As Passed by the House 1
122nd General Assembly 4
Regular Session Am. H. B. No. 425 5
1997-1998 6
REPRESENTATIVES THOMPSON-HAINES-DAMSCHRODER-OPFER-HOUSEHOLDER- 8
KREBS-GARCIA-JOHNSON-BRADING-REID-VESPER-BOGGS- 9
CORE-OLMAN-HARRIS-METZGER-LEWIS-SALERNO-SAWYER 10
12
A B I L L
To amend sections 926.01, 926.021, 926.05, 926.06, 14
926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 15
926.32, and 926.99 and to enact sections 926.051 16
and 926.36 of the Revised Code to change the 17
definition of an agricultural commodity handler, 18
to increase the total net worth that an applicant 19
for an agricultural commodity handler's license 20
must maintain, to increase the penalty for 21
engaging in agricultural commodity handling 22
without a license, and to make other revisions 23
to the law governing agricultural commodity 24
handling. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That sections 926.01, 926.021, 926.05, 926.06, 29
926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 926.32, and 30
926.99 be amended and sections 926.051 and 926.36 of the Revised 31
Code be enacted to read as follows: 33
Sec. 926.01. As used in this chapter: 42
(A) "Agricultural commodity" means barley, corn, oats, 44
rye, grain sorghum, soybeans, wheat, sunflower, speltz, and OR 45
any other agricultural crop which the director of agriculture may 47
designate by rule. "Agricultural commodity" does not mean any 48
grain that is purchased for sale as seed. 49
(B) "Agricultural commodity handling" or "handling" means: 51
2
(1) Engaging in or participating in the business of 53
purchasing an agricultural commodity for sale, resale, 54
processing, or for any other use in THE FOLLOWING volumes 55
exceeding ten: 56
(a) IN THE CASE OF PURCHASES MADE FROM PRODUCERS, MORE 58
THAN TWENTY thousand bushels annually; 59
(b) IN THE CASE OF PURCHASES MADE FROM AGRICULTURAL 62
COMMODITY HANDLERS, MORE THAN ONE HUNDRED THOUSAND BUSHELS 63
ANNUALLY;
(c) IN THE CASE OF TOTAL PURCHASES MADE FROM PRODUCERS 66
COMBINED WITH TOTAL PURCHASES MADE FROM HANDLERS, MORE THAN ONE 67
HUNDRED THOUSAND BUSHELS ANNUALLY. 68
(2) Operating a warehouse as a bailee for the receiving, 70
storing, shipping, or conditioning of an agricultural commodity; 71
(3) Receiving into a warehouse an agricultural commodity 73
purchased under a delayed price agreement; 74
(4) PROVIDING MARKETING FUNCTIONS, INCLUDING STORAGE, 76
DELAYED PRICE MARKETING, DEFERRED PAYMENT, FEED AGREEMENTS, OR 77
ANY OTHER MARKETING TRANSACTION WHEREBY CONTROL IS EXERTED OVER 78
THE MONETARY PROCEEDS OF A PRODUCER'S AGRICULTURAL COMMODITIES BY 80
A PERSON OTHER THAN THE PRODUCER.
(C) "Agricultural commodity handler" or "handler" means 82
any person who is engaged in the business of agricultural 83
commodity handling. Any "AGRICULTURAL COMMODITY HANDLER" OR 84
"HANDLER" DOES NOT INCLUDE A person whose purchases of all 85
agricultural commodities do not exceed ten thousand bushels 86
annually and who does not handle agricultural commodities as a 87
bailee is not an AND WHO PURCHASES AGRICULTURAL COMMODITIES IN 88
THE FOLLOWING VOLUMES: 89
(1) TWENTY THOUSAND OR FEWER BUSHELS ANNUALLY FROM 91
PRODUCERS;
(2) ONE HUNDRED THOUSAND OR FEWER BUSHELS ANNUALLY FROM 93
agricultural commodities handler COMMODITY HANDLERS. 94
A PERSON WHO DOES NOT HANDLE AGRICULTURAL COMMODITIES AS A 97
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BAILEE AND WHO ANNUALLY PURCHASES TWENTY THOUSAND OR FEWER
BUSHELS OF AGRICULTURAL COMMODITIES FROM PRODUCERS AND ONE 98
HUNDRED THOUSAND OR FEWER BUSHELS OF AGRICULTURAL COMMODITIES 99
FROM AGRICULTURAL COMMODITY HANDLERS SHALL BE CONSIDERED TO BE AN 101
AGRICULTURAL COMMODITY HANDLER IF THE COMBINED ANNUAL VOLUME OF 102
PURCHASES FROM THE PRODUCERS AND THE AGRICULTURAL COMMODITY
HANDLERS EXCEEDS ONE HUNDRED THOUSAND BUSHELS. 103
(D) "Depositor" means: 105
(1) Any person who delivers an agricultural commodity to a 107
licensed handler for storage, conditioning, shipment, or sale; 108
(2) Any owner or legal holder of a ticket or receipt 110
issued for an agricultural commodity who is a creditor of the 111
licensed handler for the value of the agricultural commodity; 112
(3) Any licensed handler storing an agricultural commodity 114
that he THE LICENSED HANDLER owns solely, jointly, or in common 115
with others in a warehouse owned or controlled by him THE 117
LICENSED HANDLER or any other licensed handler. 119
(E) "Receipt" means a warehouse receipt issued by a 121
licensed handler. 122
(F) "Nonnegotiable receipt" means a receipt on which it is 124
stated that the agricultural commodity received will be delivered 125
to the depositor or to the order of any other person named in the 126
receipt. 127
(G) "Negotiable receipt" means a receipt on which it is 129
stated that the agricultural commodity received will be delivered 130
to the bearer or to the order of any person named in the receipt. 131
(H) "Ticket" means a scale weight ticket, a load slip, or 133
any evidence, other than a receipt, given to a depositor by a 134
licensed handler upon delivery of an agricultural commodity to 135
the handler. 136
(I) "Warehouse" means any building, bin, protected 138
enclosure, or similar premises under the control of a licensed or 139
unlicensed handler used for receiving, storing, shipping, or 140
handling an agricultural commodity. 141
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(J) "Storage" means the deposit of an agricultural 143
commodity into a warehouse either for the account of the licensed 144
handler operating the warehouse or for the account of a 145
depositor. 146
(K) "Producer" means any person who grows an agricultural 148
commodity on land that he THE PERSON owns or leases. 149
(L) "Agent" means any person, other than a producer, who 151
delivers an agricultural commodity to a licensed handler, either 152
for sale or for storage, for the account of the producer. 153
(M) "Agricultural commodity tester" or "tester" means a 155
person who operates a moisture meter and other quality testing 156
devices to determine the quality of an agricultural commodity. 157
(N) "Federally licensed grain inspector" means a person 159
who is licensed by the United States department of agriculture 160
under the "United States Grain Standards Act," 39 Stat. 482 161
(1916), 7 U.S.C. 71, as amended, to test and grade grain, as 162
"grain" is defined in that act. 163
(O) "Bailee" means a person to whom an agricultural 165
commodity is delivered in trust for storage in a warehouse with 166
title remaining in the name of the depositor. 167
(P) "Bailor" means a person who delivers an agricultural 169
commodity to a bailee in trust for storage in a warehouse with 170
title remaining in the name of the depositor. 171
(Q) "Bailment agreement" means a bailor-bailee agreement 173
between a depositor and a licensed handler as stated in the terms 174
of a receipt that is issued for an agricultural commodity in 175
storage and subject to the requirements of this chapter governing 176
the use of a receipt. 177
(R) "Delayed price agreement" means a written executory 179
contract executed by and between a licensed handler and a 180
depositor that covers the sale and transfer of title of an 181
agricultural commodity and states in its written terms the 182
service charges and the method for pricing the commodity at a 183
later date. 184
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(S) "Delayed price marketing" means the sale and transfer 186
of title of an agricultural commodity with the price to be 187
established at a later date according to the terms of a delayed 188
price agreement. 189
(T) "DEFERRED PAYMENT" MEANS THE DEFERRAL OF PAYMENT TO A 192
DEPOSITOR BY A LICENSED HANDLER FOR AN AGRICULTURAL COMMODITY TO 193
WHICH THE LICENSED HANDLER HAS TAKEN TITLE, FOR THE PURPOSE OF 194
