As Passed by the Senate 1
122nd General Assembly 4
Regular Session Am. 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-GARDNER 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.
2
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
3
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
4
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
5
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
6
"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
7
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
8
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 FULLY 363
for the agricultural commodity and the handler failed within 364
twenty-one days after the surrender. 365
(2) Second priority against all agricultural commodity 367
assets shall be to claimants who possess written evidence of the 368
sale of an agricultural commodity, including, but not limited to, 370
tickets, delayed price agreements, or similar agricultural 371
commodity delivery contracts who completed delivery and pricing 372
within thirty days immediately prior to the failure of the 373
handler. 374
9
(3) To the extent not necessary to satisfy first and 376
second priority claimants, all other claimants who possess 377
written evidence of the sale of agricultural commodities to the 378
failed handler shall participate in the pro rata distribution of 379
the remainder of the agricultural commodity assets in an amount 380
not to exceed the value of their EACH claim. 381
(E) In the event that any adversary proceeding is 383
commenced to recover agricultural commodity assets upon which the 384
lien imposed in this section is imposed and the department of 385
agriculture declines to enter the proceeding, the director of 386
agriculture, upon application to him THE DIRECTOR by any 387
claimant, shall assign to the claimant the applicable lien to 389
permit the claimant to pursue his THE CLAIMANT'S lien in the 390
adversary proceeding to the extent the action will not delay the 392
resolution of the proceeding, the prompt liquidation of the 393
assets, or the ultimate distribution of the assets of TO all 394
claimants.
Sec. 926.05. (A) Each person desiring to obtain or renew 403
a handler's license shall file an application annually with the 404
director of agriculture at such times, on such forms, and 405
containing such information as he THE DIRECTOR prescribes, 407
INCLUDING, IF APPLICABLE, THE APPOINTMENT OF A STATUTORY AGENT 408
UNDER SECTION 926.051 OF THE REVISED CODE.
(B) Each application for a license or license renewal 410
shall be accompanied by an application fee of two hundred dollars 411
for the first facility operated by the applicant plus one hundred 412
dollars for each additional facility operated by the same 413
applicant and by an examination fee, established by rule of the 414
director pursuant to section 926.02 of the Revised Code, for each 415
facility operated by the applicant. "Facility" means all 416
warehouse storage located on one premises, including any 417
additional warehouse storage located within one thousand yards of 418
that premises. The director may charge fees for examinations in 419
an amount not to exceed those fees charged by the United States 420
10
department of agriculture for comparable examinations. 421
The director shall deposit all fees collected under this 423
section in the commodity handler regulatory program fund created 424
in section 926.19 of the Revised Code. 425
(C) The director shall approve or reject each application 427
for a license within fifteen days after receipt thereof, provided 428
that such application is in proper form and contains the 429
information required under division (A) of this section. A 430
rejection of an application shall be accompanied by a statement 431
from the director of the additional requirements necessary for a 432
license. The applicant may resubmit his THE application without 433
payment of any additional fee. 434
(D) A handler's license shall expire on the date 436
prescribed by rule of the director. Whenever the director 437
considers it advisable to cancel the unexpired portion of an 438
outstanding license in order to renew it according to a new or 439
existing system of expiration dates, he THE DIRECTOR shall refund 441
to the handler the unexpired portion of the fees paid under 442
division (B) of this section. Whenever the director issues an 443
initial license on a date that does not conform to the existing 444
system, he THE DIRECTOR shall issue the license for whatever A 446
period of time, not less than six nor more than eighteen months, 448
that makes it THE DATE conform to the existing system. The 450
application fee for that initial license shall be proportionate 451
to the fee for a one-year license.
(E) An application for renewal of a handler's license 453
shall be filed with the director not later than thirty days 454
before the current license expires. An applicant who fails to 455
file a renewal application in time shall pay a late fee of one 456
dollar for each day the application is late or fifteen dollars, 457
whichever is greater. A renewal license shall not be issued 458
until a late fee that is due has been paid. 459
(F) The director, with the approval of the commodity 461
advisory commission, may revoke or refuse to issue or renew a 462
11
handler's license if any of the following occurred within five 463
years before the application for the license or renewal was 464
filed: 465
(1) The applicant, or the spouse, parent, sibling, or 467
child of the applicant, or a manager employed by the applicant, 468
or any other individual materially involved in the agricultural 469
