As Reported by the Senate Agriculture Committee 1
122nd General Assembly 4
Regular Session Sub. 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
SENATORS WHITE-GAETH-LATTA-CARNES 11
13
A B I L L
To amend sections 926.01, 926.021, 926.05, 926.06, 15
926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 16
926.32, 926.99, and 4513.32 and to enact sections 17
926.051, 926.36, and 5577.042 of the Revised Code
to change the definition of an agricultural 18
commodity handler, to increase the total net 20
worth that an applicant for an agricultural 21
commodity handler's license must maintain, to
increase the penalty for engaging in agricultural 22
commodity handling without a license, to make 23
other revisions to the law governing agricultural 25
commodity handling, to permit certain pickup 26
trucks and straight trucks to tow at a speed not 27
exceeding 25 miles per hour not more than two
vehicles carrying agricultural produce from the 28
farm to a local place of storage, and, except
during the months of February and March, to allow 30
farm and log trucks and farm machinery, under 31
prescribed circumstances, to exceed by no more 32
than five per cent the established motor vehicle 33
weight limits on highways and bridges that are
not part of the interstate system and are not 35
subject to reduced weight limits.
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 37
Section 1. That sections 926.01, 926.021, 926.05, 926.06, 39
926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 926.32, 926.99, 41
and 4513.32 be amended and sections 926.051, 926.36, and 5577.042
of the Revised Code be enacted to read as follows: 44
Sec. 926.01. As used in this chapter: 53
(A) "Agricultural commodity" means barley, corn, oats, 55
rye, grain sorghum, soybeans, wheat, sunflower, speltz, and OR 56
any other agricultural crop which the director of agriculture may 58
designate by rule. "Agricultural commodity" does not mean any 59
grain that is purchased for sale as seed. 60
(B) "Agricultural commodity handling" or "handling" means: 62
(1) Engaging in or participating in the business of 64
purchasing an agricultural commodity for sale, resale, 65
processing, or for any other use in THE FOLLOWING volumes 66
exceeding ten: 67
(a) IN THE CASE OF PURCHASES MADE FROM PRODUCERS, MORE 69
THAN THIRTY thousand bushels annually; 70
(b) IN THE CASE OF PURCHASES MADE FROM AGRICULTURAL 73
COMMODITY HANDLERS, MORE THAN ONE HUNDRED THOUSAND BUSHELS 74
ANNUALLY;
(c) IN THE CASE OF TOTAL PURCHASES MADE FROM PRODUCERS 77
COMBINED WITH TOTAL PURCHASES MADE FROM HANDLERS, MORE THAN ONE 78
HUNDRED THOUSAND BUSHELS ANNUALLY. 79
(2) Operating a warehouse as a bailee for the receiving, 81
storing, shipping, or conditioning of an agricultural commodity; 82
(3) Receiving into a warehouse an agricultural commodity 84
purchased under a delayed price agreement; 85
(4) PROVIDING MARKETING FUNCTIONS, INCLUDING STORAGE, 87
DELAYED PRICE MARKETING, DEFERRED PAYMENT, FEED AGREEMENTS, OR 88
ANY OTHER MARKETING TRANSACTION WHEREBY CONTROL IS EXERTED OVER 89
THE MONETARY PROCEEDS OF A PRODUCER'S AGRICULTURAL COMMODITIES BY 91
A PERSON OTHER THAN THE PRODUCER.
(C) "Agricultural commodity handler" or "handler" means 93
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any person who is engaged in the business of agricultural 94
commodity handling. Any "AGRICULTURAL COMMODITY HANDLER" OR 95
"HANDLER" DOES NOT INCLUDE A person whose purchases of all 96
agricultural commodities do not exceed ten thousand bushels 97
annually and who does not handle agricultural commodities as a 98
bailee is not an AND WHO PURCHASES AGRICULTURAL COMMODITIES IN 99
THE FOLLOWING VOLUMES: 100
(1) THIRTY THOUSAND OR FEWER BUSHELS ANNUALLY FROM 102
PRODUCERS;
(2) ONE HUNDRED THOUSAND OR FEWER BUSHELS ANNUALLY FROM 104
agricultural commodities handler COMMODITY HANDLERS. 105
A PERSON WHO DOES NOT HANDLE AGRICULTURAL COMMODITIES AS A 108
BAILEE AND WHO ANNUALLY PURCHASES THIRTY THOUSAND OR FEWER
BUSHELS OF AGRICULTURAL COMMODITIES FROM PRODUCERS AND ONE 109
HUNDRED THOUSAND OR FEWER BUSHELS OF AGRICULTURAL COMMODITIES 110
FROM AGRICULTURAL COMMODITY HANDLERS SHALL BE CONSIDERED TO BE AN 112
AGRICULTURAL COMMODITY HANDLER IF THE COMBINED ANNUAL VOLUME OF 113
PURCHASES FROM THE PRODUCERS AND THE AGRICULTURAL COMMODITY
HANDLERS EXCEEDS ONE HUNDRED THOUSAND BUSHELS. 114
(D) "Depositor" means: 116
(1) Any person who delivers an agricultural commodity to a 118
licensed handler for storage, conditioning, shipment, or sale; 119
(2) Any owner or legal holder of a ticket or receipt 121
issued for an agricultural commodity who is a creditor of the 122
licensed handler for the value of the agricultural commodity; 123
(3) Any licensed handler storing an agricultural commodity 125
that he THE LICENSED HANDLER owns solely, jointly, or in common 126
with others in a warehouse owned or controlled by him THE 128
LICENSED HANDLER or any other licensed handler. 130
(E) "Receipt" means a warehouse receipt issued by a 132
licensed handler. 133
(F) "Nonnegotiable receipt" means a receipt on which it is 135
stated that the agricultural commodity received will be delivered 136
to the depositor or to the order of any other person named in the 137
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receipt. 138
(G) "Negotiable receipt" means a receipt on which it is 140
stated that the agricultural commodity received will be delivered 141
to the bearer or to the order of any person named in the receipt. 142
(H) "Ticket" means a scale weight ticket, a load slip, or 144
any evidence, other than a receipt, given to a depositor by a 145
licensed handler upon delivery of an agricultural commodity to 146
the handler. 147
(I) "Warehouse" means any building, bin, protected 149
enclosure, or similar premises under the control of a licensed or 150
unlicensed handler used for receiving, storing, shipping, or 151
handling an agricultural commodity. 152
(J) "Storage" means the deposit of an agricultural 154
commodity into a warehouse either for the account of the licensed 155
handler operating the warehouse or for the account of a 156
depositor. 157
(K) "Producer" means any person who grows an agricultural 159
commodity on land that he THE PERSON owns or leases. 160
(L) "Agent" means any person, other than a producer, who 162
delivers an agricultural commodity to a licensed handler, either 163
for sale or for storage, for the account of the producer. 164
(M) "Agricultural commodity tester" or "tester" means a 166
person who operates a moisture meter and other quality testing 167
devices to determine the quality of an agricultural commodity. 168
(N) "Federally licensed grain inspector" means a person 170
who is licensed by the United States department of agriculture 171
under the "United States Grain Standards Act," 39 Stat. 482 172
(1916), 7 U.S.C. 71, as amended, to test and grade grain, as 173
"grain" is defined in that act. 174
(O) "Bailee" means a person to whom an agricultural 176
commodity is delivered in trust for storage in a warehouse with 177
title remaining in the name of the depositor. 178
(P) "Bailor" means a person who delivers an agricultural 180
commodity to a bailee in trust for storage in a warehouse with 181
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title remaining in the name of the depositor. 182
(Q) "Bailment agreement" means a bailor-bailee agreement 184
between a depositor and a licensed handler as stated in the terms 185
of a receipt that is issued for an agricultural commodity in 186
storage and subject to the requirements of this chapter governing 187
the use of a receipt. 188
(R) "Delayed price agreement" means a written executory 190
contract executed by and between a licensed handler and a 191
depositor that covers the sale and transfer of title of an 192
agricultural commodity and states in its written terms the 193
service charges and the method for pricing the commodity at a 194
later date. 195
(S) "Delayed price marketing" means the sale and transfer 197
of title of an agricultural commodity with the price to be 198
established at a later date according to the terms of a delayed 199
price agreement. 200
(T) "DEFERRED PAYMENT" MEANS THE DEFERRAL OF PAYMENT TO A 203
DEPOSITOR BY A LICENSED HANDLER FOR AN AGRICULTURAL COMMODITY TO 204
WHICH THE LICENSED HANDLER HAS TAKEN TITLE, FOR THE PURPOSE OF 205
DEFERRING INCOME OF THE DEPOSITOR FROM ONE TAX YEAR TO ANOTHER. 206
(U) "FEED AGREEMENT" MEANS A WRITTEN CONTRACT EXECUTED BY 209
AND BETWEEN A LICENSED HANDLER AND A PRODUCER OR DEPOSITOR WHO 210
DELIVERS AN AGRICULTURAL COMMODITY TO THE LICENSED HANDLER FOR 211
STORAGE WHEREBY EACH OF THE FOLLOWING APPLIES: 212
(1) THE PRODUCER OR DEPOSITOR TRANSFERS TITLE TO THE 214
AGRICULTURAL COMMODITY TO THE LICENSED HANDLER IN EXCHANGE FOR A 215
NOMINAL SUM; 216
(2) THE PRODUCER, UPON DELIVERY OF THE AGRICULTURAL 218
COMMODITY TO THE LICENSED HANDLER, BECOMES A CREDITOR OF THE 219
LICENSED HANDLER DUE TO THE LIEN THAT ARISES UNDER SECTION 220
926.021 OF THE REVISED CODE; 222
(3) ALL OR PART OF THE AGRICULTURAL COMMODITY IS RETURNED 225
TO THE PRODUCER AT A LATER DATE AND USED FOR FEED PURPOSES. 226
(V) NOTWITHSTANDING SECTION 1.02 OF THE REVISED CODE, 230
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"AND" SHALL NOT BE READ "OR" AND "OR" SHALL NOT BE READ "AND." 231
Sec. 926.021. (A) As used in this section: 240
(1) "Claimant" means a person who is unable to secure 242
