on any load slip given for any other load or parcel of grain. A pre-numbered series of load slips, which conform to good accounting practices, shall be used for warehouse transactions. Also, books of load slips within the series used for this purpose will be made available to state inspectors.

(2) Copies of all load slips shall be retained by the warehouseman for at least three years and shall be filed consecutively together in one place by number.

(3) All persons delivering or withdrawing grain shall be issued pre-numbered load slips by the warehouseman.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0140

Maintenance of Grounds and Physical Plant

(1) Storage facilities shall be of sound construction and shall be maintained in such condition as shall adequately protect at all times stored commodities from the elements, rodents, birds, and injurious vermin.

(2) Windows and other openings used for ventilation, except doors, shall be permanently screened as a protection against rodents and birds.

(3) Doors in exterior walls shall be tight fitting.

(4) Warehouse interiors shall be kept reasonably free of gathered dirt and dust.

(5) Warehouse interiors shall be kept free of all rodents and birds, whether alive or dead, together with all excrement, urine, hair, nesting, feathers, or other evidence of rodent or bird infestation.

(6) Warehouse interiors shall be kept reasonably free of live insect infestations.

(7) Grounds surrounding grain elevators and/or warehouses shall be maintained free from weeds and tall grass, accumulated scrap piles of discarded machinery, paper, rubbish, garbage, and other material which is capable of being used as a place of refuge and breeding ground for rodents.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 586, f. 7-28-58, ef. 7-25-58; AD 712, f. 10-3-62, ef. 10-11-62; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0145

Grain Deposit Ledger

(1) Each warehouseman must maintain a current grain deposit ledger account for each depositor of grain, including therein, grain owned by the warehouseman. Such account shall show at least the following:

(a) The name of the depositor;

(b) Applicable dates of all transactions or postings affecting the account, including load slips, withdrawal, purchase order and/or check number;

(c) The kind and weight of grain and all other information or transactions affecting each account.

(2) Each warehouseman shall currently post all applicable information and data from the load slips and other books of original record to each grain deposit ledger account. The grain deposit ledger accounts must be balanced at least once each month.

(3) Each warehouseman must maintain a Daily Position Record (DPR) which conforms to good accounting practices for grain that is on hand for cleaning or processing, for treating, for shipping by the warehouseman, for the account of the depositor, and for all grains purchased by, or left for, the purpose of sale to the warehouseman. Memorandum agreements or written documents covering such transactions must be attached to, or filed with, the ledger records.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; AD 877(7-68), f. 4-30-68; AD 901(7-69), f. 5-28-69, ef. 7-1-69; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0150

Insurance

(1) The warehouseman shall maintain a printed record of the insurance coverage applicable to grain in storage held as required by ORS 586.315, including copies of current insurance policies, "loss payable" certificates, or other written evidence of insurance encumbrances. Such records, policies, certificates, or other written evidence shall be made available to the Department upon demand, and shall be maintained at the principal place of business of the warehouseman within the state unless otherwise authorized by the Department.

(2) The Department, in auditing grain warehouses as required by the Act, will verify for accuracy, to the nearest report, providing the warehouseman is using the insurance reporting system. Warehousemen not using such system, must insure the entire licensed warehouse capacity.

(3) The warehouseman who cancels any insurance required under ORS 586.315 must give the Department at least ten days' notice prior to such cancellation date. If the warehouseman receives a notice from his insurance company that such company is canceling insurance, the warehouseman within 24 hours (of the next business day) of receipt of such notice shall notify the Department of such action.

(4) In case of fire, flood, explosion or any other event that could cause significant structural damage or inventory losses in a licensed warehouse, the warehouseman shall give immediate notice thereof to the Department. The warehouseman must also give prior notice if there is to be a change of any kind in the ownership of the warehouse, or any change which will affect the storage capacity.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; AD 901(7-69), f. 5-28-69, ef. 7-1-69; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0155

Warehouse Receipts

(1) All warehouse receipts must be pre-numbered within the warehouse station license number assigned by the Department (see OAR 603-032-0100). Such warehouse receipts, both used and unused, must be maintained at the same location where all other grain storage records are maintained. Used warehouse receipts which have been returned to or picked up by the warehouseman must be filed together consecutively and marked "Cancelled". They may be attached to the file copy maintained by the warehouseman if all are handled in the same manner.

(2) A negotiable warehouse receipt and its copy must always accurately reflect and represent the amount of grain in storage. Before any release of grain or any use of grain is permitted, represented by such negotiable warehouse receipt, the warehouseman must obtain and keep such receipt, marking it "Cancelled". A new negotiable or non-negotiable warehouse receipt can then be issued covering the remainder of the grain that will be in storage (see ORS 586.385). (A warehouseman may make an appropriate notation of withdrawal of grain on the depositor's non-negotiable warehouse receipt and on other books of original entry, if desired).