commodity handling business of the applicant was a principal in a 470
receivership or insolvency that resulted in losses to creditors 471
or to the agricultural commodity depositors fund established in 472
section 926.16 of the Revised Code; 473
(2) The applicant pled guilty to or was convicted of any 475
felony or charge of embezzlement under the laws of this state, 476
any other state, or of the United States; 477
(3) The applicant made a delivery of commodities not 479
authorized under this chapter; 480
(4) The applicant's license under the "United States 482
Warehouse Act," 39 Stat. 486 (1916), 7 U.S.C. 241, as amended, 483
was revoked or canceled due to a violation of that act. 484
Sec. 926.051. (A) AN APPLICANT FOR A HANDLER'S LICENSE OR 487
RENEWAL ISSUED UNDER SECTION 926.05 OF THE REVISED CODE WHO DOES 489
NOT CONDUCT BUSINESS AT AN ADDRESS IN THIS STATE AT WHICH THE 490
APPLICANT USUALLY CAN BE CONTACTED SHALL INCLUDE WITH THE 491
APPLICATION A WRITTEN APPOINTMENT OF AN AGENT, SOMETIMES REFERRED 492
TO AS A "STATUTORY AGENT," UPON WHOM ANY PROCESS, NOTICE, OR 493
DEMAND MAY BE SERVED. THE APPOINTMENT SHALL BE ACCOMPANIED BY A 494
WRITTEN ACCEPTANCE OF THE APPOINTMENT SIGNED BY THE AGENT. THE 495
AGENT MAY BE A NATURAL PERSON WHO IS A RESIDENT OF THIS STATE OR 496
A CORPORATION WHOSE PRINCIPAL PLACE OF BUSINESS IS LOCATED IN 497
THIS STATE. THE APPOINTMENT SHALL BE ON SUCH FORMS AND CONTAIN 498
SUCH INFORMATION AS THE DIRECTOR OF AGRICULTURE PRESCRIBES. 499
FAILURE TO COMPLY WITH THIS DIVISION IS GROUNDS FOR REJECTION OF 500
THE APPLICATION UNDER DIVISION (C) OF SECTION 926.05 OF THE 503
REVISED CODE. 504
(B)(1) IF AN AGENT REMOVES FROM THE STATE OR RESIGNS, OR 507
12
IF THE APPLICANT REVOKES THE AGENT'S APPOINTMENT, THE APPLICANT 508
IMMEDIATELY SHALL NOTIFY THE DIRECTOR IN WRITING NOT LATER THAN 509
THIRTY DAYS PRIOR TO THE REMOVAL, RESIGNATION, OR REVOCATION. IF 510
AN AGENT DIES, THE APPLICANT IMMEDIATELY SHALL NOTIFY THE 511
DIRECTOR IN WRITING. PRIOR TO THE REMOVAL, RESIGNATION, OR 512
REVOCATION AND NOT LATER THAN THIRTY DAYS AFTER THE DEATH, THE 513
APPLICANT SHALL APPOINT ANOTHER AGENT AND FILE WITH THE DIRECTOR 514
A WRITTEN APPOINTMENT OF THE AGENT, ALONG WITH A WRITTEN 515
ACCEPTANCE OF THE APPOINTMENT SIGNED BY THE AGENT. 516
(2) IF THE AGENT'S ADDRESS CHANGES FROM THAT APPEARING ON 518
THE APPLICATION, THE APPLICANT, NOT LATER THAN THIRTY DAYS PRIOR 519
TO THE ADDRESS CHANGE, SHALL FILE WITH THE DIRECTOR A WRITTEN 520
STATEMENT SETTING FORTH THE NEW ADDRESS, ALONG WITH ANY OTHER 521
INFORMATION THE DIRECTOR REQUESTS. 522
(C) FAILURE TO COMPLY WITH DIVISION (B) OF THIS SECTION IS 526
GROUNDS FOR SUSPENSION OR CONDITIONAL SUSPENSION OF A HANDLER'S 527
LICENSE, WITHOUT PRIOR HEARING, UNDER SECTION 926.10 OF THE 528
REVISED CODE. 529
Sec. 926.06. (A) The director of agriculture may issue a 538
handler's license, or renewal thereof, upon the payment of the 539
prescribed application fee, if the director is satisfied that the 540
applicant meets the standards of financial responsibility 541
required under this section and has complied with this chapter 542
and the rules adopted under it. 543
(B) Each (1) ON THE EFFECTIVE DATE OF THIS AMENDMENT, 545
EACH applicant for a handler's license, or renewal thereof, shall 547
have and maintain current assets equal to or greater than current 548
liabilities and a total net worth of EQUAL TO at least ten cents 550
per bushel for the total number of bushels of agricultural 551
commodities that he THE APPLICANT handled during the immediately 552
preceding twelve-month period to cover any indebtedness arising 553
from his THE APPLICANT'S operations as a licensed handler. If 555
ONE YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THE TOTAL 557
NET WORTH REQUIREMENT SHALL INCREASE TO ELEVEN CENTS PER BUSHEL. 558
13
FOR THE NEXT FOUR YEARS, THE REQUIREMENT SHALL CONTINUE TO 559
INCREASE BY ONE CENT PER BUSHEL EACH YEAR ON THE ANNIVERSARY OF 560
THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE YEARS AFTER 561
THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S TOTAL NET 562
WORTH SHALL BE EQUAL TO AT LEAST FIFTEEN CENTS PER BUSHEL FOR THE
TOTAL NUMBER OF BUSHELS OF AGRICULTURAL COMMODITIES THAT THE 563
APPLICANT HANDLED DURING THE IMMEDIATELY PRECEDING TWELVE-MONTH 564
PERIOD. 565
(2) ON THE EFFECTIVE DATE OF THIS AMENDMENT, IF an 567
applicant is applying for a handler's license for the first time 568
and did not handle any agricultural commodities during the 569
immediately preceding twelve-month period, he THE APPLICANT shall 570
have an allowable total net worth of at least twenty-five 572
thousand dollars for that purpose. No TO COVER ANY INDEBTEDNESS 574
ARISING FROM THE APPLICANT'S OPERATIONS AS A LICENSED HANDLER. 575
ONE YEAR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THIS
ALLOWABLE TOTAL NET WORTH REQUIREMENT SHALL INCREASE TO THIRTY 576
THOUSAND DOLLARS. FOR THE NEXT FOUR YEARS, THE REQUIREMENT SHALL 578
CONTINUE TO INCREASE BY FIVE THOUSAND DOLLARS EACH YEAR ON THE 579
ANNIVERSARY OF THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE 580
YEARS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S 581
TOTAL NET WORTH SHALL BE AT LEAST FIFTY THOUSAND DOLLARS. 582
(3) ON THE EFFECTIVE DATE OF THIS AMENDMENT, NO person 585
shall be licensed as a handler unless he THE PERSON has an 586
allowable total net worth of at least twenty-five thousand
dollars. Any ONE YEAR AFTER THE EFFECTIVE DATE OF THIS 588
AMENDMENT, THIS ALLOWABLE TOTAL NET WORTH REQUIREMENT SHALL 589
INCREASE TO THIRTY THOUSAND DOLLARS. FOR THE NEXT FOUR YEARS, 590