satisfaction of financial obligations due from TO WHOM an 243
agricultural commodity handler OWES A FINANCIAL OBLIGATION FOR 245
AGRICULTURAL COMMODITIES OR THE ACTUAL MONETARY PROCEEDS FROM 246
AGRICULTURAL COMMODITIES THAT HAVE BEEN DELIVERED TO THE HANDLER. 247
(2) "Failure" means any of the following involving an 249
agricultural commodity handler: 250
(a) An inability to financially satisfy claimants 252
FINANCIALLY;
(b) A public declaration of insolvency; 254
(c) A revocation, SUSPENSION, OR CONDITIONAL SUSPENSION of 256
license with outstanding indebtedness to claimants; 258
(d) Nonpayment in the ordinary course of business where a 260
good faith dispute does not exist; 261
(e) No application for license renewal; 263
(f) Denial of license renewal; 265
(g) Voluntarily surrendering a license. 267
(3) "Agricultural commodity assets" involving a failed AN 269
agricultural commodity handler mean MEANS any of the following: 270
(a) All agricultural commodities owned or stored, 272
including agricultural commodities in transit shipped by the 273
failed handler but not yet paid for; 274
(b) Redeposited agricultural commodities; 276
(c) Proceeds from the sale of agricultural commodities due 278
or to become due; 279
(d) The equity less any secured financing directly 281
associated therewith in assets in hedging or speculative margin 282
accounts held by commodity or security exchanges or dealers 283
representing the exchanges, and any moneys due or to become due 284
less any secured financing directly associated therewith from any 285
transactions on the exchanges; 286
(e) Any other unencumbered funds, property, or equity in 288
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funds or property, wherever located, that can be directly traced 289
to the sale of agricultural commodities by the failed handler, 290
provided both that the funds, property, or equity in funds or 291
property shall not be considered to be encumbered unless the 292
encumbrance results from good and valuable considerations 293
advanced by any secured party on a good faith basis and that the 294
encumbrance is not the result of the taking of funds, property, 295
or equity in funds or property as additional collateral for an 296
antecedent debt; 297
(f) Any other unencumbered funds, property, or equity in 299
assets. 300
(B) A lien shall exist on all agricultural commodity 302
assets of a failed AN agricultural commodity handler in favor of 303
any of the following: 305
(1) Claimants, including lenders, who possess receipts 307
covering grain owned or stored by the handler; 308
(2) Claimants who possess written evidence of ownership 310
other than a receipt disclosing a storage obligation of the 311
handler, including tickets; 312
(3) Claimants who surrendered receipts as part of an 314
agricultural commodity sales transaction but were not fully paid 315
FULLY for the agricultural commodity and the handler failed 316
within twenty TWENTY-ONE days after the surrender; 317
(4) Claimants who possess any other written evidence of 319
the sale of agricultural commodities to the failed handler for 320
which they were not fully paid FULLY, INCLUDING THE SALE OF 321
AGRICULTURAL COMMODITIES FOR A NOMINAL SUM UNDER A FEED 322
AGREEMENT.
(C) The lien which THAT shall secure all claims described 324
in division (D) of this section, shall arise, ATTACH TO THE 325
AGRICULTURAL COMMODITY ASSETS OF AN AGRICULTURAL COMMODITY 326
HANDLER, AND BECOME EFFECTIVE at the time of the delivery of the 329
agricultural commodity for sale OR FOR STORAGE UNDER A BAILMENT 330
AGREEMENT, commencement of the storage obligation, or when funds 331
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are advanced by the lender, and shall terminate when the 332
liability of the agricultural commodity handler to the claimant 333
is discharged, provided that the priority of each lien among the 334
respective claimants shall not relate to the date the claim 335
arises but shall be governed by the priorities established in 336
division (D) of this section. The IN THE EVENT OF A FAILURE, THE 337
lien claims of all claimants shall be considered to be assigned 338
by operation of this section to the department of agriculture, 339
and in the event of a failure and subsequent liquidation, the 340
lien shall transfer over to assets or proceeds of assets either 341
received or liquidated by the department of agriculture. 342
(D) In EXCEPT AS PROVIDED IN DIVISION (E) OF THIS SECTION, 344
IN the event of a failure, the director of agriculture shall 346
POSSESS EXCLUSIVE AUTHORITY TO enforce the lien claims and
allocate the proceeds as follows: 348
(1) First priority against all agricultural commodity 350
assets shall be the following: 351
(a) Claimants, including lenders, who possess receipts 353
covering grain owned or stored by the agricultural commodity 354
handler; 355
(b) Claimants who possess written evidence of ownership 357
other than receipts disclosing a storage obligation of the 358
handler, including tickets; 359
(c) Claimants who surrendered receipts as part of an 361
agricultural commodity transaction, but were not fully paid for 362
the agricultural commodity and the handler failed within 363
twenty-one days after the surrender. 364
(2) Second priority against all agricultural commodity 366
assets shall be to claimants who possess written evidence of the 367
sale of an agricultural commodity, including, but not limited to, 369
tickets, delayed price agreements, or similar agricultural 370
commodity delivery contracts who completed delivery and pricing 371
within thirty days immediately prior to the failure of the 372
handler. 373
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(3) To the extent not necessary to satisfy first and 375
second priority claimants, all other claimants who possess 376
written evidence of the sale of agricultural commodities to the 377
failed handler shall participate in the pro rata distribution of 378
the remainder of the agricultural commodity assets in an amount 379
not to exceed the value of their EACH claim. 380
(E) In the event that any adversary proceeding is 382
commenced to recover agricultural commodity assets upon which the 383
lien imposed in this section is imposed and the department of 384
agriculture declines to enter the proceeding, the director of 385
agriculture, upon application to him THE DIRECTOR by any 386
claimant, shall assign to the claimant the applicable lien to 388
permit the claimant to pursue his THE CLAIMANT'S lien in the 389
adversary proceeding to the extent the action will not delay the 391
resolution of the proceeding, the prompt liquidation of the 392
assets, or the ultimate distribution of the assets of TO all 393
claimants.
Sec. 926.05. (A) Each person desiring to obtain or renew 402
a handler's license shall file an application annually with the 403
director of agriculture at such times, on such forms, and 404
containing such information as he THE DIRECTOR prescribes, 406
INCLUDING, IF APPLICABLE, THE APPOINTMENT OF A STATUTORY AGENT 407
UNDER SECTION 926.051 OF THE REVISED CODE.
(B) Each application for a license or license renewal 409
shall be accompanied by an application fee of two hundred dollars 410
for the first facility operated by the applicant plus one hundred 411
dollars for each additional facility operated by the same 412
applicant and by an examination fee, established by rule of the 413
director pursuant to section 926.02 of the Revised Code, for each 414
facility operated by the applicant. "Facility" means all 415
warehouse storage located on one premises, including any 416
additional warehouse storage located within one thousand yards of 417
that premises. The director may charge fees for examinations in 418
an amount not to exceed those fees charged by the United States 419
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department of agriculture for comparable examinations. 420
The director shall deposit all fees collected under this 422
section in the commodity handler regulatory program fund created 423
in section 926.19 of the Revised Code. 424
(C) The director shall approve or reject each application 426
for a license within fifteen days after receipt thereof, provided 427
that such application is in proper form and contains the 428
information required under division (A) of this section. A 429
rejection of an application shall be accompanied by a statement 430
from the director of the additional requirements necessary for a 431
license. The applicant may resubmit his THE application without 432
payment of any additional fee. 433
(D) A handler's license shall expire on the date 435
prescribed by rule of the director. Whenever the director 436
considers it advisable to cancel the unexpired portion of an 437
outstanding license in order to renew it according to a new or 438
existing system of expiration dates, he THE DIRECTOR shall refund 440
to the handler the unexpired portion of the fees paid under 441
division (B) of this section. Whenever the director issues an 442
initial license on a date that does not conform to the existing 443
system, he THE DIRECTOR shall issue the license for whatever A 445
period of time, not less than six nor more than eighteen months, 447
that makes it THE DATE conform to the existing system. The 449
application fee for that initial license shall be proportionate 450
to the fee for a one-year license.