(3) In the event a warehouse receipt is subject to cancellation in accordance with section (1) or (2) of this rule, and is lost, mutilated, or destroyed, then the warehouseman shall obtain an affidavit containing the facts surrounding such loss, mutilation, or destruction, executed by the person responsible for the custody of such warehouse receipt. The affidavit shall be subject to review and approval of the Department and a duplicate original of such affidavit shall be retained in lieu of the warehouse receipt.

(4) In the event a warehouse receipt is outstanding and is lost, mutilated, or destroyed, then the warehouseman shall comply with the provision of ORS 77.6010 (Uniform Commercial Code).

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; AD 901(7-69), f. 5-28-69, ef. 7-1-69; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0160

Trading, Check Payments, and Use of Scales

(1) Trading of depositor's grain is prohibited unless it is carried out by written agreement or written authorization of the depositor.

(2) Cancelled checks which relate to payments made for grain by the warehouseman, shall be available to the Department for auditing purposes.

(3) A warehouseman shall use a licensed functional scale for the weighing of all grains delivered to the warehouse and for the weighing of grains moved or used in feed mills, or for any other movement in or out of grain storage bins or the warehouse.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 712, f. 10-3-62, ef. 10-11-62; DOA 9-1998, f. & cert. ef. 9-21-98

603-032-0165

Written Evidence of Exemption

(1) The written evidence required to be a part of the records of the owner or operator of a grain warehouse facility pursuant to ORS 586.225, shall include at least the following:

(a) The amount and kind of grain subject to such written document;

(b) The time period of grain deliveries to be subject to such written document, including the initiation date;

(c) The purpose of the grain deliveries (Sale to warehouseman, processing, cleaning, etc.);

(d) The terms and basis of payment for said sale, processing, or cleaning.

(2) The written evidence required shall be executed by the owner, or authorized agent, of the grain, and the owner or operator of the grain warehouse facility shall acknowledge acceptance thereon.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 901(7-69), f. 5-28-69, ef. 7-1-69; DOA 9-1998, f. & cert. ef. 9-21-98

Warehouses and Bonds

Warehouses, Bonds and Letters of Credit

603-032-0505

Bond Requirements: Storage Capacity Rating

(1) The amount of the bond required under subsection (1), Section 586.300, Oregon Revised Statutes, and OAR 603-032-0110, shall be a sum equal to the total number of bushels of rated grain storage capacity of the warehouse covered, multiplied by the number of cents herein assigned rounded up to the nearest $1,000:

(a) $.15 per bushel of capacity if provided to the Department an annual financial statement which shall have been audited or reviewed by a certified or licensed public accountant;

(b) $.20 per bushel of capacity if no annual financial statement or audit is submitted and approved.

(2) If at any time it appears, in accordance with the provisions of subsection (5), Section 586.300, Oregon Revised Statutes, that the bond referred to in section (1) of this rule is not sufficient to provide adequate protection to holders of the receipts or load slips of the warehouse or warehouses covered by the bond, the Department may require the filing of an additional bond or bonds.

(3) Other provisions of this section notwithstanding, no bond shall be less than $20,000 and no bond or bonds of any one warehouseman shall total more than $500,000. In lieu of a surety bond, the warehouseman may submit a letter of credit satisfactory to the state Department of Agriculture.

(4) The total storage capacity of any warehouse or warehouses subject to bond shall be determined by the Department.

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 440, f. 6-23-52, ef. 7-1-52; AD 669, f. 6-16-61, ef. 7-1-61; AD 847(19-67), f. 8-24-67, ef. 9-13-67; AD 980(13-72)(Temp), f. & ef. 10-1-72; AD 984(16-72), f. 12-21-72, ef. 1-1-73; AD 994(8-73)(Temp), f. & ef. 8-1-73; AD 1002(16-73), f. 12-5-73, ef. 12-25-73; DOA 9-1998, f. & cert. ef. 9-21-98

Posting of Number

603-032-0510

Posting of License Number

Each warehouseman shall post the warehouse license number assigned to the facility by the Department, on all grain warehouses and elevators, just below the "Oregon Bonded Grain Warehouse" sign, in letters and numerals not less than eight (8) inches high and as follows: "LICENSE NO. _______" (Also see OAR 603-032-0110(6)).

Stat. Auth.: ORS 561.190 & ORS 586.225 - ORS 586.561
Stats. Implemented: ORS 586.225 - ORS 586.561
Hist.: AD 487, f. 6-8-55, ef. 7-1-55; AD 703, f. 5-21-62; DOA 9-1998, f. & cert. ef. 9-21-98

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