DEFERRING INCOME OF THE DEPOSITOR FROM ONE TAX YEAR TO ANOTHER. 195
(U) "FEED AGREEMENT" MEANS A WRITTEN CONTRACT EXECUTED BY 198
AND BETWEEN A LICENSED HANDLER AND A PRODUCER OR DEPOSITOR WHO 199
DELIVERS AN AGRICULTURAL COMMODITY TO THE LICENSED HANDLER FOR 200
STORAGE WHEREBY EACH OF THE FOLLOWING APPLIES: 201
(1) THE PRODUCER OR DEPOSITOR TRANSFERS TITLE TO THE 203
AGRICULTURAL COMMODITY TO THE LICENSED HANDLER IN EXCHANGE FOR A 204
NOMINAL SUM; 205
(2) THE PRODUCER, UPON DELIVERY OF THE AGRICULTURAL 207
COMMODITY TO THE LICENSED HANDLER, BECOMES A CREDITOR OF THE 208
LICENSED HANDLER DUE TO THE LIEN THAT ARISES UNDER SECTION 209
926.021 OF THE REVISED CODE; 211
(3) ALL OR PART OF THE AGRICULTURAL COMMODITY IS RETURNED 214
TO THE PRODUCER AT A LATER DATE AND USED FOR FEED PURPOSES. 215
(V) NOTWITHSTANDING SECTION 1.02 OF THE REVISED CODE, 219
"AND" SHALL NOT BE READ "OR" AND "OR" SHALL NOT BE READ "AND." 220
Sec. 926.021. (A) As used in this section: 229
(1) "Claimant" means a person who is unable to secure 231
satisfaction of financial obligations due from TO WHOM an 232
agricultural commodity handler OWES A FINANCIAL OBLIGATION FOR 234
AGRICULTURAL COMMODITIES OR THE ACTUAL MONETARY PROCEEDS FROM 235
AGRICULTURAL COMMODITIES THAT HAVE BEEN DELIVERED TO THE HANDLER. 236
(2) "Failure" means any of the following involving an 238
agricultural commodity handler: 239
(a) An inability to financially satisfy claimants 241
FINANCIALLY;
(b) A public declaration of insolvency; 243
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(c) A revocation, SUSPENSION, OR CONDITIONAL SUSPENSION of 245
license with outstanding indebtedness to claimants; 247
(d) Nonpayment in the ordinary course of business where a 249
good faith dispute does not exist; 250
(e) No application for license renewal; 252
(f) Denial of license renewal; 254
(g) Voluntarily surrendering a license. 256
(3) "Agricultural commodity assets" involving a failed AN 258
agricultural commodity handler mean MEANS any of the following: 259
(a) All agricultural commodities owned or stored, 261
including agricultural commodities in transit shipped by the 262
failed handler but not yet paid for; 263
(b) Redeposited agricultural commodities; 265
(c) Proceeds from the sale of agricultural commodities due 267
or to become due; 268
(d) The equity less any secured financing directly 270
associated therewith in assets in hedging or speculative margin 271
accounts held by commodity or security exchanges or dealers 272
representing the exchanges, and any moneys due or to become due 273
less any secured financing directly associated therewith from any 274
transactions on the exchanges; 275
(e) Any other unencumbered funds, property, or equity in 277
funds or property, wherever located, that can be directly traced 278
to the sale of agricultural commodities by the failed handler, 279
provided both that the funds, property, or equity in funds or 280
property shall not be considered to be encumbered unless the 281
encumbrance results from good and valuable considerations 282
advanced by any secured party on a good faith basis and that the 283
encumbrance is not the result of the taking of funds, property, 284
or equity in funds or property as additional collateral for an 285
antecedent debt; 286
(f) Any other unencumbered funds, property, or equity in 288
assets. 289
(B) A lien shall exist on all agricultural commodity 291
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assets of a failed AN agricultural commodity handler in favor of 292
any of the following: 294
(1) Claimants, including lenders, who possess receipts 296
covering grain owned or stored by the handler; 297
(2) Claimants who possess written evidence of ownership 299
other than a receipt disclosing a storage obligation of the 300
handler, including tickets; 301
(3) Claimants who surrendered receipts as part of an 303
agricultural commodity sales transaction but were not fully paid 304
FULLY for the agricultural commodity and the handler failed 305
within twenty TWENTY-ONE days after the surrender; 306
(4) Claimants who possess any other written evidence of 308
the sale of agricultural commodities to the failed handler for 309
which they were not fully paid FULLY, INCLUDING THE SALE OF 310
AGRICULTURAL COMMODITIES FOR A NOMINAL SUM UNDER A FEED 311
AGREEMENT.
(C) The lien which THAT shall secure all claims described 313
in division (D) of this section, shall arise, ATTACH TO THE 314
AGRICULTURAL COMMODITY ASSETS OF AN AGRICULTURAL COMMODITY 315
HANDLER, AND BECOME EFFECTIVE at the time of the delivery of the 318
agricultural commodity for sale OR FOR STORAGE UNDER A BAILMENT 319
AGREEMENT, commencement of the storage obligation, or when funds 320
are advanced by the lender, and shall terminate when the 321
liability of the agricultural commodity handler to the claimant 322
is discharged, provided that the priority of each lien among the 323
respective claimants shall not relate to the date the claim 324
arises but shall be governed by the priorities established in 325
division (D) of this section. The IN THE EVENT OF A FAILURE, THE 326
lien claims of all claimants shall be considered to be assigned 327
by operation of this section to the department of agriculture, 328
and in the event of a failure and subsequent liquidation, the 329
lien shall transfer over to assets or proceeds of assets either 330
received or liquidated by the department of agriculture. 331
(D) In EXCEPT AS PROVIDED IN DIVISION (E) OF THIS SECTION, 333
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IN the event of a failure, the director of agriculture shall 335
POSSESS EXCLUSIVE AUTHORITY TO enforce the lien claims and
allocate the proceeds as follows: 337
(1) First priority against all agricultural commodity 339
assets shall be the following: 340
(a) Claimants, including lenders, who possess receipts 342
covering grain owned or stored by the agricultural commodity 343
handler; 344
(b) Claimants who possess written evidence of ownership 346
other than receipts disclosing a storage obligation of the 347
handler, including tickets; 348
(c) Claimants who surrendered receipts as part of an 350
agricultural commodity transaction, but were not fully paid for 351
the agricultural commodity and the handler failed within 352
twenty-one days after the surrender. 353
(2) Second priority against all agricultural commodity 355
assets shall be to claimants who possess written evidence of the 356
sale of an agricultural commodity, including, but not limited to, 358
tickets, delayed price agreements, or similar agricultural 359
commodity delivery contracts who completed delivery and pricing 360
within thirty days immediately prior to the failure of the 361
handler. 362
(3) To the extent not necessary to satisfy first and 364
second priority claimants, all other claimants who possess 365
written evidence of the sale of agricultural commodities to the 366
failed handler shall participate in the pro rata distribution of 367
the remainder of the agricultural commodity assets in an amount 368
not to exceed the value of their EACH claim. 369
(E) In the event that any adversary proceeding is 371
commenced to recover agricultural commodity assets upon which the 372
lien imposed in this section is imposed and the department of 373
agriculture declines to enter the proceeding, the director of 374
agriculture, upon application to him THE DIRECTOR by any 375
claimant, shall assign to the claimant the applicable lien to 377
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permit the claimant to pursue his THE CLAIMANT'S lien in the 378
adversary proceeding to the extent the action will not delay the 380
resolution of the proceeding, the prompt liquidation of the 381
assets, or the ultimate distribution of the assets of TO all 382
claimants.