(E) An application for renewal of a handler's license 452
shall be filed with the director not later than thirty days 453
before the current license expires. An applicant who fails to 454
file a renewal application in time shall pay a late fee of one 455
dollar for each day the application is late or fifteen dollars, 456
whichever is greater. A renewal license shall not be issued 457
until a late fee that is due has been paid. 458
(F) The director, with the approval of the commodity 460
advisory commission, may revoke or refuse to issue or renew a 461
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handler's license if any of the following occurred within five 462
years before the application for the license or renewal was 463
filed: 464
(1) The applicant, or the spouse, parent, sibling, or 466
child of the applicant, or a manager employed by the applicant, 467
or any other individual materially involved in the agricultural 468
commodity handling business of the applicant was a principal in a 469
receivership or insolvency that resulted in losses to creditors 470
or to the agricultural commodity depositors fund established in 471
section 926.16 of the Revised Code; 472
(2) The applicant pled guilty to or was convicted of any 474
felony or charge of embezzlement under the laws of this state, 475
any other state, or of the United States; 476
(3) The applicant made a delivery of commodities not 478
authorized under this chapter; 479
(4) The applicant's license under the "United States 481
Warehouse Act," 39 Stat. 486 (1916), 7 U.S.C. 241, as amended, 482
was revoked or canceled due to a violation of that act. 483
Sec. 926.051. (A) AN APPLICANT FOR A HANDLER'S LICENSE OR 486
RENEWAL ISSUED UNDER SECTION 926.05 OF THE REVISED CODE WHO DOES 488
NOT CONDUCT BUSINESS AT AN ADDRESS IN THIS STATE AT WHICH THE 489
APPLICANT USUALLY CAN BE CONTACTED SHALL INCLUDE WITH THE 490
APPLICATION A WRITTEN APPOINTMENT OF AN AGENT, SOMETIMES REFERRED 491
TO AS A "STATUTORY AGENT," UPON WHOM ANY PROCESS, NOTICE, OR 492
DEMAND MAY BE SERVED. THE APPOINTMENT SHALL BE ACCOMPANIED BY A 493
WRITTEN ACCEPTANCE OF THE APPOINTMENT SIGNED BY THE AGENT. THE 494
AGENT MAY BE A NATURAL PERSON WHO IS A RESIDENT OF THIS STATE OR 495
A CORPORATION WHOSE PRINCIPAL PLACE OF BUSINESS IS LOCATED IN 496
THIS STATE. THE APPOINTMENT SHALL BE ON SUCH FORMS AND CONTAIN 497
SUCH INFORMATION AS THE DIRECTOR OF AGRICULTURE PRESCRIBES. 498
FAILURE TO COMPLY WITH THIS DIVISION IS GROUNDS FOR REJECTION OF 499
THE APPLICATION UNDER DIVISION (C) OF SECTION 926.05 OF THE 502
REVISED CODE. 503
(B)(1) IF AN AGENT REMOVES FROM THE STATE OR RESIGNS, OR 506
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IF THE APPLICANT REVOKES THE AGENT'S APPOINTMENT, THE APPLICANT 507
IMMEDIATELY SHALL NOTIFY THE DIRECTOR IN WRITING NOT LATER THAN 508
THIRTY DAYS PRIOR TO THE REMOVAL, RESIGNATION, OR REVOCATION. IF 509
AN AGENT DIES, THE APPLICANT IMMEDIATELY SHALL NOTIFY THE 510
DIRECTOR IN WRITING. PRIOR TO THE REMOVAL, RESIGNATION, OR 511
REVOCATION AND NOT LATER THAN THIRTY DAYS AFTER THE DEATH, THE 512
APPLICANT SHALL APPOINT ANOTHER AGENT AND FILE WITH THE DIRECTOR 513
A WRITTEN APPOINTMENT OF THE AGENT, ALONG WITH A WRITTEN 514
ACCEPTANCE OF THE APPOINTMENT SIGNED BY THE AGENT. 515
(2) IF THE AGENT'S ADDRESS CHANGES FROM THAT APPEARING ON 517
THE APPLICATION, THE APPLICANT, NOT LATER THAN THIRTY DAYS PRIOR 518
TO THE ADDRESS CHANGE, SHALL FILE WITH THE DIRECTOR A WRITTEN 519
STATEMENT SETTING FORTH THE NEW ADDRESS, ALONG WITH ANY OTHER 520
INFORMATION THE DIRECTOR REQUESTS. 521
(C) FAILURE TO COMPLY WITH DIVISION (B) OF THIS SECTION IS 525
GROUNDS FOR SUSPENSION OR CONDITIONAL SUSPENSION OF A HANDLER'S 526
LICENSE, WITHOUT PRIOR HEARING, UNDER SECTION 926.10 OF THE 527
REVISED CODE. 528
Sec. 926.06. (A) The director of agriculture may issue a 537
handler's license, or renewal thereof, upon the payment of the 538
prescribed application fee, if the director is satisfied that the 539
applicant meets the standards of financial responsibility 540
required under this section and has complied with this chapter 541
and the rules adopted under it. 542
(B) Each (1) ON THE EFFECTIVE DATE OF THIS AMENDMENT, 544
EACH applicant for a handler's license, or renewal thereof, shall 546
have and maintain current assets equal to or greater than current 547
liabilities and a total net worth of EQUAL TO at least ten cents 549
per bushel for the total number of bushels of agricultural 550
commodities that he THE APPLICANT handled during the immediately 551
preceding twelve-month period to cover any indebtedness arising 552
from his THE APPLICANT'S operations as a licensed handler. If 554
ONE YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THE TOTAL 556
NET WORTH REQUIREMENT SHALL INCREASE TO ELEVEN CENTS PER BUSHEL. 557
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FOR THE NEXT FOUR YEARS, THE REQUIREMENT SHALL CONTINUE TO 558
INCREASE BY ONE CENT PER BUSHEL EACH YEAR ON THE ANNIVERSARY OF 559
THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE YEARS AFTER 560
THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S TOTAL NET 561
WORTH SHALL BE EQUAL TO AT LEAST FIFTEEN CENTS PER BUSHEL FOR THE
TOTAL NUMBER OF BUSHELS OF AGRICULTURAL COMMODITIES THAT THE 562
APPLICANT HANDLED DURING THE IMMEDIATELY PRECEDING TWELVE-MONTH 563
PERIOD. 564
(2) ON THE EFFECTIVE DATE OF THIS AMENDMENT, IF an 566
applicant is applying for a handler's license for the first time 567
and did not handle any agricultural commodities during the 568
immediately preceding twelve-month period, he THE APPLICANT shall 569
have an allowable total net worth of at least twenty-five 571
thousand dollars for that purpose. No TO COVER ANY INDEBTEDNESS 573
ARISING FROM THE APPLICANT'S OPERATIONS AS A LICENSED HANDLER. 574
ONE YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THIS
ALLOWABLE TOTAL NET WORTH REQUIREMENT SHALL INCREASE TO THIRTY 575
THOUSAND DOLLARS. FOR THE NEXT FOUR YEARS, THE REQUIREMENT SHALL 577
CONTINUE TO INCREASE BY FIVE THOUSAND DOLLARS EACH YEAR ON THE 578
ANNIVERSARY OF THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE 579
YEARS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S 580
TOTAL NET WORTH SHALL BE AT LEAST FIFTY THOUSAND DOLLARS. 581
(3) ON THE EFFECTIVE DATE OF THIS AMENDMENT, NO person 584
shall be licensed as a handler unless he THE PERSON has an 585
allowable total net worth of at least twenty-five thousand
dollars. Any ONE YEAR AFTER THE EFFECTIVE DATE OF THIS 587
AMENDMENT, THIS ALLOWABLE TOTAL NET WORTH REQUIREMENT SHALL 588
INCREASE TO THIRTY THOUSAND DOLLARS. FOR THE NEXT FOUR YEARS, 589
THE REQUIREMENT SHALL CONTINUE TO INCREASE BY FIVE THOUSAND 590
DOLLARS EACH YEAR ON THE ANNIVERSARY OF THE EFFECTIVE DATE OF 591
THIS AMENDMENT, SO THAT FIVE YEARS AFTER THE EFFECTIVE DATE OF 592
THIS AMENDMENT, THE PERSON'S TOTAL NET WORTH SHALL BE AT LEAST 593
FIFTY THOUSAND DOLLARS. 594
(4) ON THE EFFECTIVE DATE OF THIS AMENDMENT, ANY 596
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deficiency in required total net worth may be compensated for by 598
an indemnity agreement executed by a person pledging personal 599
assets for the benefit of commodity creditors should the licensed 600
handler default in his THE LICENSED HANDLER'S obligations to the 601
creditors; a bond issued by a corporate surety company that is 602
authorized to do business under the laws of this state; or, at 603
the director's discretion, an irrevocable letter of credit issued 604
by a bank or other lending institution that is authorized by this 605
state or the United States to issue such letters of credit and is 606
subject to service of process in this state for any suit on the 607
bond or letter of credit. AN INDEMNITY AGREEMENT EXECUTED BY A 609
PERSON PLEDGING PERSONAL ASSETS SHALL BE ACCOMPANIED BY FINANCIAL 610
STATEMENTS THAT REFLECT THE PERSON'S FINANCIAL POSITION AS AN 611
INDIVIDUAL AND COMPLY WITH THE REQUIREMENTS OF DIVISION (C) OF 613
THIS SECTION. A bond shall be made to the treasurer of the state 615
of Ohio to be deposited in the agricultural commodity depositors 616
fund created under section 926.16 of the Revised Code for the 617
benefit of any person who may be injured by the handler's failure 618
to meet obligations arising under this chapter. A letter of 619
credit shall be issued for the benefit of the department of 620
agriculture and the agricultural commodity depositors fund. 621
In (5) THE DIRECTOR SHALL ADOPT RULES IN ACCORDANCE WITH 624
CHAPTER 119. OF THE REVISED CODE SPECIFYING THE ASSETS FOR WHICH 627
CREDIT MAY BE GIVEN IN determining AN APPLICANT'S total net 628
worth, credit may be given for fixed assets such as buildings, 629
machinery, and equipment, in the amount of the insured value of 630
such assets under a policy of insurance against loss or damage 632
or, at the discretion of the director, in the amount of their 633
current market value as determined by an accredited rural 634
appraiser or an appraiser certified by the American appraisal 636
institute. The appraiser shall be completely independent of any 638
relationship with the handler. Capital stock shall not be 639
considered a liability for the purpose of determining total net 640
worth. Regardless.