THE REQUIREMENT SHALL CONTINUE TO INCREASE BY FIVE THOUSAND 591
DOLLARS EACH YEAR ON THE ANNIVERSARY OF THE EFFECTIVE DATE OF 592
THIS AMENDMENT, SO THAT FIVE YEARS AFTER THE EFFECTIVE DATE OF 593
THIS AMENDMENT, THE PERSON'S TOTAL NET WORTH SHALL BE AT LEAST 594
FIFTY THOUSAND DOLLARS. 595
(4) ON THE EFFECTIVE DATE OF THIS AMENDMENT, ANY 597
14
deficiency in required total net worth may be compensated for by 599
an indemnity agreement executed by a person pledging personal 600
assets for the benefit of commodity creditors should the licensed 601
handler default in his THE LICENSED HANDLER'S obligations to the 602
creditors; a bond issued by a corporate surety company that is 603
authorized to do business under the laws of this state; or, at 604
the director's discretion, an irrevocable letter of credit issued 605
by a bank or other lending institution that is authorized by this 606
state or the United States to issue such letters of credit and is 607
subject to service of process in this state for any suit on the 608
bond or letter of credit. AN INDEMNITY AGREEMENT EXECUTED BY A 610
PERSON PLEDGING PERSONAL ASSETS SHALL BE ACCOMPANIED BY FINANCIAL 611
STATEMENTS THAT REFLECT THE PERSON'S FINANCIAL POSITION AS AN 612
INDIVIDUAL AND COMPLY WITH THE REQUIREMENTS OF DIVISION (C) OF 614
THIS SECTION. A bond shall be made to the treasurer of the state 616
of Ohio to be deposited in the agricultural commodity depositors 617
fund created under section 926.16 of the Revised Code for the 618
benefit of any person who may be injured by the handler's failure 619
to meet obligations arising under this chapter. A letter of 620
credit shall be issued for the benefit of the department of 621
agriculture and the agricultural commodity depositors fund. 622
In (5) THE DIRECTOR SHALL ADOPT RULES IN ACCORDANCE WITH 625
CHAPTER 119. OF THE REVISED CODE SPECIFYING THE ASSETS FOR WHICH 628
CREDIT MAY BE GIVEN IN determining AN APPLICANT'S total net 629
worth, credit may be given for fixed assets such as buildings, 630
machinery, and equipment, in the amount of the insured value of 631
such assets under a policy of insurance against loss or damage 633
or, at the discretion of the director, in the amount of their 634
current market value as determined by an accredited rural 635
appraiser or an appraiser certified by the American appraisal 637
institute. The appraiser shall be completely independent of any 639
relationship with the handler. Capital stock shall not be 640
considered a liability for the purpose of determining total net 641
worth. Regardless.
15
(6) ON THE EFFECTIVE DATE OF THIS AMENDMENT, REGARDLESS of 643
the total number of bushels of agricultural commodities that he 645
AN APPLICANT handled during the immediately preceding 647
twelve-month period, an THE applicant's total net worth need not 649
exceed A MAXIMUM OF three hundred thousand dollars. ONE YEAR 651
AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, THIS MAXIMUM TOTAL 652
NET WORTH NEED NOT EXCEED THREE HUNDRED THIRTY THOUSAND DOLLARS. 653
FOR THE NEXT FOUR YEARS, THIS MAXIMUM TOTAL NET WORTH SHALL 654
CONTINUE TO INCREASE BY THIRTY THOUSAND DOLLARS EACH YEAR ON THE 655
ANNIVERSARY OF THE EFFECTIVE DATE OF THIS AMENDMENT, SO THAT FIVE 656
YEARS AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, AN APPLICANT'S 657
TOTAL NET WORTH NEED NOT EXCEED FOUR HUNDRED FIFTY THOUSAND 658
DOLLARS.
(C) In order for the director to determine if an applicant 660
meets the standards of financial responsibility required under 661
division (B) of this section, the applicant for a handler's 662
license, or renewal of a handler's license, shall submit a 663
current financial statement STATEMENTS THAT HAVE BEEN prepared IN 665
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THAT 666
HAVE BEEN AUDITED OR REVIEWED by a qualified person who is not 667
directly associated with the applicant's business AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT. The financial statement STATEMENTS 669
shall consist of a THE APPLICANT'S balance sheet showing the 670
current and deferred assets and liabilities of the applicant, a, 671
INCOME statement of income, a statement of retained earnings OR 673
STATEMENT OF STOCKHOLDER'S EQUITY, a AND statement of changes in 675
financial position CASH FLOWS, and whatever notes are sufficient 677
to explain the details contained in the financial statement 678
TOGETHER WITH ANY EXPLANATORY FOOTNOTES OR SUPPLEMENTARY
INFORMATION ACCOMPANYING THESE STATEMENTS AND WITH THE 679
INDEPENDENT ACCOUNTANT'S REPORT ON THE STATEMENTS. 680
The financial statement STATEMENTS accompanying an 682
applicant's original application shall show a statement closing 683
date that is BE FOR A YEAR ENDING within six months of BEFORE the 685
16
date of application. Thereafter, the applicant applying for 687
renewal shall submit an annual statement SUCH STATEMENTS not 689
later than ninety days after the close END of his business THE 690
year COVERED BY THE STATEMENTS.
The director may require an applicant for a handler's 692
license, or renewal of a handler's license, to submit a financial 693
statement prepared STATEMENTS AUDITED by a AN INDEPENDENT 695
certified public accountant licensed under the laws of this 696
state, and may require the attachment to the statement of the 697
accountant's opinion of the applicant's financial status based on 698
his examination of the records conducted in accordance with 699
generally accepted auditing standards if the director determines 700
that the first financial statement STATEMENTS INITIALLY submitted 701
under this division is ARE incomplete or otherwise 703
unsatisfactory.