Sec. 926.05. (A) Each person desiring to obtain or renew 391
a handler's license shall file an application annually with the 392
director of agriculture at such times, on such forms, and 393
containing such information as he THE DIRECTOR prescribes, 395
INCLUDING, IF APPLICABLE, THE APPOINTMENT OF A STATUTORY AGENT 396
UNDER SECTION 926.051 OF THE REVISED CODE.
(B) Each application for a license or license renewal 398
shall be accompanied by an application fee of two hundred dollars 399
for the first facility operated by the applicant plus one hundred 400
dollars for each additional facility operated by the same 401
applicant and by an examination fee, established by rule of the 402
director pursuant to section 926.02 of the Revised Code, for each 403
facility operated by the applicant. "Facility" means all 404
warehouse storage located on one premises, including any 405
additional warehouse storage located within one thousand yards of 406
that premises. The director may charge fees for examinations in 407
an amount not to exceed those fees charged by the United States 408
department of agriculture for comparable examinations. 409
The director shall deposit all fees collected under this 411
section in the commodity handler regulatory program fund created 412
in section 926.19 of the Revised Code. 413
(C) The director shall approve or reject each application 415
for a license within fifteen days after receipt thereof, provided 416
that such application is in proper form and contains the 417
information required under division (A) of this section. A 418
rejection of an application shall be accompanied by a statement 419
from the director of the additional requirements necessary for a 420
license. The applicant may resubmit his THE application without 421
payment of any additional fee. 422
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(D) A handler's license shall expire on the date 424
prescribed by rule of the director. Whenever the director 425
considers it advisable to cancel the unexpired portion of an 426
outstanding license in order to renew it according to a new or 427
existing system of expiration dates, he THE DIRECTOR shall refund 429
to the handler the unexpired portion of the fees paid under 430
division (B) of this section. Whenever the director issues an 431
initial license on a date that does not conform to the existing 432
system, he THE DIRECTOR shall issue the license for whatever A 434
period of time, not less than six nor more than eighteen months, 436
that makes it THE DATE conform to the existing system. The 438
application fee for that initial license shall be proportionate 439
to the fee for a one-year license.
(E) An application for renewal of a handler's license 441
shall be filed with the director not later than thirty days 442
before the current license expires. An applicant who fails to 443
file a renewal application in time shall pay a late fee of one 444
dollar for each day the application is late or fifteen dollars, 445
whichever is greater. A renewal license shall not be issued 446
until a late fee that is due has been paid. 447
(F) The director, with the approval of the commodity 449
advisory commission, may revoke or refuse to issue or renew a 450
handler's license if any of the following occurred within five 451
years before the application for the license or renewal was 452
filed: 453
(1) The applicant, or the spouse, parent, sibling, or 455
child of the applicant, or a manager employed by the applicant, 456
or any other individual materially involved in the agricultural 457
commodity handling business of the applicant was a principal in a 458
receivership or insolvency that resulted in losses to creditors 459
or to the agricultural commodity depositors fund established in 460
section 926.16 of the Revised Code; 461
(2) The applicant pled guilty to or was convicted of any 463
felony or charge of embezzlement under the laws of this state, 464
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any other state, or of the United States; 465
(3) The applicant made a delivery of commodities not 467
authorized under this chapter; 468
(4) The applicant's license under the "United States 470
Warehouse Act," 39 Stat. 486 (1916), 7 U.S.C. 241, as amended, 471
was revoked or canceled due to a violation of that act. 472
Sec. 926.051. (A) AN APPLICANT FOR A HANDLER'S LICENSE OR 475
RENEWAL ISSUED UNDER SECTION 926.05 OF THE REVISED CODE WHO DOES 477
NOT CONDUCT BUSINESS AT AN ADDRESS IN THIS STATE AT WHICH THE 478
APPLICANT USUALLY CAN BE CONTACTED SHALL INCLUDE WITH THE 479
APPLICATION A WRITTEN APPOINTMENT OF AN AGENT, SOMETIMES REFERRED 480
TO AS A "STATUTORY AGENT," UPON WHOM ANY PROCESS, NOTICE, OR 481
DEMAND MAY BE SERVED. THE APPOINTMENT SHALL BE ACCOMPANIED BY A 482
WRITTEN ACCEPTANCE OF THE APPOINTMENT SIGNED BY THE AGENT. THE 483
AGENT MAY BE A NATURAL PERSON WHO IS A RESIDENT OF THIS STATE OR 484
A CORPORATION WHOSE PRINCIPAL PLACE OF BUSINESS IS LOCATED IN 485
THIS STATE. THE APPOINTMENT SHALL BE ON SUCH FORMS AND CONTAIN 486
SUCH INFORMATION AS THE DIRECTOR OF AGRICULTURE PRESCRIBES. 487
FAILURE TO COMPLY WITH THIS DIVISION IS GROUNDS FOR REJECTION OF 488
THE APPLICATION UNDER DIVISION (C) OF SECTION 926.05 OF THE 491
REVISED CODE. 492
(B)(1) IF AN AGENT REMOVES FROM THE STATE OR RESIGNS, OR 495
IF THE APPLICANT REVOKES THE AGENT'S APPOINTMENT, THE APPLICANT 496
IMMEDIATELY SHALL NOTIFY THE DIRECTOR IN WRITING NOT LATER THAN 497
THIRTY DAYS PRIOR TO THE REMOVAL, RESIGNATION, OR REVOCATION. IF 498
AN AGENT DIES, THE APPLICANT IMMEDIATELY SHALL NOTIFY THE 499
DIRECTOR IN WRITING. PRIOR TO THE REMOVAL, RESIGNATION, OR 500
REVOCATION AND NOT LATER THAN THIRTY DAYS AFTER THE DEATH, THE 501
APPLICANT SHALL APPOINT ANOTHER AGENT AND FILE WITH THE DIRECTOR 502
A WRITTEN APPOINTMENT OF THE AGENT, ALONG WITH A WRITTEN 503
ACCEPTANCE OF THE APPOINTMENT SIGNED BY THE AGENT. 504
(2) IF THE AGENT'S ADDRESS CHANGES FROM THAT APPEARING ON 506
THE APPLICATION, THE APPLICANT, NOT LATER THAN THIRTY DAYS PRIOR 507
TO THE ADDRESS CHANGE, SHALL FILE WITH THE DIRECTOR A WRITTEN 508
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STATEMENT SETTING FORTH THE NEW ADDRESS, ALONG WITH ANY OTHER 509
INFORMATION THE DIRECTOR REQUESTS. 510
(C) FAILURE TO COMPLY WITH DIVISION (B) OF THIS SECTION IS 514
GROUNDS FOR SUSPENSION OR CONDITIONAL SUSPENSION OF A HANDLER'S 515
LICENSE, WITHOUT PRIOR HEARING, UNDER SECTION 926.10 OF THE 516
REVISED CODE. 517
Sec. 926.06. (A) The director of agriculture may issue a 526
handler's license, or renewal thereof, upon the payment of the 527
prescribed application fee, if the director is satisfied that the 528
applicant meets the standards of financial responsibility 529
required under this section and has complied with this chapter 530
and the rules adopted under it. 531
(B) Each (1) ON THE EFFECTIVE DATE OF THIS AMENDMENT, 533
EACH applicant for a handler's license, or renewal thereof, shall 535
have and maintain current assets equal to or greater than current 536
liabilities and a total net worth of EQUAL TO at least ten cents 538
per bushel for the total number of bushels of agricultural 539
commodities that he THE APPLICANT handled during the immediately 540
preceding twelve-month period to cover any indebtedness arising 541
from his THE APPLICANT'S operations as a licensed handler. If 543
ONE YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THE TOTAL 545
NET WORTH REQUIREMENT SHALL INCREASE TO ELEVEN CENTS PER BUSHEL. 546