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(6) ON THE EFFECTIVE DATE OF THIS AMENDMENT, REGARDLESS of 642
the total number of bushels of agricultural commodities that he 644
AN APPLICANT handled during the immediately preceding 646
twelve-month period, an THE applicant's total net worth need not 648
exceed A MAXIMUM OF three hundred thousand dollars. ONE YEAR 650
AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THIS MAXIMUM TOTAL 651
NET WORTH NEED NOT EXCEED THREE HUNDRED THIRTY THOUSAND DOLLARS. 652
FOR THE NEXT FOUR YEARS, THIS MAXIMUM TOTAL NET WORTH SHALL 653
CONTINUE TO INCREASE BY THIRTY THOUSAND DOLLARS EACH YEAR ON THE 654
ANNIVERSARY OF THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE 655
YEARS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S 656
TOTAL NET WORTH NEED NOT EXCEED FOUR HUNDRED FIFTY THOUSAND 657
DOLLARS.
(C) In order for the director to determine if an applicant 659
meets the standards of financial responsibility required under 660
division (B) of this section, the applicant for a handler's 661
license, or renewal of a handler's license, shall submit a 662
current financial statement STATEMENTS THAT HAVE BEEN prepared IN 664
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THAT 665
HAVE BEEN AUDITED OR REVIEWED by a qualified person who is not 666
directly associated with the applicant's business AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT. The financial statement STATEMENTS 668
shall consist of a THE APPLICANT'S balance sheet showing the 669
current and deferred assets and liabilities of the applicant, a, 670
INCOME statement of income, a statement of retained earnings OR 672
STATEMENT OF STOCKHOLDER'S EQUITY, a AND statement of changes in 674
financial position CASH FLOWS, and whatever notes are sufficient 676
to explain the details contained in the financial statement 677
TOGETHER WITH ANY EXPLANATORY FOOTNOTES OR SUPPLEMENTARY
INFORMATION ACCOMPANYING THESE STATEMENTS AND WITH THE 678
INDEPENDENT ACCOUNTANT'S REPORT ON THE STATEMENTS. 679
The financial statement STATEMENTS accompanying an 681
applicant's original application shall show a statement closing 682
date that is BE FOR A YEAR ENDING within six months of BEFORE the 684
16
date of application. Thereafter, the applicant applying for 686
renewal shall submit an annual statement SUCH STATEMENTS not 688
later than ninety days after the close END of his business THE 689
year COVERED BY THE STATEMENTS.
The director may require an applicant for a handler's 691
license, or renewal of a handler's license, to submit a financial 692
statement prepared STATEMENTS AUDITED by a AN INDEPENDENT 694
certified public accountant licensed under the laws of this 695
state, and may require the attachment to the statement of the 696
accountant's opinion of the applicant's financial status based on 697
his examination of the records conducted in accordance with 698
generally accepted auditing standards if the director determines 699
that the first financial statement STATEMENTS INITIALLY submitted 700
under this division is ARE incomplete or otherwise 702
unsatisfactory.
(D) The director may prepare and publish statistical 704
abstracts of information obtained under this section without 705
disclosing details that would identify a particular applicant 706
with particular statistics. Such information OTHERWISE is 707
otherwise confidential for purposes of section 102.03 of the 709
Revised Code, and records of the department of agriculture 710
containing such information are not otherwise public records 711
under section 149.43 of the Revised Code. 712
Sec. 926.10. The director of agriculture may, by order, 721
MAY refuse to grant or may suspend or conditionally suspend a 723
handler's license, without prior hearing, when he THE DIRECTOR 724
determines that there is reasonable cause to believe that the 726
applicant or licensee: 727
(A) Has failed to maintain the insurance coverage required 729
under section 926.07 of the Revised Code; 730
(B) Has failed to maintain accurate and complete records 732
and accounts as required under section 926.11 of the Revised 733
Code; 734
(C) Has failed to charge, collect, or remit the fee 736
17
required under division (B) of section 926.16 of the Revised 737
Code; 738
(D) Has refused to allow the director or his THE 740
DIRECTOR'S authorized representative to examine, at a reasonable 742
time, his THE APPLICANT'S OR LICENSEE'S accounting records, 744
accounts, agricultural commodity inventories, or warehouse; 745
(E) Does not have in his possession POSSESS sufficient 747
agricultural commodities to cover the outstanding receipts or 748
tickets issued or assumed by him THE APPLICANT OR LICENSEE under 749
bailment agreements; 750
(F) Has issued a receipt in violation of this chapter or 752
any rules adopted under it; 753
(G) Does not have the net assets specified in division (B) 755
of section 926.06 of the Revised Code or has failed to obtain a 756
bond or other protection for any deficiency in required net 757
assets as provided in that division; 758
(H) Does not have his THE obligations for agricultural 760
commodities purchased under delayed price agreements secured or 761
represented as required under division (B) or (C) of section 762
926.29 of the Revised Code; 763
(I) DOES NOT SUBMIT FINANCIAL STATEMENTS THAT COMPLY WITH 766
THE REQUIREMENTS OF DIVISION (C) OF SECTION 926.06 OF THE REVISED 768
CODE WITHIN THE APPLICABLE TIME PERIOD SPECIFIED IN THAT 770
DIVISION;
(J) DOES NOT NOTIFY THE DIRECTOR OF A STATUTORY AGENT'S 773
CHANGE OF ADDRESS OR OF THE DEATH, REMOVAL, RESIGNATION, OR 774
REVOCATION OF THE APPOINTMENT OF A STATUTORY AGENT OR DOES NOT 775
APPOINT ANOTHER AGENT IN ACCORDANCE WITH SECTION 926.051 OF THE 777
REVISED CODE. 778
The applicant or licensee to whom a denial or, suspension, 781
or conditional suspension order is issued shall be afforded a 782
hearing in accordance with Chapter 119. of the Revised Code, 783
after which the director shall issue or deny the license applied 784
for in the pending application or reinstate or revoke the 785
18
suspended or conditionally suspended license. The director may 786
suspend or, conditionally suspend, or revoke a license after a 788
hearing held in accordance with Chapter 119. of the Revised Code 789
for any other violations of this chapter or any rules adopted 790
under it. 791
The director shall cause a notice to be posted on the 793
property of a person whose license has been suspended, 794
conditionally suspended, or revoked stating the limitations or 795
restrictions imposed on the person in the handling of 796
agricultural commodities as a result of the suspension, 797
conditional suspension, or revocation. The notice shall not be 798
removed from the property without written authorization from the 799
director. 800
Sec. 926.16. (A) There is hereby created in the state 809
treasury the agricultural commodity depositors fund. The state 810
shall not be held liable for any claims presented against the 811
fund under section 926.18 of the Revised Code. The fund shall 812
consist of a per-bushel fee remitted by licensed handlers under 813
this section, any sums that the director of agriculture may 814
collect by any legal action on behalf of the fund, and any 815
property or securities acquired through the use of moneys in the 816
fund. The moneys collected under this section and deposited in 817
the fund shall be used exclusively to indemnify depositors as 818
provided in section 926.18 of the Revised Code and for no other 819
purpose. 820
(B) All licensed handlers shall remit such THE fee as is 822
determined by the director in accordance with section 926.17 of 823
the Revised Code on: 824
(1) All agricultural commodities delivered to them for 826
storage under a bailment agreement or for sale, exchange, or 827
negotiation or solicitation of sale by depositors who produced 828
them or caused them to be produced; 829
(2) All agricultural commodities delivered to them for 831
storage under a bailment agreement, regardless of who produced 832
19
the commodities, if a receipt is to be issued for the 833
commodities; 834
