AGRICULTURE CODE
CHAPTER 14A. OTHER PUBLIC WAREHOUSE OPERATORS
§ 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, § 1, eff. Sept. 1,
1997. Renumbered from § 14.201 and amended by Acts 2001, 77th
Leg., ch. 1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.204 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.205 by Acts 2001, 77th Leg., ch. 1124, §
1, eff. Sept. 1, 2001.
§ 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 § 14.206 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.207 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.208 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.209 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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.
Added by Acts 2001, 77th Leg., ch. 1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.211 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.212 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.213 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.214 and amended by Acts 2001, 77th Leg., ch.
1124, § 1, eff. Sept. 1, 2001.
§ 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 § 14.216 by Acts 2001, 77th Leg., ch. 1124, §
1, eff. Sept. 1, 2001.