FOR THE NEXT FOUR YEARS, THE REQUIREMENT SHALL CONTINUE TO 547
INCREASE BY ONE CENT PER BUSHEL EACH YEAR ON THE ANNIVERSARY OF 548
THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE YEARS AFTER 549
THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S TOTAL NET 550
WORTH SHALL BE EQUAL TO AT LEAST FIFTEEN CENTS PER BUSHEL FOR THE
TOTAL NUMBER OF BUSHELS OF AGRICULTURAL COMMODITIES THAT THE 551
APPLICANT HANDLED DURING THE IMMEDIATELY PRECEDING TWELVE-MONTH 552
PERIOD. 553
(2) ON THE EFFECTIVE DATE OF THIS AMENDMENT, IF an 555
applicant is applying for a handler's license for the first time 556
and did not handle any agricultural commodities during the 557
immediately preceding twelve-month period, he THE APPLICANT shall 558
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have an allowable total net worth of at least twenty-five 560
thousand dollars for that purpose. No TO COVER ANY INDEBTEDNESS 562
ARISING FROM THE APPLICANT'S OPERATIONS AS A LICENSED HANDLER. 563
ONE YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THIS
ALLOWABLE TOTAL NET WORTH REQUIREMENT SHALL INCREASE TO THIRTY 564
THOUSAND DOLLARS. FOR THE NEXT FOUR YEARS, THE REQUIREMENT SHALL 566
CONTINUE TO INCREASE BY FIVE THOUSAND DOLLARS EACH YEAR ON THE 567
ANNIVERSARY OF THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE 568
YEARS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S 569
TOTAL NET WORTH SHALL BE AT LEAST FIFTY THOUSAND DOLLARS. 570
(3) ON THE EFFECTIVE DATE OF THIS AMENDMENT, NO person 573
shall be licensed as a handler unless he THE PERSON has an 574
allowable total net worth of at least twenty-five thousand
dollars. Any ONE YEAR AFTER THE EFFECTIVE DATE OF THIS 576
AMENDMENT, THIS ALLOWABLE TOTAL NET WORTH REQUIREMENT SHALL 577
INCREASE TO THIRTY THOUSAND DOLLARS. FOR THE NEXT FOUR YEARS, 578
THE REQUIREMENT SHALL CONTINUE TO INCREASE BY FIVE THOUSAND 579
DOLLARS EACH YEAR ON THE ANNIVERSARY OF THE EFFECTIVE DATE OF 580
THIS AMENDMENT, SO THAT FIVE YEARS AFTER THE EFFECTIVE DATE OF 581
THIS AMENDMENT, THE PERSON'S TOTAL NET WORTH SHALL BE AT LEAST 582
FIFTY THOUSAND DOLLARS. 583
(4) ON THE EFFECTIVE DATE OF THIS AMENDMENT, ANY 585
deficiency in required total net worth may be compensated for by 587
an indemnity agreement executed by a person pledging personal 588
assets for the benefit of commodity creditors should the licensed 589
handler default in his THE LICENSED HANDLER'S obligations to the 590
creditors; a bond issued by a corporate surety company that is 591
authorized to do business under the laws of this state; or, at 592
the director's discretion, an irrevocable letter of credit issued 593
by a bank or other lending institution that is authorized by this 594
state or the United States to issue such letters of credit and is 595
subject to service of process in this state for any suit on the 596
bond or letter of credit. AN INDEMNITY AGREEMENT EXECUTED BY A 598
PERSON PLEDGING PERSONAL ASSETS SHALL BE ACCOMPANIED BY FINANCIAL 599
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STATEMENTS THAT REFLECT THE PERSON'S FINANCIAL POSITION AS AN 600
INDIVIDUAL AND COMPLY WITH THE REQUIREMENTS OF DIVISION (C) OF 602
THIS SECTION. A bond shall be made to the treasurer of the state 604
of Ohio to be deposited in the agricultural commodity depositors 605
fund created under section 926.16 of the Revised Code for the 606
benefit of any person who may be injured by the handler's failure 607
to meet obligations arising under this chapter. A letter of 608
credit shall be issued for the benefit of the department of 609
agriculture and the agricultural commodity depositors fund. 610
In (5) THE DIRECTOR SHALL ADOPT RULES IN ACCORDANCE WITH 613
CHAPTER 119. OF THE REVISED CODE SPECIFYING THE ASSETS FOR WHICH 616
CREDIT MAY BE GIVEN IN determining AN APPLICANT'S total net 617
worth, credit may be given for fixed assets such as buildings, 618
machinery, and equipment, in the amount of the insured value of 619
such assets under a policy of insurance against loss or damage 621
or, at the discretion of the director, in the amount of their 622
current market value as determined by an accredited rural 623
appraiser or an appraiser certified by the American appraisal 625
institute. The appraiser shall be completely independent of any 627
relationship with the handler. Capital stock shall not be 628
considered a liability for the purpose of determining total net 629
worth. Regardless.
(6) ON THE EFFECTIVE DATE OF THIS AMENDMENT, REGARDLESS of 631
the total number of bushels of agricultural commodities that he 633
AN APPLICANT handled during the immediately preceding 635
twelve-month period, an THE applicant's total net worth need not 637
exceed A MAXIMUM OF three hundred thousand dollars. ONE YEAR 639
AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THIS MAXIMUM TOTAL 640
NET WORTH NEED NOT EXCEED THREE HUNDRED THIRTY THOUSAND DOLLARS. 641
FOR THE NEXT FOUR YEARS, THIS MAXIMUM TOTAL NET WORTH SHALL 642
CONTINUE TO INCREASE BY THIRTY THOUSAND DOLLARS EACH YEAR ON THE 643
ANNIVERSARY OF THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE 644
YEARS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S 645
TOTAL NET WORTH NEED NOT EXCEED FOUR HUNDRED FIFTY THOUSAND 646
15
DOLLARS.
(C) In order for the director to determine if an applicant 648
meets the standards of financial responsibility required under 649
division (B) of this section, the applicant for a handler's 650
license, or renewal of a handler's license, shall submit a 651
current financial statement STATEMENTS THAT HAVE BEEN prepared IN 653
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THAT 654
HAVE BEEN AUDITED OR REVIEWED by a qualified person who is not 655
directly associated with the applicant's business AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT. The financial statement STATEMENTS 657
shall consist of a THE APPLICANT'S balance sheet showing the 658
current and deferred assets and liabilities of the applicant, a, 659
INCOME statement of income, a statement of retained earnings OR 661
STATEMENT OF STOCKHOLDER'S EQUITY, a AND statement of changes in 663
financial position CASH FLOWS, and whatever notes are sufficient 665
to explain the details contained in the financial statement 666
TOGETHER WITH ANY EXPLANATORY FOOTNOTES OR SUPPLEMENTARY
INFORMATION ACCOMPANYING THESE STATEMENTS AND WITH THE 667
INDEPENDENT ACCOUNTANT'S REPORT ON THE STATEMENTS. 668
The financial statement STATEMENTS accompanying an 670
applicant's original application shall show a statement closing 671
date that is BE FOR A YEAR ENDING within six months of BEFORE the 673
date of application. Thereafter, the applicant applying for 675
renewal shall submit an annual statement SUCH STATEMENTS not 677
later than ninety days after the close END of his business THE 678
year COVERED BY THE STATEMENTS.
The director may require an applicant for a handler's 680
license, or renewal of a handler's license, to submit a financial 681
statement prepared STATEMENTS AUDITED by a AN INDEPENDENT 683
certified public accountant licensed under the laws of this 684
state, and may require the attachment to the statement of the 685
accountant's opinion of the applicant's financial status based on 686
his examination of the records conducted in accordance with 687
generally accepted auditing standards if the director determines 688
16
that the first financial statement STATEMENTS INITIALLY submitted 689
under this division is ARE incomplete or otherwise 691
unsatisfactory.