(3) All agricultural commodities that are being stored by 836
licensed handlers who own them solely, jointly, or in common with 837
others and who are issuing a receipt for them in accordance with 838
section 926.25 of the Revised Code. The maximum number of 839
bushels on which a licensed handler shall be required to pay the 840
fee under division (B)(3) of this section between the first day 841
of July and the thirtieth day of June of any marketing year shall 842
be the greatest number of bushels of all commodities for which 843
receipts are outstanding at any one time during that period. 844
(4) ALL AGRICULTURAL COMMODITIES THAT ARE NOT INVOLVED IN 846
A TRANSACTION DESCRIBED IN DIVISION (B)(1), (2), OR (3) OF THIS 847
SECTION AND THE MONETARY PROCEEDS OF WHICH ARE CONTROLLED BY A 848
HANDLER WHO IS NOT INVOLVED IN THE PRODUCTION OF THE COMMODITIES 850
AND WHO SERVES AS AN INTERMEDIARY BETWEEN THE PRODUCER AND A 851
HANDLER RECEIVING THE COMMODITIES. IN SUCH A SITUATION, THE
HANDLER RESPONSIBLE FOR PAYING THE PRODUCER SHALL REMIT THE FEE. 852
(C) All licensed handlers shall account for and remit 854
moneys under division (B) of this section to the director in such 855
manner and using such forms as the director shall prescribe by 856
rule. 857
(D) All disbursements from the fund shall be paid by the 859
treasurer of state pursuant to vouchers authorized by the 860
director. 861
(E) All interest earned by the fees collected under this 863
section shall be credited to the fund and, at the request of the 864
director of agriculture and to the extent necessary to pay the 865
examination and administrative costs of this chapter as provided 866
in section 926.19 of the Revised Code, may be transferred by the 867
director of budget and management to the commodity handler 868
regulatory program fund created in that section. 869
Sec. 926.18. (A) When a depositor has made a demand for 878
settlement of an obligation concerning an agricultural commodity 879
20
on which a fee was required to be remitted under section 926.16 880
of the Revised Code and the licensed handler has failed to honor 881
the demand, the depositor, after providing the director of 882
agriculture or his THE DIRECTOR'S authorized representative with 883
evidence of his THE DEPOSITOR'S demand and the dishonoring of his 885
THAT demand, may file a claim with the director NOT LATER THAN 886
SIX MONTHS AFTER DISHONOR OF THE DEMAND for indemnification of 887
his THE DEPOSITOR'S damages, from the agricultural commodity 888
depositors fund, to be measured as follows: 889
(1) The commodity advisory commission created in section 891
926.32 of the Revised Code shall establish the dollar value of 892
the loss incurred by a depositor holding a receipt or a ticket 893
for agricultural commodities on which a fee was required and that 894
he THE DEPOSITOR delivered to the handler under a delayed price 895
agreement or under a, bailment agreement, OR FEED AGREEMENT, OR 897
THAT THE DEPOSITOR DELIVERED TO THE HANDLER BEFORE DELIVERY WAS 898
DUE UNDER A CONTRACT OR OTHER AGREEMENT BETWEEN THE DEPOSITOR AND 899
HANDLER. The value shall be based on the fair market price being 901
paid to producers by handlers for the commodities on the date on 902
which the director received notice that the receipt or ticket was 903
dishonored by the handler. All depositors filing claims under 904
this division shall be bound by the value determined by the 905
commission.
(2) The dollar value of the loss incurred by a depositor 907
who has sold or delivered for sale, exchange, or solicitation or 908
negotiation for sale agricultural commodities on which a fee was 909
required and who is a creditor of the handler for all or a part 910
of the value of the commodities shall be based on the amount 911
stated on the obligation on the date of the sale. 912
(B) The agricultural commodity depositors fund shall be 914
liable to a depositor for any moneys that are not recovered 915
through other legal and equitable remedies as follows: 916
(1) For commodities stored with a licensed handler under a 918
bailment agreement for one hundred per cent of his THE 919
21
DEPOSITOR'S loss as determined under division (A)(1) of this 920
section;
(2) For commodities stored DEPOSITED with a licensed 922
handler under an agreement other than a bailment agreement for 924
one hundred per cent of the first ten thousand dollars of his THE 925
DEPOSITOR'S loss and eighty per cent of the remaining dollar 926
value of his THAT loss as determined under divisions (A)(1) and 927
(2) of this section. The aggregate amount recovered by a 929
depositor under all remedies shall not exceed one hundred per 930
cent of the value of his THE DEPOSITOR'S loss. If the moneys 931
recovered by a depositor under all remedies exceed one hundred 932
per cent of the value of his THE DEPOSITOR'S loss, the depositor 933
shall reimburse the fund in the amount that exceeds the value of
his THAT loss. 934
(C) The director, with the approval of the commodity 936
advisory commission, shall determine the validity of all claims 937
presented against the fund. A claim filed under this section for 938
losses on agricultural commodities other than commodities stored 939
under a bailment agreement shall not be valid unless the 940
depositor has made a demand for settlement of the obligation 941
within twelve months after the commodities are priced or 942
delivered for sale, whichever occurs later. Any depositor whose 943
claim has been refused by the director and the commission may 944
appeal the refusal to either TO the court of common pleas of 945
Franklin county or the court of common pleas of the county in 946
which the depositor resides. 947
The director shall provide for payment from the fund to any 949
depositor whose claim has been found to be valid. 950
(D) If at any time the fund does not contain sufficient 952
assets to pay valid claims, the director shall hold those claims 953
for payment until the fund again contains sufficient assets. 954
Claims against the fund shall be paid in the order in which they 955
are presented and found to be valid. 956
(E) If a depositor files an action for legal or equitable 958
22
remedies in a state or federal court having jurisdiction in those 959
matters that includes a claim against agricultural commodities 960
upon which the depositor may file a claim against the fund at a 961
later date, he THE DEPOSITOR ALSO shall also file with the 963
director a copy of the action filed with the court. 964
In the event of payment of a loss under this section, the 966
director shall be subrogated to the extent of the amount of any 967
payments to all rights, powers, privileges, and remedies of the 968
depositor against any person regarding the loss. 969
The depositor shall render all necessary assistance to aid 971
the director in securing the rights granted in this section. No 972
action or claim initiated by the depositor and pending at the 973
time of payment from the fund may be compromised or settled 974
without the consent of the director. 975
(F) If, prior to the effective date of this amendment JUNE 978
20, 1994, a lawsuit, adversary proceeding, or other legal 979
proceeding is brought against a depositor to recover money or
payments from funds to which a depositor has a right of 980
indemnification under this section, and the depositor retains 981
legal counsel resulting in a cost or expense to the depositor, 982
upon the rendering of a judgment or other resolution of the 983
lawsuit, adversary proceeding, or other legal proceeding, the 984
director, in his THE DIRECTOR'S discretion and with the approval 985
of the commodity advisory commission, may authorize
indemnification from the fund for attorney's fees paid by the 986
depositor. Any claim made by a depositor for the payment of 987
attorney's fees under this division shall be made in the same 988
manner as a claim under division (A) of this section. 989
Attorney's fees payable under this division shall be 991
limited to the actual hourly fee charged or one hundred dollars 992
per hour, whichever is less, and to a total maximum amount of 993
three hundred dollars.