(D) The director may prepare and publish statistical 705
abstracts of information obtained under this section without 706
disclosing details that would identify a particular applicant 707
with particular statistics. Such information OTHERWISE is 708
otherwise confidential for purposes of section 102.03 of the 710
Revised Code, and records of the department of agriculture 711
containing such information are not otherwise public records 712
under section 149.43 of the Revised Code. 713
Sec. 926.10. The director of agriculture may, by order, 722
MAY refuse to grant or may suspend or conditionally suspend a 724
handler's license, without prior hearing, when he THE DIRECTOR 725
determines that there is reasonable cause to believe that the 727
applicant or licensee: 728
(A) Has failed to maintain the insurance coverage required 730
under section 926.07 of the Revised Code; 731
(B) Has failed to maintain accurate and complete records 733
and accounts as required under section 926.11 of the Revised 734
Code; 735
(C) Has failed to charge, collect, or remit the fee 737
17
required under division (B) of section 926.16 of the Revised 738
Code; 739
(D) Has refused to allow the director or his THE 741
DIRECTOR'S authorized representative to examine, at a reasonable 743
time, his THE APPLICANT'S OR LICENSEE'S accounting records, 745
accounts, agricultural commodity inventories, or warehouse; 746
(E) Does not have in his possession POSSESS sufficient 748
agricultural commodities to cover the outstanding receipts or 749
tickets issued or assumed by him THE APPLICANT OR LICENSEE under 750
bailment agreements; 751
(F) Has issued a receipt in violation of this chapter or 753
any rules adopted under it; 754
(G) Does not have the net assets specified in division (B) 756
of section 926.06 of the Revised Code or has failed to obtain a 757
bond or other protection for any deficiency in required net 758
assets as provided in that division; 759
(H) Does not have his THE obligations for agricultural 761
commodities purchased under delayed price agreements secured or 762
represented as required under division (B) or (C) of section 763
926.29 of the Revised Code; 764
(I) DOES NOT SUBMIT FINANCIAL STATEMENTS THAT COMPLY WITH 767
THE REQUIREMENTS OF DIVISION (C) OF SECTION 926.06 OF THE REVISED 769
CODE WITHIN THE APPLICABLE TIME PERIOD SPECIFIED IN THAT 771
DIVISION;
(J) DOES NOT NOTIFY THE DIRECTOR OF A STATUTORY AGENT'S 774
CHANGE OF ADDRESS OR OF THE DEATH, REMOVAL, RESIGNATION, OR 775
REVOCATION OF THE APPOINTMENT OF A STATUTORY AGENT OR DOES NOT 776
APPOINT ANOTHER AGENT IN ACCORDANCE WITH SECTION 926.051 OF THE 778
REVISED CODE. 779
The applicant or licensee to whom a denial or, suspension, 782
or conditional suspension order is issued shall be afforded a 783
hearing in accordance with Chapter 119. of the Revised Code, 784
after which the director shall issue or deny the license applied 785
for in the pending application or reinstate or revoke the 786
18
suspended or conditionally suspended license. The director may 787
suspend or, conditionally suspend, or revoke a license after a 789
hearing held in accordance with Chapter 119. of the Revised Code 790
for any other violations of this chapter or any rules adopted 791
under it. 792
The director shall cause a notice to be posted on the 794
property of a person whose license has been suspended, 795
conditionally suspended, or revoked stating the limitations or 796
restrictions imposed on the person in the handling of 797
agricultural commodities as a result of the suspension, 798
conditional suspension, or revocation. The notice shall not be 799
removed from the property without written authorization from the 800
director. 801
Sec. 926.16. (A) There is hereby created in the state 810
treasury the agricultural commodity depositors fund. The state 811
shall not be held liable for any claims presented against the 812
fund under section 926.18 of the Revised Code. The fund shall 813
consist of a per-bushel fee remitted by licensed handlers under 814
this section, any sums that the director of agriculture may 815
collect by any legal action on behalf of the fund, and any 816
property or securities acquired through the use of moneys in the 817
fund. The moneys collected under this section and deposited in 818
the fund shall be used exclusively to indemnify depositors as 819
provided in section 926.18 of the Revised Code and for no other 820
purpose. 821
(B) All licensed handlers shall remit such THE fee as is 823
determined by the director in accordance with section 926.17 of 824
the Revised Code on: 825
(1) All agricultural commodities delivered to them for 827
storage under a bailment agreement or for sale, exchange, or 828
negotiation or solicitation of sale by depositors who produced 829
them or caused them to be produced; 830
(2) All agricultural commodities delivered to them for 832
storage under a bailment agreement, regardless of who produced 833
19
the commodities, if a receipt is to be issued for the 834
commodities; 835
(3) All agricultural commodities that are being stored by 837
licensed handlers who own them solely, jointly, or in common with 838
others and who are issuing a receipt for them in accordance with 839
section 926.25 of the Revised Code. The maximum number of 840
bushels on which a licensed handler shall be required to pay the 841
fee under division (B)(3) of this section between the first day 842
of July and the thirtieth day of June of any marketing year shall 843
be the greatest number of bushels of all commodities for which 844
receipts are outstanding at any one time during that period. 845
(4) ALL AGRICULTURAL COMMODITIES THAT ARE NOT INVOLVED IN 847
A TRANSACTION DESCRIBED IN DIVISION (B)(1), (2), OR (3) OF THIS 848
SECTION AND THE MONETARY PROCEEDS OF WHICH ARE CONTROLLED BY A 849
HANDLER WHO IS NOT INVOLVED IN THE PRODUCTION OF THE COMMODITIES 851
AND WHO SERVES AS AN INTERMEDIARY BETWEEN THE PRODUCER AND A 852
HANDLER RECEIVING THE COMMODITIES. IN SUCH A SITUATION, THE
HANDLER RESPONSIBLE FOR PAYING THE PRODUCER SHALL REMIT THE FEE. 853
(C) All licensed handlers shall account for and remit 855
moneys under division (B) of this section to the director in such 856
manner and using such forms as the director shall prescribe by 857
rule. 858
(D) All disbursements from the fund shall be paid by the 860
treasurer of state pursuant to vouchers authorized by the 861
director. 862
(E) All interest earned by the fees collected under this 864
section shall be credited to the fund and, at the request of the 865
director of agriculture and to the extent necessary to pay the 866