(D) The director may prepare and publish statistical 693
abstracts of information obtained under this section without 694
disclosing details that would identify a particular applicant 695
with particular statistics. Such information OTHERWISE is 696
otherwise confidential for purposes of section 102.03 of the 698
Revised Code, and records of the department of agriculture 699
containing such information are not otherwise public records 700
under section 149.43 of the Revised Code. 701
Sec. 926.10. The director of agriculture may, by order, 710
MAY refuse to grant or may suspend or conditionally suspend a 712
handler's license, without prior hearing, when he THE DIRECTOR 713
determines that there is reasonable cause to believe that the 715
applicant or licensee: 716
(A) Has failed to maintain the insurance coverage required 718
under section 926.07 of the Revised Code; 719
(B) Has failed to maintain accurate and complete records 721
and accounts as required under section 926.11 of the Revised 722
Code; 723
(C) Has failed to charge, collect, or remit the fee 725
required under division (B) of section 926.16 of the Revised 726
Code; 727
(D) Has refused to allow the director or his THE 729
DIRECTOR'S authorized representative to examine, at a reasonable 731
time, his THE APPLICANT'S OR LICENSEE'S accounting records, 733
accounts, agricultural commodity inventories, or warehouse; 734
(E) Does not have in his possession POSSESS sufficient 736
agricultural commodities to cover the outstanding receipts or 737
tickets issued or assumed by him THE APPLICANT OR LICENSEE under 738
bailment agreements; 739
(F) Has issued a receipt in violation of this chapter or 741
any rules adopted under it; 742
17
(G) Does not have the net assets specified in division (B) 744
of section 926.06 of the Revised Code or has failed to obtain a 745
bond or other protection for any deficiency in required net 746
assets as provided in that division; 747
(H) Does not have his THE obligations for agricultural 749
commodities purchased under delayed price agreements secured or 750
represented as required under division (B) or (C) of section 751
926.29 of the Revised Code; 752
(I) DOES NOT SUBMIT FINANCIAL STATEMENTS THAT COMPLY WITH 755
THE REQUIREMENTS OF DIVISION (C) OF SECTION 926.06 OF THE REVISED 757
CODE WITHIN THE APPLICABLE TIME PERIOD SPECIFIED IN THAT 759
DIVISION;
(J) DOES NOT NOTIFY THE DIRECTOR OF A STATUTORY AGENT'S 762
CHANGE OF ADDRESS OR OF THE DEATH, REMOVAL, RESIGNATION, OR 763
REVOCATION OF THE APPOINTMENT OF A STATUTORY AGENT OR DOES NOT 764
APPOINT ANOTHER AGENT IN ACCORDANCE WITH SECTION 926.051 OF THE 766
REVISED CODE. 767
The applicant or licensee to whom a denial or, suspension, 770
or conditional suspension order is issued shall be afforded a 771
hearing in accordance with Chapter 119. of the Revised Code, 772
after which the director shall issue or deny the license applied 773
for in the pending application or reinstate or revoke the 774
suspended or conditionally suspended license. The director may 775
suspend or, conditionally suspend, or revoke a license after a 777
hearing held in accordance with Chapter 119. of the Revised Code 778
for any other violations of this chapter or any rules adopted 779
under it. 780
The director shall cause a notice to be posted on the 782
property of a person whose license has been suspended, 783
conditionally suspended, or revoked stating the limitations or 784
restrictions imposed on the person in the handling of 785
agricultural commodities as a result of the suspension, 786
conditional suspension, or revocation. The notice shall not be 787
removed from the property without written authorization from the 788
18
director. 789
Sec. 926.16. (A) There is hereby created in the state 798
treasury the agricultural commodity depositors fund. The state 799
shall not be held liable for any claims presented against the 800
fund under section 926.18 of the Revised Code. The fund shall 801
consist of a per-bushel fee remitted by licensed handlers under 802
this section, any sums that the director of agriculture may 803
collect by any legal action on behalf of the fund, and any 804
property or securities acquired through the use of moneys in the 805
fund. The moneys collected under this section and deposited in 806
the fund shall be used exclusively to indemnify depositors as 807
provided in section 926.18 of the Revised Code and for no other 808
purpose. 809
(B) All licensed handlers shall remit such THE fee as is 811
determined by the director in accordance with section 926.17 of 812
the Revised Code on: 813
(1) All agricultural commodities delivered to them for 815
storage under a bailment agreement or for sale, exchange, or 816
negotiation or solicitation of sale by depositors who produced 817
them or caused them to be produced; 818
(2) All agricultural commodities delivered to them for 820
storage under a bailment agreement, regardless of who produced 821
the commodities, if a receipt is to be issued for the 822
commodities; 823
(3) All agricultural commodities that are being stored by 825
licensed handlers who own them solely, jointly, or in common with 826
others and who are issuing a receipt for them in accordance with 827
section 926.25 of the Revised Code. The maximum number of 828
bushels on which a licensed handler shall be required to pay the 829
fee under division (B)(3) of this section between the first day 830
of July and the thirtieth day of June of any marketing year shall 831
be the greatest number of bushels of all commodities for which 832
receipts are outstanding at any one time during that period. 833
(4) ALL AGRICULTURAL COMMODITIES THAT ARE NOT INVOLVED IN 835
19
A TRANSACTION DESCRIBED IN DIVISION (B)(1), (2), OR (3) OF THIS 836
SECTION AND THE MONETARY PROCEEDS OF WHICH ARE CONTROLLED BY A 837
HANDLER WHO IS NOT INVOLVED IN THE PRODUCTION OF THE COMMODITIES 839
AND WHO SERVES AS AN INTERMEDIARY BETWEEN THE PRODUCER AND A 840
HANDLER RECEIVING THE COMMODITIES. IN SUCH A SITUATION, THE
HANDLER RESPONSIBLE FOR PAYING THE PRODUCER SHALL REMIT THE FEE. 841
(C) All licensed handlers shall account for and remit 843
moneys under division (B) of this section to the director in such 844
manner and using such forms as the director shall prescribe by 845
rule. 846
(D) All disbursements from the fund shall be paid by the 848
treasurer of state pursuant to vouchers authorized by the 849
director. 850
(E) All interest earned by the fees collected under this 852
section shall be credited to the fund and, at the request of the 853
director of agriculture and to the extent necessary to pay the 854
examination and administrative costs of this chapter as provided 855
in section 926.19 of the Revised Code, may be transferred by the 856
director of budget and management to the commodity handler 857
regulatory program fund created in that section. 858
Sec. 926.18. (A) When a depositor has made a demand for 867
settlement of an obligation concerning an agricultural commodity 868
on which a fee was required to be remitted under section 926.16 869
of the Revised Code and the licensed handler has failed to honor 870
the demand, the depositor, after providing the director of 871
agriculture or his THE DIRECTOR'S authorized representative with 872
evidence of his THE DEPOSITOR'S demand and the dishonoring of his 874
THAT demand, may file a claim with the director NOT LATER THAN 875
SIX MONTHS AFTER DISHONOR OF THE DEMAND for indemnification of 876
his THE DEPOSITOR'S damages, from the agricultural commodity 877
depositors fund, to be measured as follows: 878
(1) The commodity advisory commission created in section 880
926.32 of the Revised Code shall establish the dollar value of 881
the loss incurred by a depositor holding a receipt or a ticket 882
20
for agricultural commodities on which a fee was required and that 883
he THE DEPOSITOR delivered to the handler under a delayed price 884
agreement or under a, bailment agreement, OR FEED AGREEMENT, OR 886
THAT THE DEPOSITOR DELIVERED TO THE HANDLER BEFORE DELIVERY WAS 887
DUE UNDER A CONTRACT OR OTHER AGREEMENT BETWEEN THE DEPOSITOR AND 888
HANDLER. The value shall be based on the fair market price being 890
paid to producers by handlers for the commodities on the date on 891
which the director received notice that the receipt or ticket was 892
dishonored by the handler. All depositors filing claims under 893
this division shall be bound by the value determined by the 894
commission.