Sec. 926.19. (A) There is hereby created in the state 1,002
treasury the commodity handler regulatory program fund. The 1,003
23
moneys in the fund shall be used to pay the examination and 1,004
administrative costs of this chapter and shall consist of: 1,005
(1) All revenues collected by the director of agriculture 1,007
from distribution of the receipt forms under division (B) of 1,008
section 926.20 of the Revised Code and such other forms and 1,009
registration books as the director may require by rule for the 1,010
administration of this chapter; 1,011
(2) The application and examination fees collected under 1,013
division (B) of section 926.05 of the Revised Code; 1,014
(3) The agricultural commodity tester certificate fees 1,016
collected under division (B) of section 926.30 of the Revised 1,017
Code; 1,018
(4) Interest income transferred from the agricultural 1,020
commodity depositors fund under section 926.16 of the Revised 1,021
Code; 1,022
(5) ALL FINES, PENALTIES, AND COSTS, EXCEPT COURT COSTS, 1,024
THAT ARE COLLECTED UNDER SECTION 926.99 OF THE REVISED CODE IN 1,025
CONSEQUENCE OF A VIOLATION OF THIS CHAPTER; 1,026
(6) ALL SUMS COLLECTED BY THE DIRECTOR OF AGRICULTURE 1,028
UNDER A CONTRACT DESCRIBED IN SECTION 926.36 OF THE REVISED CODE. 1,029
(B) The examination and administrative costs of this 1,031
chapter shall be computed by the director not later than the 1,032
thirty-first day of December of each even-numbered year to cover 1,033
the biennium that begins on the following first day of July. The 1,034
commodity advisory commission created in section 926.32 of the 1,035
Revised Code shall approve, and may amend, the examination and 1,036
administrative costs. The commission's decision shall be binding 1,037
on the director. The commission may also at any time MAY approve 1,039
for presentation to the controlling board a request to increase 1,040
or decrease the appropriation authority for the biennial 1,041
examination and administrative costs if it determines that an 1,042
increase or decrease in the cost is necessary to carry out the 1,043
purpose of this chapter. 1,044
(C) If at any time the moneys deposited in the fund, 1,046
24
including interest income transferred from the agricultural 1,047
commodity depositors fund under section 926.16 of the Revised 1,048
Code, are not sufficient to pay the examination and 1,049
administrative costs of this chapter, the director shall request 1,050
an appropriation from the general revenue fund to pay those 1,051
costs. 1,052
Sec. 926.29. (A) A delayed price agreement is an 1,061
executory contract which THAT shall be in such a form and contain 1,063
such terms as the director of agriculture shall adopt by rule 1,064
under Chapter 119. of the Revised Code. The agreement shall be 1,065
executed by and between the licensed handler and the depositor or 1,066
by their authorized representatives not later than fifteen days 1,067
after the first delivery of an agricultural commodity is received 1,068
for delayed pricing under the agreement. The handler shall 1,069
maintain a file of executed agreements that are available for 1,070
inspection at any reasonable time by the director or his THE 1,071
DIRECTOR'S designated representative. The handler ALSO shall 1,073
also keep records and ledgers the director considers necessary to 1,075
document the handler's obligation to the depositor under a 1,076
delayed price agreement. He THE HANDLER ALSO shall also provide 1,077
reports, forms, and other evidence the director shall adopt by 1,079
rule to document the storage and marketing of commodities under 1,080
the delayed price agreement.
(B) Except SUBJECT TO THE LIEN THAT ATTACHES UNDER SECTION 1,082
926.021 OF THE REVISED CODE AND EXCEPT as otherwise provided in 1,083
division (C) of this section, a licensed handler who purchases 1,084
any agricultural commodity under a delayed price agreement AT ALL 1,085
TIMES shall at all times maintain the commodity, rights in the 1,087
commodity, proceeds from the sale of the commodity, or a 1,088
combination of the commodity, rights, and proceeds equal to at 1,089
least ninety per cent of the value of his THE HANDLER'S 1,090
obligation for all commodities that he THE HANDLER has purchased 1,091
that are not priced under delayed price agreements. The 1,092
obligation shall be secured or represented by one or more of the 1,093
25
following: 1,094
(1) Maintenance of the commodity in storage in the 1,096
handler's warehouse; 1,097
(2) Rights in commodities as evidenced by a receipt or 1,099
ticket for storage of the commodities under a bailment agreement 1,100
in another warehouse approved by the director; 1,101
(3) Proceeds from the sale of commodities as evidenced or 1,103
represented by one or more of the following: 1,104
(a) Cash on hand or held on account in a state or 1,106
federally licensed financial institution or a lending agency of 1,107
the farm credit administration; 1,108
(b) Short-term investments held in time accounts with 1,110
state or federally licensed financial institutions or a lending 1,111
agency of the farm credit administration; 1,112
(c) Balances in commodity margin accounts; 1,114
(d) Commodities sold and shipped by the handler under 1,116
delayed price agreements that have not been priced less any 1,117
payments or advances that have been received by the handler; 1,118
(e) Such other evidence of unencumbered assets as may be 1,120
acceptable to the director, including an irrevocable letter of 1,121
credit. 1,122
(C) A IN ADDITION TO THE LIEN THAT ATTACHES UNDER SECTION 1,124
926.021 OF THE REVISED CODE, A depositor who sells an 1,125
agricultural commodity to a licensed handler under a delayed 1,126
price agreement may, upon giving notice to the handler either at 1,127
or prior to the time of delivery, MAY demand as security for 1,128
payment for the commodity an amount that, at the time of 1,129
delivery, is equal to one hundred per cent of the national loan 1,130
rate value of the commodity under the United States department of 1,131
agriculture price support program, or seventy-five per cent of 1,132
the average price being paid for the commodity in the state on 1,133
the date of demand as published by the market news service of the 1,134
department of agriculture, whichever is less. The handler shall 1,135
satisfy a demand for security on a commodity sold under a delayed 1,136
26
price agreement at the handler's option by one of the following: 1,137
(1) Payment to the depositor by cash or bank draft on the 1,139
account of the handler; 1,140
(2) Causing an irrevocable letter of credit to be issued 1,142
to the depositor by a bank designated by the handler securing 1,143
payment in the specified amount. The letter of credit shall be 1,144
subject to Chapter 1305. of the Revised Code and rules adopted by 1,145
the director pursuant to Chapter 119. of the Revised Code. 1,146
Sec. 926.30. (A) No licensed handler or employee of a 1,155
licensed handler who receives an agricultural commodity from a 1,156
producer, either for sale or for storage under a bailment 1,157
agreement, shall perform a quality test on the commodity for the 1,158
purpose of applying a premium, discount, or conditioning charge 1,159
unless the person making the test has completed a training course 1,160
or on-the-job training as an agricultural commodity tester PASSED 1,161
AN EXAMINATION ON THE SUBJECT THAT IS APPROVED BY THE DIRECTOR OF 1,162
AGRICULTURE. UPON APPLICATION BY A PERSON WHO HAS PASSED THE 1,163
EXAMINATION, THE DIRECTOR SHALL ISSUE TO THE PERSON AN 1,164
AGRICULTURAL COMMODITY TESTER CERTIFICATE THAT SHALL BE VALID FOR 1,165
A PERIOD OF THREE YEARS. EXCEPT AS OTHERWISE PROVIDED IN THIS 1,166
DIVISION, AN AGRICULTURAL COMMODITY TESTER SHALL PASS AN 1,167
EXAMINATION ON AGRICULTURAL COMMODITY TESTING APPROVED BY THE
DIRECTOR PRIOR TO EACH RENEWAL OF A CERTIFICATE. THE DIRECTOR 1,168
MAY EXEMPT FROM THE EXAMINATION REQUIREMENT FOR CERTIFICATE 1,169
RENEWAL AN AGRICULTURAL COMMODITY TESTER WHO, DURING THE YEAR 1,170
PRIOR TO EXPIRATION OF THE CERTIFICATE, SUCCESSFULLY COMPLETES 1,171
TRAINING ON AGRICULTURAL COMMODITY TESTING THAT HAS BEEN APPROVED 1,172
BY THE DIRECTOR. The director of agriculture shall establish by 1,173
rule the curriculum for the training course or on-the-job 1,174
STANDARDS THAT SUCH training that shall MUST MEET IN ORDER TO BE 1,176
APPROVED BY THE DIRECTOR. THE RULES SHALL REQUIRE THE TRAINING 1,177
TO include instructions in the use of the official grain 1,178
standards of the United States as a basis for determining the 1,179
quality of the commodities tested by an agricultural commodity 1,180
27
tester. AN AGRICULTURAL COMMODITY TESTER CERTIFICATE ISSUED 1,181
PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT SHALL BE CONSIDERED 1,182
TO BE VALID UNTIL THE DATE ON WHICH, AT THE TIME OF ISSUANCE, IT 1,183
WAS SCHEDULED TO EXPIRE. UPON EXPIRATION OF THE CERTIFICATE, THE 1,184
EXAMINATION REQUIREMENT FOR RENEWAL SHALL APPLY.