examination and administrative costs of this chapter as provided 867
in section 926.19 of the Revised Code, may be transferred by the 868
director of budget and management to the commodity handler 869
regulatory program fund created in that section. 870
Sec. 926.18. (A) When a depositor has made a demand for 879
settlement of an obligation concerning an agricultural commodity 880
20
on which a fee was required to be remitted under section 926.16 881
of the Revised Code and the licensed handler has failed to honor 882
the demand, the depositor, after providing the director of 883
agriculture or his THE DIRECTOR'S authorized representative with 884
evidence of his THE DEPOSITOR'S demand and the dishonoring of his 886
THAT demand, may file a claim with the director NOT LATER THAN 887
SIX MONTHS AFTER DISHONOR OF THE DEMAND for indemnification of 888
his THE DEPOSITOR'S damages, from the agricultural commodity 889
depositors fund, to be measured as follows: 890
(1) The commodity advisory commission created in section 892
926.32 of the Revised Code shall establish the dollar value of 893
the loss incurred by a depositor holding a receipt or a ticket 894
for agricultural commodities on which a fee was required and that 895
he THE DEPOSITOR delivered to the handler under a delayed price 896
agreement or under a, bailment agreement, OR FEED AGREEMENT, OR 898
THAT THE DEPOSITOR DELIVERED TO THE HANDLER BEFORE DELIVERY WAS 899
DUE UNDER A CONTRACT OR OTHER AGREEMENT BETWEEN THE DEPOSITOR AND 900
HANDLER. The value shall be based on the fair market price being 902
paid to producers by handlers for the commodities on the date on 903
which the director received notice that the receipt or ticket was 904
dishonored by the handler. All depositors filing claims under 905
this division shall be bound by the value determined by the 906
commission.
(2) The dollar value of the loss incurred by a depositor 908
who has sold or delivered for sale, exchange, or solicitation or 909
negotiation for sale agricultural commodities on which a fee was 910
required and who is a creditor of the handler for all or a part 911
of the value of the commodities shall be based on the amount 912
stated on the obligation on the date of the sale. 913
(B) The agricultural commodity depositors fund shall be 915
liable to a depositor for any moneys that are not recovered 916
through other legal and equitable remedies as follows: 917
(1) For commodities stored with a licensed handler under a 919
bailment agreement for one hundred per cent of his THE 920
21
DEPOSITOR'S loss as determined under division (A)(1) of this 921
section;
(2) For commodities stored DEPOSITED with a licensed 923
handler under an agreement other than a bailment agreement for 925
one hundred per cent of the first ten thousand dollars of his THE 926
DEPOSITOR'S loss and eighty per cent of the remaining dollar 927
value of his THAT loss as determined under divisions (A)(1) and 928
(2) of this section. The aggregate amount recovered by a 930
depositor under all remedies shall not exceed one hundred per 931
cent of the value of his THE DEPOSITOR'S loss. If the moneys 932
recovered by a depositor under all remedies exceed one hundred 933
per cent of the value of his THE DEPOSITOR'S loss, the depositor 934
shall reimburse the fund in the amount that exceeds the value of
his THAT loss. 935
(C) The director, with the approval of the commodity 937
advisory commission, shall determine the validity of all claims 938
presented against the fund. A claim filed under this section for 939
losses on agricultural commodities other than commodities stored 940
under a bailment agreement shall not be valid unless the 941
depositor has made a demand for settlement of the obligation 942
within twelve months after the commodities are priced or 943
delivered for sale, whichever occurs later. Any depositor whose 944
claim has been refused by the director and the commission may 945
appeal the refusal to either TO the court of common pleas of 946
Franklin county or the court of common pleas of the county in 947
which the depositor resides. 948
The director shall provide for payment from the fund to any 950
depositor whose claim has been found to be valid. 951
(D) If at any time the fund does not contain sufficient 953
assets to pay valid claims, the director shall hold those claims 954
for payment until the fund again contains sufficient assets. 955
Claims against the fund shall be paid in the order in which they 956
are presented and found to be valid. 957
(E) If a depositor files an action for legal or equitable 959
22
remedies in a state or federal court having jurisdiction in those 960
matters that includes a claim against agricultural commodities 961
upon which the depositor may file a claim against the fund at a 962
later date, he THE DEPOSITOR ALSO shall also file with the 964
director a copy of the action filed with the court. 965
In the event of payment of a loss under this section, the 967
director shall be subrogated to the extent of the amount of any 968
payments to all rights, powers, privileges, and remedies of the 969
depositor against any person regarding the loss. 970
The depositor shall render all necessary assistance to aid 972
the director in securing the rights granted in this section. No 973
action or claim initiated by the depositor and pending at the 974
time of payment from the fund may be compromised or settled 975
without the consent of the director. 976
(F) If, prior to the effective date of this amendment JUNE 979
20, 1994, a lawsuit, adversary proceeding, or other legal 980
proceeding is brought against a depositor to recover money or
payments from funds to which a depositor has a right of 981
indemnification under this section, and the depositor retains 982
legal counsel resulting in a cost or expense to the depositor, 983
upon the rendering of a judgment or other resolution of the 984
lawsuit, adversary proceeding, or other legal proceeding, the 985
director, in his THE DIRECTOR'S discretion and with the approval 986
of the commodity advisory commission, may authorize
indemnification from the fund for attorney's fees paid by the 987
depositor. Any claim made by a depositor for the payment of 988
attorney's fees under this division shall be made in the same 989
manner as a claim under division (A) of this section. 990
Attorney's fees payable under this division shall be 992
limited to the actual hourly fee charged or one hundred dollars 993
per hour, whichever is less, and to a total maximum amount of 994
three hundred dollars.