(2) The dollar value of the loss incurred by a depositor 896
who has sold or delivered for sale, exchange, or solicitation or 897
negotiation for sale agricultural commodities on which a fee was 898
required and who is a creditor of the handler for all or a part 899
of the value of the commodities shall be based on the amount 900
stated on the obligation on the date of the sale. 901
(B) The agricultural commodity depositors fund shall be 903
liable to a depositor for any moneys that are not recovered 904
through other legal and equitable remedies as follows: 905
(1) For commodities stored with a licensed handler under a 907
bailment agreement for one hundred per cent of his THE 908
DEPOSITOR'S loss as determined under division (A)(1) of this 909
section;
(2) For commodities stored DEPOSITED with a licensed 911
handler under an agreement other than a bailment agreement for 913
one hundred per cent of the first ten thousand dollars of his THE 914
DEPOSITOR'S loss and eighty per cent of the remaining dollar 915
value of his THAT loss as determined under divisions (A)(1) and 916
(2) of this section. The aggregate amount recovered by a 918
depositor under all remedies shall not exceed one hundred per 919
cent of the value of his THE DEPOSITOR'S loss. If the moneys 920
recovered by a depositor under all remedies exceed one hundred 921
per cent of the value of his THE DEPOSITOR'S loss, the depositor 922
21
shall reimburse the fund in the amount that exceeds the value of
his THAT loss. 923
(C) The director, with the approval of the commodity 925
advisory commission, shall determine the validity of all claims 926
presented against the fund. A claim filed under this section for 927
losses on agricultural commodities other than commodities stored 928
under a bailment agreement shall not be valid unless the 929
depositor has made a demand for settlement of the obligation 930
within twelve months after the commodities are priced or 931
delivered for sale, whichever occurs later. Any depositor whose 932
claim has been refused by the director and the commission may 933
appeal the refusal to either TO the court of common pleas of 934
Franklin county or the court of common pleas of the county in 935
which the depositor resides. 936
The director shall provide for payment from the fund to any 938
depositor whose claim has been found to be valid. 939
(D) If at any time the fund does not contain sufficient 941
assets to pay valid claims, the director shall hold those claims 942
for payment until the fund again contains sufficient assets. 943
Claims against the fund shall be paid in the order in which they 944
are presented and found to be valid. 945
(E) If a depositor files an action for legal or equitable 947
remedies in a state or federal court having jurisdiction in those 948
matters that includes a claim against agricultural commodities 949
upon which the depositor may file a claim against the fund at a 950
later date, he THE DEPOSITOR ALSO shall also file with the 952
director a copy of the action filed with the court. 953
In the event of payment of a loss under this section, the 955
director shall be subrogated to the extent of the amount of any 956
payments to all rights, powers, privileges, and remedies of the 957
depositor against any person regarding the loss. 958
The depositor shall render all necessary assistance to aid 960
the director in securing the rights granted in this section. No 961
action or claim initiated by the depositor and pending at the 962
22
time of payment from the fund may be compromised or settled 963
without the consent of the director. 964
(F) If, prior to the effective date of this amendment JUNE 967
20, 1994, a lawsuit, adversary proceeding, or other legal 968
proceeding is brought against a depositor to recover money or
payments from funds to which a depositor has a right of 969
indemnification under this section, and the depositor retains 970
legal counsel resulting in a cost or expense to the depositor, 971
upon the rendering of a judgment or other resolution of the 972
lawsuit, adversary proceeding, or other legal proceeding, the 973
director, in his THE DIRECTOR'S discretion and with the approval 974
of the commodity advisory commission, may authorize
indemnification from the fund for attorney's fees paid by the 975
depositor. Any claim made by a depositor for the payment of 976
attorney's fees under this division shall be made in the same 977
manner as a claim under division (A) of this section. 978
Attorney's fees payable under this division shall be 980
limited to the actual hourly fee charged or one hundred dollars 981
per hour, whichever is less, and to a total maximum amount of 982
three hundred dollars.
Sec. 926.19. (A) There is hereby created in the state 991
treasury the commodity handler regulatory program fund. The 992
moneys in the fund shall be used to pay the examination and 993
administrative costs of this chapter and shall consist of: 994
(1) All revenues collected by the director of agriculture 996
from distribution of the receipt forms under division (B) of 997
section 926.20 of the Revised Code and such other forms and 998
registration books as the director may require by rule for the 999
administration of this chapter; 1,000
(2) The application and examination fees collected under 1,002
division (B) of section 926.05 of the Revised Code; 1,003
(3) The agricultural commodity tester certificate fees 1,005
collected under division (B) of section 926.30 of the Revised 1,006
Code; 1,007
23
(4) Interest income transferred from the agricultural 1,009
commodity depositors fund under section 926.16 of the Revised 1,010
Code; 1,011
(5) ALL FINES, PENALTIES, AND COSTS, EXCEPT COURT COSTS, 1,013
THAT ARE COLLECTED UNDER SECTION 926.99 OF THE REVISED CODE IN 1,014
CONSEQUENCE OF A VIOLATION OF THIS CHAPTER; 1,015
(6) ALL SUMS COLLECTED BY THE DIRECTOR OF AGRICULTURE 1,017
UNDER A CONTRACT DESCRIBED IN SECTION 926.36 OF THE REVISED CODE. 1,018
(B) The examination and administrative costs of this 1,020
chapter shall be computed by the director not later than the 1,021
thirty-first day of December of each even-numbered year to cover 1,022
the biennium that begins on the following first day of July. The 1,023
commodity advisory commission created in section 926.32 of the 1,024
Revised Code shall approve, and may amend, the examination and 1,025
administrative costs. The commission's decision shall be binding 1,026
on the director. The commission may also at any time MAY approve 1,028
for presentation to the controlling board a request to increase 1,029
or decrease the appropriation authority for the biennial 1,030
examination and administrative costs if it determines that an 1,031
increase or decrease in the cost is necessary to carry out the 1,032
purpose of this chapter. 1,033
(C) If at any time the moneys deposited in the fund, 1,035
including interest income transferred from the agricultural 1,036
commodity depositors fund under section 926.16 of the Revised 1,037
Code, are not sufficient to pay the examination and 1,038
administrative costs of this chapter, the director shall request 1,039
an appropriation from the general revenue fund to pay those 1,040
costs. 1,041
Sec. 926.29. (A) A delayed price agreement is an 1,050
executory contract which THAT shall be in such a form and contain 1,052
such terms as the director of agriculture shall adopt by rule 1,053
under Chapter 119. of the Revised Code. The agreement shall be 1,054
executed by and between the licensed handler and the depositor or 1,055
by their authorized representatives not later than fifteen days 1,056
24
after the first delivery of an agricultural commodity is received 1,057
for delayed pricing under the agreement. The handler shall 1,058
maintain a file of executed agreements that are available for 1,059
inspection at any reasonable time by the director or his THE 1,060
DIRECTOR'S designated representative. The handler ALSO shall 1,062
also keep records and ledgers the director considers necessary to 1,064
document the handler's obligation to the depositor under a 1,065
delayed price agreement. He THE HANDLER ALSO shall also provide 1,066
reports, forms, and other evidence the director shall adopt by 1,068
rule to document the storage and marketing of commodities under 1,069
the delayed price agreement.