(B) Upon successful completion of the training required 1,186
under division (A) of this section and upon application by the 1,187
trainee, the director shall issue to an agricultural commodity 1,188
tester a certificate that shall be valid for a period of two 1,189
years. The director may determine that retraining or review is 1,190
necessary for the tester as a result of changes in or amendments 1,191
to the official grain standards of the United States, or if the 1,192
director has reason to believe that retraining is necessary as a 1,193
result of complaints relating to the tester's inability to 1,194
accurately test commodities according to the official grain 1,195
standards. A fee to cover the cost of issuing certificates and 1,196
administering the educational program shall be established by 1,197
rule of the director adopted under Chapter 119. of the Revised 1,198
Code and shall be deposited into the commodity handler regulatory 1,199
program fund created in section 926.19 of the Revised Code. 1,200
(C) The director may suspend or revoke the certificate of 1,202
an agricultural commodity tester in accordance with Chapter 119. 1,203
of the Revised Code for failure or inability of the tester to 1,204
apply the official grain standards of the United States in 1,205
testing the quality of an agricultural commodity. 1,206
Sec. 926.32. (A) There is hereby created the commodity 1,215
advisory commission consisting of seven members to be appointed 1,216
by the director of agriculture. Not later than January 1, 1983, 1,217
the director shall make appointments to the commission. Of the 1,218
initial appointments, three shall be for terms ending January 1, 1,219
1984, two shall be for terms ending January 1, 1985, and two 1,220
shall be for terms ending January 1, 1986. Thereafter, terms of 1,221
office shall be for three years, each term ending on the same day 1,222
of the same month of the year as did the term that it succeeds. 1,223
28
Each member shall hold office from the date of his appointment 1,224
until the end of the term for which he THE MEMBER was appointed. 1,225
Any member appointed to fill a vacancy occurring prior to the 1,227
expiration of the term for which his THE MEMBER'S predecessor was 1,228
appointed shall hold office for the remainder of the term. Any 1,230
member shall continue in office subsequent to the expiration date 1,231
of his THE MEMBER'S term until his THE MEMBER'S successor takes 1,233
office or until a period of sixty days has elapsed, whichever 1,234
occurs first.
(B) The commission shall at all times be composed of three 1,236
farmers who are primarily engaged PRIMARILY in the production of 1,237
agricultural commodities, one licensed handler who is the manager 1,238
of a farmers cooperative, one licensed handler who is the owner 1,239
and operator of a warehouse located in a rural area, one licensed 1,240
handler representing a warehouse located at a major agricultural 1,241
commodity transportation center, and one banker who is an officer 1,242
of a rural bank. The director shall annually designate ANNUALLY 1,243
one member of the commission to serve as its chairman CHAIRPERSON 1,245
and may, after notice and public hearing, MAY remove any member 1,247
only for neglect of duty or malfeasance in office. 1,248
(C) A vacancy on the commission shall not impair the right 1,250
of the other members to exercise all of the commission's powers. 1,251
Two farmer members and two handler members shall constitute a 1,252
quorum for the conduct of business of the commission. 1,253
(D) The commission shall meet in Columbus at least three 1,255
times annually at times that the commission shall set by rule and 1,256
may meet at other times that the chairman CHAIRPERSON or a 1,257
majority of the commission members considers appropriate; 1,259
provided, that no meeting shall be held on the call of the 1,260
chairman CHAIRPERSON unless at least seven days' written notice 1,262
is first given to all members of the commission. 1,263
(E) Each member shall be reimbursed for his THE MEMBER'S 1,265
actual and necessary expenses incurred in the discharge of his 1,267
duties as a commission member. 1,268
29
(F) The commission may adopt, amend, or rescind rules or 1,270
procedures governing the conduct of its internal affairs. 1,271
(G) The commission may request from the director, and the 1,273
director shall provide, meeting space, assistance, services, and 1,274
data to enable it to carry out its functions. 1,275
(H) All costs of the commission, including all of the 1,277
expenses of its members and consultants authorized in this 1,278
section, shall be paid from the commodity handler regulatory 1,279
program fund created in section 926.19 of the Revised Code 1,280
pursuant to itemized vouchers approved by the chairman 1,281
CHAIRPERSON of the commission and the director. 1,283
(I) The director shall designate an official or employee 1,285
of the department of agriculture to act as the executive 1,286
secretary of the commission. The director ALSO may also request 1,287
the attendance at meetings of the commission consultants with 1,289
expertise in agricultural law, marketing, statistics, or any 1,290
other subject to advise and consult with the commission on 1,291
matters on the agenda of any regular or special meeting of the 1,292
commission. The expenses incurred by consultants attending those 1,293
meetings shall be reimbursed according to division (H) of this 1,294
section. The executive secretary shall keep or cause to be kept 1,295
a permanent journal of all meetings, proceedings, findings, 1,296
determinations, and recommendations of the commission, including 1,297
an itemized statement of the expenses allowed to each member of 1,298
the commission and consultants under this section. The journal 1,299
shall be a public record. 1,300
(J) In addition to the authority granted in division (F) 1,302
of section 926.05, division (B) of section 926.17, divisions (A) 1,303
and (C) of section 926.18, and division (B) of section 926.19 of 1,304
the Revised Code, the commission shall advise and counsel the 1,305
director on all matters relating to: 1,306
(1) The administration of this chapter; 1,308
(2) The development of rules authorized by section 926.02 1,310
of the Revised Code; 1,311
30
(3) Any other matters that the commission and the director 1,313
consider appropriate in carrying out this chapter. 1,314
Sec. 926.36. THE DIRECTOR OF AGRICULTURE MAY ENTER INTO A 1,316
CONTRACT WITH A MARKETING ASSOCIATION THAT IS INVOLVED IN A 1,317
PROGRAM DESIGNED TO IMPROVE OR EXPAND THE MARKET FOR AN 1,318
AGRICULTURAL COMMODITY AND FUNDED BY AN ASSESSMENT THAT IS LEVIED 1,320
ON PRODUCERS OF THE AGRICULTURAL COMMODITY AND CALCULATED ON THE 1,321
BASIS OF THE VOLUME OF AGRICULTURAL COMMODITIES PRODUCED BY THE
PRODUCER. UNDER THE CONTRACT, THE MARKETING ASSOCIATION MAY 1,322
AGREE TO PAY THE DIRECTOR A MUTUALLY ACCEPTABLE SUM AND IN 1,323
EXCHANGE THE DIRECTOR MAY AGREE TO FURNISH THE MARKETING 1,324
ASSOCIATION WITH INFORMATION THAT THE DIRECTOR OBTAINS UNDER 1,325
SECTION 926.11 OF THE REVISED CODE REGARDING THE VOLUME OF 1,327
COMMODITIES PRODUCED BY PRODUCERS WHO PARTICIPATE IN THE 1,328
MARKETING PROGRAM, AND RELATED FINANCIAL INFORMATION. 1,329
THE MARKETING ASSOCIATION MAY USE THE INFORMATION TO 1,331
DETERMINE WHETHER A PRODUCER HAS TRUTHFULLY DISCLOSED THE VOLUME 1,332
OF AGRICULTURAL COMMODITIES PRODUCED BY THE PRODUCER AND WHETHER 1,333
THE MARKETING ASSOCIATION HAS RECEIVED THE CORRECT AMOUNT IN 1,334
ASSESSMENTS. 1,335
ANY SUM PAID TO THE DIRECTOR UNDER A CONTRACT ENTERED INTO 1,337
UNDER THIS SECTION SHALL BE DEPOSITED IN THE COMMODITY HANDLER 1,338
REGULATORY PROGRAM FUND CREATED IN SECTION 926.19 OF THE REVISED 1,340
CODE. 1,341
Sec. 926.99. (A) Whoever (1) EXCEPT AS PROVIDED IN 1,350
DIVISION (A)(2) OF THIS SECTION, WHOEVER violates section 926.04 1,351
of the Revised Code is guilty of a minor misdemeanor OF THE FIRST 1,353
DEGREE ON A FIRST OFFENSE AND A FELONY OF THE FIFTH DEGREE ON 1,354
EACH SUBSEQUENT OFFENSE.