Sec. 926.19. (A) There is hereby created in the state 1,003
treasury the commodity handler regulatory program fund. The 1,004
23
moneys in the fund shall be used to pay the examination and 1,005
administrative costs of this chapter and shall consist of: 1,006
(1) All revenues collected by the director of agriculture 1,008
from distribution of the receipt forms under division (B) of 1,009
section 926.20 of the Revised Code and such other forms and 1,010
registration books as the director may require by rule for the 1,011
administration of this chapter; 1,012
(2) The application and examination fees collected under 1,014
division (B) of section 926.05 of the Revised Code; 1,015
(3) The agricultural commodity tester certificate fees 1,017
collected under division (B) of section 926.30 of the Revised 1,018
Code; 1,019
(4) Interest income transferred from the agricultural 1,021
commodity depositors fund under section 926.16 of the Revised 1,022
Code; 1,023
(5) ALL FINES, PENALTIES, AND COSTS, EXCEPT COURT COSTS, 1,025
THAT ARE COLLECTED UNDER SECTION 926.99 OF THE REVISED CODE IN 1,026
CONSEQUENCE OF A VIOLATION OF THIS CHAPTER; 1,027
(6) ALL SUMS COLLECTED BY THE DIRECTOR OF AGRICULTURE 1,029
UNDER A CONTRACT DESCRIBED IN SECTION 926.36 OF THE REVISED CODE. 1,030
(B) The examination and administrative costs of this 1,032
chapter shall be computed by the director not later than the 1,033
thirty-first day of December of each even-numbered year to cover 1,034
the biennium that begins on the following first day of July. The 1,035
commodity advisory commission created in section 926.32 of the 1,036
Revised Code shall approve, and may amend, the examination and 1,037
administrative costs. The commission's decision shall be binding 1,038
on the director. The commission may also at any time MAY approve 1,040
for presentation to the controlling board a request to increase 1,041
or decrease the appropriation authority for the biennial 1,042
examination and administrative costs if it determines that an 1,043
increase or decrease in the cost is necessary to carry out the 1,044
purpose of this chapter. 1,045
(C) If at any time the moneys deposited in the fund, 1,047
24
including interest income transferred from the agricultural 1,048
commodity depositors fund under section 926.16 of the Revised 1,049
Code, are not sufficient to pay the examination and 1,050
administrative costs of this chapter, the director shall request 1,051
an appropriation from the general revenue fund to pay those 1,052
costs. 1,053
Sec. 926.29. (A) A delayed price agreement is an 1,062
executory contract which THAT shall be in such a form and contain 1,064
such terms as the director of agriculture shall adopt by rule 1,065
under Chapter 119. of the Revised Code. The agreement shall be 1,066
executed by and between the licensed handler and the depositor or 1,067
by their authorized representatives not later than fifteen days 1,068
after the first delivery of an agricultural commodity is received 1,069
for delayed pricing under the agreement. The handler shall 1,070
maintain a file of executed agreements that are available for 1,071
inspection at any reasonable time by the director or his THE 1,072
DIRECTOR'S designated representative. The handler ALSO shall 1,074
also keep records and ledgers the director considers necessary to 1,076
document the handler's obligation to the depositor under a 1,077
delayed price agreement. He THE HANDLER ALSO shall also provide 1,078
reports, forms, and other evidence the director shall adopt by 1,080
rule to document the storage and marketing of commodities under 1,081
the delayed price agreement.
(B) Except SUBJECT TO THE LIEN THAT ATTACHES UNDER SECTION 1,083
926.021 OF THE REVISED CODE AND EXCEPT as otherwise provided in 1,084
division (C) of this section, a licensed handler who purchases 1,085
any agricultural commodity under a delayed price agreement AT ALL 1,086
TIMES shall at all times maintain the commodity, rights in the 1,088
commodity, proceeds from the sale of the commodity, or a 1,089
combination of the commodity, rights, and proceeds equal to at 1,090
least ninety per cent of the value of his THE HANDLER'S 1,091
obligation for all commodities that he THE HANDLER has purchased 1,092
that are not priced under delayed price agreements. The 1,093
obligation shall be secured or represented by one or more of the 1,094
25
following: 1,095
(1) Maintenance of the commodity in storage in the 1,097
handler's warehouse; 1,098
(2) Rights in commodities as evidenced by a receipt or 1,100
ticket for storage of the commodities under a bailment agreement 1,101
in another warehouse approved by the director; 1,102
(3) Proceeds from the sale of commodities as evidenced or 1,104
represented by one or more of the following: 1,105
(a) Cash on hand or held on account in a state or 1,107
federally licensed financial institution or a lending agency of 1,108
the farm credit administration; 1,109
(b) Short-term investments held in time accounts with 1,111
state or federally licensed financial institutions or a lending 1,112
agency of the farm credit administration; 1,113
(c) Balances in commodity margin accounts; 1,115
(d) Commodities sold and shipped by the handler under 1,117
delayed price agreements that have not been priced less any 1,118
payments or advances that have been received by the handler; 1,119
(e) Such other evidence of unencumbered assets as may be 1,121
acceptable to the director, including an irrevocable letter of 1,122
credit. 1,123
(C) A IN ADDITION TO THE LIEN THAT ATTACHES UNDER SECTION 1,125
926.021 OF THE REVISED CODE, A depositor who sells an 1,126
agricultural commodity to a licensed handler under a delayed 1,127
price agreement may, upon giving notice to the handler either at 1,128