(B) Except SUBJECT TO THE LIEN THAT ATTACHES UNDER SECTION 1,071
926.021 OF THE REVISED CODE AND EXCEPT as otherwise provided in 1,072
division (C) of this section, a licensed handler who purchases 1,073
any agricultural commodity under a delayed price agreement AT ALL 1,074
TIMES shall at all times maintain the commodity, rights in the 1,076
commodity, proceeds from the sale of the commodity, or a 1,077
combination of the commodity, rights, and proceeds equal to at 1,078
least ninety per cent of the value of his THE HANDLER'S 1,079
obligation for all commodities that he THE HANDLER has purchased 1,080
that are not priced under delayed price agreements. The 1,081
obligation shall be secured or represented by one or more of the 1,082
following: 1,083
(1) Maintenance of the commodity in storage in the 1,085
handler's warehouse; 1,086
(2) Rights in commodities as evidenced by a receipt or 1,088
ticket for storage of the commodities under a bailment agreement 1,089
in another warehouse approved by the director; 1,090
(3) Proceeds from the sale of commodities as evidenced or 1,092
represented by one or more of the following: 1,093
(a) Cash on hand or held on account in a state or 1,095
federally licensed financial institution or a lending agency of 1,096
the farm credit administration; 1,097
(b) Short-term investments held in time accounts with 1,099
25
state or federally licensed financial institutions or a lending 1,100
agency of the farm credit administration; 1,101
(c) Balances in commodity margin accounts; 1,103
(d) Commodities sold and shipped by the handler under 1,105
delayed price agreements that have not been priced less any 1,106
payments or advances that have been received by the handler; 1,107
(e) Such other evidence of unencumbered assets as may be 1,109
acceptable to the director, including an irrevocable letter of 1,110
credit. 1,111
(C) A IN ADDITION TO THE LIEN THAT ATTACHES UNDER SECTION 1,113
926.021 OF THE REVISED CODE, A depositor who sells an 1,114
agricultural commodity to a licensed handler under a delayed 1,115
price agreement may, upon giving notice to the handler either at 1,116
or prior to the time of delivery, MAY demand as security for 1,117
payment for the commodity an amount that, at the time of 1,118
delivery, is equal to one hundred per cent of the national loan 1,119
rate value of the commodity under the United States department of 1,120
agriculture price support program, or seventy-five per cent of 1,121
the average price being paid for the commodity in the state on 1,122
the date of demand as published by the market news service of the 1,123
department of agriculture, whichever is less. The handler shall 1,124
satisfy a demand for security on a commodity sold under a delayed 1,125
price agreement at the handler's option by one of the following: 1,126
(1) Payment to the depositor by cash or bank draft on the 1,128
account of the handler; 1,129
(2) Causing an irrevocable letter of credit to be issued 1,131
to the depositor by a bank designated by the handler securing 1,132
payment in the specified amount. The letter of credit shall be 1,133
subject to Chapter 1305. of the Revised Code and rules adopted by 1,134
the director pursuant to Chapter 119. of the Revised Code. 1,135
Sec. 926.30. (A) No licensed handler or employee of a 1,144
licensed handler who receives an agricultural commodity from a 1,145
producer, either for sale or for storage under a bailment 1,146
agreement, shall perform a quality test on the commodity for the 1,147
26
purpose of applying a premium, discount, or conditioning charge 1,148
unless the person making the test has completed a training course 1,149
or on-the-job training as an agricultural commodity tester PASSED 1,150
AN EXAMINATION ON THE SUBJECT THAT IS APPROVED BY THE DIRECTOR OF 1,151
AGRICULTURE. UPON APPLICATION BY A PERSON WHO HAS PASSED THE 1,152
EXAMINATION, THE DIRECTOR SHALL ISSUE TO THE PERSON AN 1,153
AGRICULTURAL COMMODITY TESTER CERTIFICATE THAT SHALL BE VALID FOR 1,154
A PERIOD OF THREE YEARS. EXCEPT AS OTHERWISE PROVIDED IN THIS 1,155
DIVISION, AN AGRICULTURAL COMMODITY TESTER SHALL PASS AN 1,156
EXAMINATION ON AGRICULTURAL COMMODITY TESTING APPROVED BY THE
DIRECTOR PRIOR TO EACH RENEWAL OF A CERTIFICATE. THE DIRECTOR 1,157
MAY EXEMPT FROM THE EXAMINATION REQUIREMENT FOR CERTIFICATE 1,158
RENEWAL AN AGRICULTURAL COMMODITY TESTER WHO, DURING THE YEAR 1,159
PRIOR TO EXPIRATION OF THE CERTIFICATE, SUCCESSFULLY COMPLETES 1,160
TRAINING ON AGRICULTURAL COMMODITY TESTING THAT HAS BEEN APPROVED 1,161
BY THE DIRECTOR. The director of agriculture shall establish by 1,162
rule the curriculum for the training course or on-the-job 1,163
STANDARDS THAT SUCH training that shall MUST MEET IN ORDER TO BE 1,165
APPROVED BY THE DIRECTOR. THE RULES SHALL REQUIRE THE TRAINING 1,166
TO include instructions in the use of the official grain 1,167
standards of the United States as a basis for determining the 1,168
quality of the commodities tested by an agricultural commodity 1,169
tester. AN AGRICULTURAL COMMODITY TESTER CERTIFICATE ISSUED 1,170
PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT SHALL BE CONSIDERED 1,171
TO BE VALID UNTIL THE DATE ON WHICH, AT THE TIME OF ISSUANCE, IT 1,172
WAS SCHEDULED TO EXPIRE. UPON EXPIRATION OF THE CERTIFICATE, THE 1,173
EXAMINATION REQUIREMENT FOR RENEWAL SHALL APPLY.
(B) Upon successful completion of the training required 1,175
under division (A) of this section and upon application by the 1,176
trainee, the director shall issue to an agricultural commodity 1,177
tester a certificate that shall be valid for a period of two 1,178
years. The director may determine that retraining or review is 1,179
necessary for the tester as a result of changes in or amendments 1,180
to the official grain standards of the United States, or if the 1,181
27
director has reason to believe that retraining is necessary as a 1,182
result of complaints relating to the tester's inability to 1,183
accurately test commodities according to the official grain 1,184
standards. A fee to cover the cost of issuing certificates and 1,185
administering the educational program shall be established by 1,186
rule of the director adopted under Chapter 119. of the Revised 1,187
Code and shall be deposited into the commodity handler regulatory 1,188
program fund created in section 926.19 of the Revised Code. 1,189
(C) The director may suspend or revoke the certificate of 1,191
an agricultural commodity tester in accordance with Chapter 119. 1,192
of the Revised Code for failure or inability of the tester to 1,193
apply the official grain standards of the United States in 1,194
testing the quality of an agricultural commodity. 1,195
Sec. 926.32. (A) There is hereby created the commodity 1,204
advisory commission consisting of seven members to be appointed 1,205
by the director of agriculture. Not later than January 1, 1983, 1,206
the director shall make appointments to the commission. Of the 1,207
initial appointments, three shall be for terms ending January 1, 1,208
1984, two shall be for terms ending January 1, 1985, and two 1,209
shall be for terms ending January 1, 1986. Thereafter, terms of 1,210
office shall be for three years, each term ending on the same day 1,211
of the same month of the year as did the term that it succeeds. 1,212
Each member shall hold office from the date of his appointment 1,213
until the end of the term for which he THE MEMBER was appointed. 1,214
Any member appointed to fill a vacancy occurring prior to the 1,216
expiration of the term for which his THE MEMBER'S predecessor was 1,217
appointed shall hold office for the remainder of the term. Any 1,219
member shall continue in office subsequent to the expiration date 1,220
of his THE MEMBER'S term until his THE MEMBER'S successor takes 1,222
office or until a period of sixty days has elapsed, whichever 1,223
occurs first.