(2) A PERSON WHO VIOLATES SECTION 926.04 OF THE REVISED 1,359
CODE AND WHO IS INSOLVENT AND FINANCIALLY UNABLE TO SATISFY A 1,360
CLAIMANT AS DEFINED IN SECTION 926.021 OF THE REVISED CODE IS 1,362
GUILTY OF A FELONY OF THE FIFTH DEGREE IF THE FINANCIAL 1,363
OBLIGATION OWED BY THE OFFENDER TO THE CLAIMANT IS FIVE HUNDRED 1,364
31
DOLLARS OR MORE AND IS LESS THAN FIVE THOUSAND DOLLARS. IF THE 1,365
FINANCIAL OBLIGATION IS FIVE THOUSAND DOLLARS OR MORE AND IS LESS 1,366
THAN ONE HUNDRED THOUSAND DOLLARS, THE OFFENDER IS GUILTY OF A 1,367
FELONY OF THE FOURTH DEGREE. IF THE FINANCIAL OBLIGATION IS ONE 1,368
HUNDRED THOUSAND DOLLARS OR MORE, THE OFFENDER IS GUILTY OF A 1,369
FELONY OF THE THIRD DEGREE. 1,370
(B) Whoever violates division (E) or (F) of section 926.20 1,372
or division (A) of section 926.22 of the Revised Code is guilty 1,373
of a minor misdemeanor on a first offense and a misdemeanor of 1,374
the second degree on each subsequent offense. 1,375
(C) Whoever violates division (G) of section 926.20 or 1,377
section 926.34 or 926.35 of the Revised Code is guilty of a 1,378
felony of the fourth degree. 1,379
(D) Whoever violates division (A) of section 926.28, or 1,383
division (B) of section 926.29, of the Revised Code is guilty of
a felony of the fifth degree. 1,384
(E) Whoever violates section 926.31 of the Revised Code is 1,386
guilty of a misdemeanor of the fourth degree. 1,387
Sec. 4513.32. When one vehicle is towing another vehicle, 1,396
the drawbar or other connection shall be of sufficient strength 1,397
to pull all the weight towed thereby, and the drawbar or other 1,398
connection shall not exceed fifteen feet from one vehicle to the 1,399
other, except the connection between any two vehicles 1,400
transporting poles, pipe, machinery, or other objects of 1,401
structural nature which cannot readily be dismembered. 1,402
When one vehicle is towing another and the connection 1,404
consists only of a chain, rope, or cable, there shall be 1,405
displayed upon such connection a white flag or cloth not less 1,406
than twelve inches square. 1,407
In addition to such drawbar or other connection, each 1,409
trailer and each semitrailer which is not connected to a 1,410
commercial tractor by means of a fifth wheel shall be coupled 1,411
with stay chains or cables to the vehicle by which it is being 1,412
drawn. The chains or cables shall be of sufficient size and 1,413
32
strength to prevent the towed vehicle's parting from the drawing 1,414
vehicle in case the drawbar or other connection should break or 1,415
become disengaged. In case of a loaded pole trailer, the 1,416
connecting pole to the drawing vehicle shall be coupled to the 1,417
drawing vehicle with stay chains or cables of sufficient size and 1,418
strength to prevent the towed vehicle's parting from the drawing 1,419
vehicle. 1,420
Every trailer or semitrailer, except pole and cable 1,422
trailers and pole and cable dollies operated by a public utility 1,423
as defined in section 5727.01 of the Revised Code, shall be 1,424
equipped with a coupling device, which shall be so designed and 1,425
constructed that the trailer will follow substantially in the 1,426
path of the vehicle drawing it, without whipping or swerving from 1,427
side to side. Vehicles used to transport agricultural produce or 1,428
agricultural production materials between a local place of 1,429
storage and supply and the farm, when drawn or towed on a street 1,430
or highway at a speed of twenty-five miles per hour or less, and 1,431
vehicles designed and used exclusively to transport a boat 1,432
between a place of storage and a marina, or in and around a 1,433
marina, when drawn or towed on a street or highway for a distance 1,434
of no more than ten miles and at a speed of twenty-five miles per 1,435
hour or less, shall have a drawbar or other connection, including 1,436
the hitch mounted on the towing vehicle, which shall be of 1,437
sufficient strength to pull all the weight towed thereby. Only 1,438
one such vehicle used to transport agricultural produce or 1,439
agricultural production materials as provided in this section may 1,440
be towed or drawn at one time unless the towing vehicle is an 1,441
agricultural tractor, EXCEPT AS FOLLOWS: 1,442
(A) AN AGRICULTURAL TRACTOR MAY TOW OR DRAW MORE THAN ONE 1,445
SUCH VEHICLE;
(B) A PICKUP TRUCK OR STRAIGHT TRUCK DESIGNED BY THE 1,448
MANUFACTURER TO CARRY A LOAD OF NOT LESS THAN ONE-HALF TON AND 1,449
NOT MORE THAN TWO TONS MAY TOW OR DRAW NOT MORE THAN TWO SUCH 1,450
VEHICLES THAT ARE BEING USED TO TRANSPORT AGRICULTURAL PRODUCE 1,451
33
FROM THE FARM TO A LOCAL PLACE OF STORAGE. NO VEHICLE BEING SO 1,452
TOWED BY SUCH A PICKUP TRUCK OR STRAIGHT TRUCK SHALL BE 1,453
CONSIDERED TO BE A MOTOR VEHICLE.
Sec. 5577.042. (A) AS USED IN THIS SECTION: 1,455
(1) "FARM MACHINERY" HAS THE SAME MEANING AS IN SECTION 1,457
4501.01 OF THE REVISED CODE. 1,459
(2) "FARM COMMODITIES" INCLUDES LIVESTOCK, BULK MILK, 1,462
CORN, SOYBEANS, TOBACCO, AND WHEAT.
(3) "FARM TRUCK" MEANS A TRUCK USED IN THE TRANSPORTATION 1,464
FROM A FARM OF FARM COMMODITIES WHEN THE TRUCK IS OPERATED IN 1,465
ACCORDANCE WITH THIS SECTION. 1,466
(4) "LOG TRUCK" MEANS A TRUCK USED IN THE TRANSPORTATION 1,468
OF TIMBER FROM THE SITE OF ITS CUTTING WHEN THE TRUCK IS OPERATED 1,469
IN ACCORDANCE WITH THIS SECTION. 1,470
(B) NOTWITHSTANDING SECTIONS 5577.02 AND 5577.04 OF THE 1,474
REVISED CODE, A FARM TRUCK OR FARM MACHINERY TRANSPORTING FARM 1,475
COMMODITIES, OR A LOG TRUCK TRANSPORTING TIMBER, FROM THE PLACE 1,477
OF PRODUCTION TO THE FIRST POINT OF DELIVERY WHERE THE
COMMODITIES ARE WEIGHED AND TITLE TO THE COMMODITIES OR TIMBER IS 1,479
TRANSFERRED, MAY EXCEED BY NO MORE THAN FIVE PER CENT THE WEIGHT 1,480
PROVISIONS OF SECTIONS 5577.01 TO 5577.09 OF THE REVISED CODE AND 1,482
NO PENALTY PRESCRIBED IN SECTION 5577.99 OF THE REVISED CODE 1,483
SHALL BE IMPOSED. IF A FARM TRUCK OR FARM MACHINERY SO 1,484
TRANSPORTING FARM COMMODITIES, OR A TIMBER TRUCK SO TRANSPORTING
TIMBER, EXCEEDS BY MORE THAN FIVE PER CENT THE WEIGHT PROVISIONS 1,485
OF THOSE SECTIONS, BOTH OF THE FOLLOWING APPLY WITHOUT REGARD TO 1,486
THE FIVE PER CENT ALLOWANCE PROVIDED BY THIS DIVISION: 1,488
(1) THE APPLICABLE PENALTY PRESCRIBED IN SECTION 5577.99 1,490
OF THE REVISED CODE;
(2) THE CIVIL LIABILITY IMPOSED BY SECTION 5577.12 OF THE 1,492
REVISED CODE.
(C)(1) DIVISION (B) OF THIS SECTION DOES NOT APPLY TO THE 1,495
OPERATION OF A FARM TRUCK, LOG TRUCK, OR FARM MACHINERY
TRANSPORTING FARM COMMODITIES DURING THE MONTHS OF FEBRUARY AND 1,497
34
MARCH.
(2) REGARDLESS OF WHEN THE OPERATION OCCURS, DIVISION (B) 1,499
OF THIS SECTION DOES NOT APPLY TO THE OPERATION OF A FARM TRUCK, 1,500
LOG TRUCK, OR FARM MACHINERY TRANSPORTING FARM COMMODITIES ON 1,501
EITHER OF THE FOLLOWING: 1,502
(a) A HIGHWAY THAT IS PART OF THE INTERSTATE SYSTEM; 1,504
(b) A HIGHWAY, ROAD, OR BRIDGE THAT IS SUBJECT TO REDUCED 1,506
MAXIMUM WEIGHTS UNDER SECTION 4513.33, 5577.07, 5577.071, 1,507
5577.08, 5577.09, OR 5591.42 OF THE REVISED CODE. 1,509
Section 2. That existing sections 926.01, 926.021, 926.05, 1,511
926.06, 926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 926.32, 1,512
926.99, and 4513.32 of the Revised Code are hereby repealed. 1,513