or prior to the time of delivery, MAY demand as security for 1,129
payment for the commodity an amount that, at the time of 1,130
delivery, is equal to one hundred per cent of the national loan 1,131
rate value of the commodity under the United States department of 1,132
agriculture price support program, or seventy-five per cent of 1,133
the average price being paid for the commodity in the state on 1,134
the date of demand as published by the market news service of the 1,135
department of agriculture, whichever is less. The handler shall 1,136
satisfy a demand for security on a commodity sold under a delayed 1,137
26
price agreement at the handler's option by one of the following: 1,138
(1) Payment to the depositor by cash or bank draft on the 1,140
account of the handler; 1,141
(2) Causing an irrevocable letter of credit to be issued 1,143
to the depositor by a bank designated by the handler securing 1,144
payment in the specified amount. The letter of credit shall be 1,145
subject to Chapter 1305. of the Revised Code and rules adopted by 1,146
the director pursuant to Chapter 119. of the Revised Code. 1,147
Sec. 926.30. (A) No licensed handler or employee of a 1,156
licensed handler who receives an agricultural commodity from a 1,157
producer, either for sale or for storage under a bailment 1,158
agreement, shall perform a quality test on the commodity for the 1,159
purpose of applying a premium, discount, or conditioning charge 1,160
unless the person making the test has completed a training course 1,161
or on-the-job training as an agricultural commodity tester PASSED 1,162
AN EXAMINATION ON THE SUBJECT THAT IS APPROVED BY THE DIRECTOR OF 1,163
AGRICULTURE. UPON APPLICATION BY A PERSON WHO HAS PASSED THE 1,164
EXAMINATION, THE DIRECTOR SHALL ISSUE TO THE PERSON AN 1,165
AGRICULTURAL COMMODITY TESTER CERTIFICATE THAT SHALL BE VALID FOR 1,166
A PERIOD OF THREE YEARS. EXCEPT AS OTHERWISE PROVIDED IN THIS 1,167
DIVISION, AN AGRICULTURAL COMMODITY TESTER SHALL PASS AN 1,168
EXAMINATION ON AGRICULTURAL COMMODITY TESTING APPROVED BY THE
DIRECTOR PRIOR TO EACH RENEWAL OF A CERTIFICATE. THE DIRECTOR 1,169
MAY EXEMPT FROM THE EXAMINATION REQUIREMENT FOR CERTIFICATE 1,170
RENEWAL AN AGRICULTURAL COMMODITY TESTER WHO, DURING THE YEAR 1,171
PRIOR TO EXPIRATION OF THE CERTIFICATE, SUCCESSFULLY COMPLETES 1,172
TRAINING ON AGRICULTURAL COMMODITY TESTING THAT HAS BEEN APPROVED 1,173
BY THE DIRECTOR. The director of agriculture shall establish by 1,174
rule the curriculum for the training course or on-the-job 1,175
STANDARDS THAT SUCH training that shall MUST MEET IN ORDER TO BE 1,177
APPROVED BY THE DIRECTOR. THE RULES SHALL REQUIRE THE TRAINING 1,178
TO include instructions in the use of the official grain 1,179
standards of the United States as a basis for determining the 1,180
quality of the commodities tested by an agricultural commodity 1,181
27
tester. AN AGRICULTURAL COMMODITY TESTER CERTIFICATE ISSUED 1,182
PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT SHALL BE CONSIDERED 1,183
TO BE VALID UNTIL THE DATE ON WHICH, AT THE TIME OF ISSUANCE, IT 1,184
WAS SCHEDULED TO EXPIRE. UPON EXPIRATION OF THE CERTIFICATE, THE 1,185
EXAMINATION REQUIREMENT FOR RENEWAL SHALL APPLY.
(B) Upon successful completion of the training required 1,187
under division (A) of this section and upon application by the 1,188
trainee, the director shall issue to an agricultural commodity 1,189
tester a certificate that shall be valid for a period of two 1,190
years. The director may determine that retraining or review is 1,191
necessary for the tester as a result of changes in or amendments 1,192
to the official grain standards of the United States, or if the 1,193
director has reason to believe that retraining is necessary as a 1,194
result of complaints relating to the tester's inability to 1,195
accurately test commodities according to the official grain 1,196
standards. A fee to cover the cost of issuing certificates and 1,197
administering the educational program shall be established by 1,198
rule of the director adopted under Chapter 119. of the Revised 1,199
Code and shall be deposited into the commodity handler regulatory 1,200
program fund created in section 926.19 of the Revised Code. 1,201
(C) The director may suspend or revoke the certificate of 1,203
an agricultural commodity tester in accordance with Chapter 119. 1,204
of the Revised Code for failure or inability of the tester to 1,205
apply the official grain standards of the United States in 1,206
testing the quality of an agricultural commodity. 1,207
Sec. 926.32. (A) There is hereby created the commodity 1,216
advisory commission consisting of seven members to be appointed 1,217
by the director of agriculture. Not later than January 1, 1983, 1,218
the director shall make appointments to the commission. Of the 1,219
initial appointments, three shall be for terms ending January 1, 1,220
1984, two shall be for terms ending January 1, 1985, and two 1,221
shall be for terms ending January 1, 1986. Thereafter, terms of 1,222
office shall be for three years, each term ending on the same day 1,223
of the same month of the year as did the term that it succeeds. 1,224
28
Each member shall hold office from the date of his appointment 1,225
until the end of the term for which he THE MEMBER was appointed. 1,226
Any member appointed to fill a vacancy occurring prior to the 1,228
expiration of the term for which his THE MEMBER'S predecessor was 1,229
appointed shall hold office for the remainder of the term. Any 1,231
member shall continue in office subsequent to the expiration date 1,232
of his THE MEMBER'S term until his THE MEMBER'S successor takes 1,234
office or until a period of sixty days has elapsed, whichever 1,235
occurs first.