(B) The commission shall at all times be composed of three 1,225
farmers who are primarily engaged PRIMARILY in the production of 1,226
agricultural commodities, one licensed handler who is the manager 1,227
28
of a farmers cooperative, one licensed handler who is the owner 1,228
and operator of a warehouse located in a rural area, one licensed 1,229
handler representing a warehouse located at a major agricultural 1,230
commodity transportation center, and one banker who is an officer 1,231
of a rural bank. The director shall annually designate ANNUALLY 1,232
one member of the commission to serve as its chairman CHAIRPERSON 1,234
and may, after notice and public hearing, MAY remove any member 1,236
only for neglect of duty or malfeasance in office. 1,237
(C) A vacancy on the commission shall not impair the right 1,239
of the other members to exercise all of the commission's powers. 1,240
Two farmer members and two handler members shall constitute a 1,241
quorum for the conduct of business of the commission. 1,242
(D) The commission shall meet in Columbus at least three 1,244
times annually at times that the commission shall set by rule and 1,245
may meet at other times that the chairman CHAIRPERSON or a 1,246
majority of the commission members considers appropriate; 1,248
provided, that no meeting shall be held on the call of the 1,249
chairman CHAIRPERSON unless at least seven days' written notice 1,251
is first given to all members of the commission. 1,252
(E) Each member shall be reimbursed for his THE MEMBER'S 1,254
actual and necessary expenses incurred in the discharge of his 1,256
duties as a commission member. 1,257
(F) The commission may adopt, amend, or rescind rules or 1,259
procedures governing the conduct of its internal affairs. 1,260
(G) The commission may request from the director, and the 1,262
director shall provide, meeting space, assistance, services, and 1,263
data to enable it to carry out its functions. 1,264
(H) All costs of the commission, including all of the 1,266
expenses of its members and consultants authorized in this 1,267
section, shall be paid from the commodity handler regulatory 1,268
program fund created in section 926.19 of the Revised Code 1,269
pursuant to itemized vouchers approved by the chairman 1,270
CHAIRPERSON of the commission and the director. 1,272
(I) The director shall designate an official or employee 1,274
29
of the department of agriculture to act as the executive 1,275
secretary of the commission. The director ALSO may also request 1,276
the attendance at meetings of the commission consultants with 1,278
expertise in agricultural law, marketing, statistics, or any 1,279
other subject to advise and consult with the commission on 1,280
matters on the agenda of any regular or special meeting of the 1,281
commission. The expenses incurred by consultants attending those 1,282
meetings shall be reimbursed according to division (H) of this 1,283
section. The executive secretary shall keep or cause to be kept 1,284
a permanent journal of all meetings, proceedings, findings, 1,285
determinations, and recommendations of the commission, including 1,286
an itemized statement of the expenses allowed to each member of 1,287
the commission and consultants under this section. The journal 1,288
shall be a public record. 1,289
(J) In addition to the authority granted in division (F) 1,291
of section 926.05, division (B) of section 926.17, divisions (A) 1,292
and (C) of section 926.18, and division (B) of section 926.19 of 1,293
the Revised Code, the commission shall advise and counsel the 1,294
director on all matters relating to: 1,295
(1) The administration of this chapter; 1,297
(2) The development of rules authorized by section 926.02 1,299
of the Revised Code; 1,300
(3) Any other matters that the commission and the director 1,302
consider appropriate in carrying out this chapter. 1,303
Sec. 926.36. THE DIRECTOR OF AGRICULTURE MAY ENTER INTO A 1,305
CONTRACT WITH A MARKETING ASSOCIATION THAT IS INVOLVED IN A 1,306
PROGRAM DESIGNED TO IMPROVE OR EXPAND THE MARKET FOR AN 1,307
AGRICULTURAL COMMODITY AND FUNDED BY AN ASSESSMENT THAT IS LEVIED 1,309
ON PRODUCERS OF THE AGRICULTURAL COMMODITY AND CALCULATED ON THE 1,310
BASIS OF THE VOLUME OF AGRICULTURAL COMMODITIES PRODUCED BY THE
PRODUCER. UNDER THE CONTRACT, THE MARKETING ASSOCIATION MAY 1,311
AGREE TO PAY THE DIRECTOR A MUTUALLY ACCEPTABLE SUM AND IN 1,312
EXCHANGE THE DIRECTOR MAY AGREE TO FURNISH THE MARKETING 1,313
ASSOCIATION WITH INFORMATION THAT THE DIRECTOR OBTAINS UNDER 1,314
30
SECTION 926.11 OF THE REVISED CODE REGARDING THE VOLUME OF 1,316
COMMODITIES PRODUCED BY PRODUCERS WHO PARTICIPATE IN THE 1,317
MARKETING PROGRAM, AND RELATED FINANCIAL INFORMATION. 1,318
THE MARKETING ASSOCIATION MAY USE THE INFORMATION TO 1,320
DETERMINE WHETHER A PRODUCER HAS TRUTHFULLY DISCLOSED THE VOLUME 1,321
OF AGRICULTURAL COMMODITIES PRODUCED BY THE PRODUCER AND WHETHER 1,322
THE MARKETING ASSOCIATION HAS RECEIVED THE CORRECT AMOUNT IN 1,323
ASSESSMENTS. 1,324
ANY SUM PAID TO THE DIRECTOR UNDER A CONTRACT ENTERED INTO 1,326
UNDER THIS SECTION SHALL BE DEPOSITED IN THE COMMODITY HANDLER 1,327
REGULATORY PROGRAM FUND CREATED IN SECTION 926.19 OF THE REVISED 1,329
CODE. 1,330
Sec. 926.99. (A) Whoever (1) EXCEPT AS PROVIDED IN 1,339
DIVISION (A)(2) OF THIS SECTION, WHOEVER violates section 926.04 1,340
of the Revised Code is guilty of a minor misdemeanor OF THE FIRST 1,342
DEGREE ON A FIRST OFFENSE AND A FELONY OF THE FIFTH DEGREE ON 1,343
EACH SUBSEQUENT OFFENSE.
(2) A PERSON WHO VIOLATES SECTION 926.04 OF THE REVISED 1,348
CODE AND WHO IS INSOLVENT AND FINANCIALLY UNABLE TO SATISFY A 1,349
CLAIMANT AS DEFINED IN SECTION 926.021 OF THE REVISED CODE IS 1,351
GUILTY OF A FELONY OF THE FIFTH DEGREE IF THE FINANCIAL 1,352
OBLIGATION OWED BY THE OFFENDER TO THE CLAIMANT IS FIVE HUNDRED 1,353
DOLLARS OR MORE AND IS LESS THAN FIVE THOUSAND DOLLARS. IF THE 1,354
FINANCIAL OBLIGATION IS FIVE THOUSAND DOLLARS OR MORE AND IS LESS 1,355
THAN ONE HUNDRED THOUSAND DOLLARS, THE OFFENDER IS GUILTY OF A 1,356
FELONY OF THE FOURTH DEGREE. IF THE FINANCIAL OBLIGATION IS ONE 1,357
HUNDRED THOUSAND DOLLARS OR MORE, THE OFFENDER IS GUILTY OF A 1,358
FELONY OF THE THIRD DEGREE. 1,359
(B) Whoever violates division (E) or (F) of section 926.20 1,361
or division (A) of section 926.22 of the Revised Code is guilty 1,362
of a minor misdemeanor on a first offense and a misdemeanor of 1,363
the second degree on each subsequent offense. 1,364
(C) Whoever violates division (G) of section 926.20 or 1,366
section 926.34 or 926.35 of the Revised Code is guilty of a 1,367
31
felony of the fourth degree. 1,368
(D) Whoever violates division (A) of section 926.28, or 1,372
division (B) of section 926.29, of the Revised Code is guilty of
a felony of the fifth degree. 1,373
(E) Whoever violates section 926.31 of the Revised Code is 1,375
guilty of a misdemeanor of the fourth degree. 1,376
Section 2. That existing sections 926.01, 926.021, 926.05, 1,378
926.06, 926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 926.32, 1,379
and 926.99 of the Revised Code are hereby repealed. 1,380