(B) The commission shall at all times be composed of three 1,237
farmers who are primarily engaged PRIMARILY in the production of 1,238
agricultural commodities, one licensed handler who is the manager 1,239
of a farmers cooperative, one licensed handler who is the owner 1,240
and operator of a warehouse located in a rural area, one licensed 1,241
handler representing a warehouse located at a major agricultural 1,242
commodity transportation center, and one banker who is an officer 1,243
of a rural bank. The director shall annually designate ANNUALLY 1,244
one member of the commission to serve as its chairman CHAIRPERSON 1,246
and may, after notice and public hearing, MAY remove any member 1,248
only for neglect of duty or malfeasance in office. 1,249
(C) A vacancy on the commission shall not impair the right 1,251
of the other members to exercise all of the commission's powers. 1,252
Two farmer members and two handler members shall constitute a 1,253
quorum for the conduct of business of the commission. 1,254
(D) The commission shall meet in Columbus at least three 1,256
times annually at times that the commission shall set by rule and 1,257
may meet at other times that the chairman CHAIRPERSON or a 1,258
majority of the commission members considers appropriate; 1,260
provided, that no meeting shall be held on the call of the 1,261
chairman CHAIRPERSON unless at least seven days' written notice 1,263
is first given to all members of the commission. 1,264
(E) Each member shall be reimbursed for his THE MEMBER'S 1,266
actual and necessary expenses incurred in the discharge of his 1,268
duties as a commission member. 1,269
29
(F) The commission may adopt, amend, or rescind rules or 1,271
procedures governing the conduct of its internal affairs. 1,272
(G) The commission may request from the director, and the 1,274
director shall provide, meeting space, assistance, services, and 1,275
data to enable it to carry out its functions. 1,276
(H) All costs of the commission, including all of the 1,278
expenses of its members and consultants authorized in this 1,279
section, shall be paid from the commodity handler regulatory 1,280
program fund created in section 926.19 of the Revised Code 1,281
pursuant to itemized vouchers approved by the chairman 1,282
CHAIRPERSON of the commission and the director. 1,284
(I) The director shall designate an official or employee 1,286
of the department of agriculture to act as the executive 1,287
secretary of the commission. The director ALSO may also request 1,288
the attendance at meetings of the commission consultants with 1,290
expertise in agricultural law, marketing, statistics, or any 1,291
other subject to advise and consult with the commission on 1,292
matters on the agenda of any regular or special meeting of the 1,293
commission. The expenses incurred by consultants attending those 1,294
meetings shall be reimbursed according to division (H) of this 1,295
section. The executive secretary shall keep or cause to be kept 1,296
a permanent journal of all meetings, proceedings, findings, 1,297
determinations, and recommendations of the commission, including 1,298
an itemized statement of the expenses allowed to each member of 1,299
the commission and consultants under this section. The journal 1,300
shall be a public record. 1,301
(J) In addition to the authority granted in division (F) 1,303
of section 926.05, division (B) of section 926.17, divisions (A) 1,304
and (C) of section 926.18, and division (B) of section 926.19 of 1,305
the Revised Code, the commission shall advise and counsel the 1,306
director on all matters relating to: 1,307
(1) The administration of this chapter; 1,309
(2) The development of rules authorized by section 926.02 1,311
of the Revised Code; 1,312
30
(3) Any other matters that the commission and the director 1,314
consider appropriate in carrying out this chapter. 1,315
Sec. 926.36. THE DIRECTOR OF AGRICULTURE MAY ENTER INTO A 1,317
CONTRACT WITH A MARKETING ASSOCIATION THAT IS INVOLVED IN A 1,318
PROGRAM DESIGNED TO IMPROVE OR EXPAND THE MARKET FOR AN 1,319
AGRICULTURAL COMMODITY AND FUNDED BY AN ASSESSMENT THAT IS LEVIED 1,321
ON PRODUCERS OF THE AGRICULTURAL COMMODITY AND CALCULATED ON THE 1,322
BASIS OF THE VOLUME OF AGRICULTURAL COMMODITIES PRODUCED BY THE
PRODUCER. UNDER THE CONTRACT, THE MARKETING ASSOCIATION MAY 1,323
AGREE TO PAY THE DIRECTOR A MUTUALLY ACCEPTABLE SUM AND IN 1,324
EXCHANGE THE DIRECTOR MAY AGREE TO FURNISH THE MARKETING 1,325
ASSOCIATION WITH INFORMATION THAT THE DIRECTOR OBTAINS UNDER 1,326
SECTION 926.11 OF THE REVISED CODE REGARDING THE VOLUME OF 1,328
COMMODITIES PRODUCED BY PRODUCERS WHO PARTICIPATE IN THE 1,329
MARKETING PROGRAM, AND RELATED FINANCIAL INFORMATION. 1,330
THE MARKETING ASSOCIATION MAY USE THE INFORMATION TO 1,332
DETERMINE WHETHER A PRODUCER HAS TRUTHFULLY DISCLOSED THE VOLUME 1,333
OF AGRICULTURAL COMMODITIES PRODUCED BY THE PRODUCER AND WHETHER 1,334
THE MARKETING ASSOCIATION HAS RECEIVED THE CORRECT AMOUNT IN 1,335
ASSESSMENTS. 1,336
ANY SUM PAID TO THE DIRECTOR UNDER A CONTRACT ENTERED INTO 1,338
UNDER THIS SECTION SHALL BE DEPOSITED IN THE COMMODITY HANDLER 1,339
REGULATORY PROGRAM FUND CREATED IN SECTION 926.19 OF THE REVISED 1,341
CODE. 1,342
Sec. 926.99. (A) Whoever (1) EXCEPT AS PROVIDED IN 1,351
DIVISION (A)(2) OF THIS SECTION, WHOEVER violates section 926.04 1,352
of the Revised Code is guilty of a minor misdemeanor OF THE FIRST 1,354
DEGREE ON A FIRST OFFENSE AND A FELONY OF THE FIFTH DEGREE ON 1,355
EACH SUBSEQUENT OFFENSE.
(2) A PERSON WHO VIOLATES SECTION 926.04 OF THE REVISED 1,360
CODE AND WHO IS INSOLVENT AND FINANCIALLY UNABLE TO SATISFY A 1,361
CLAIMANT AS DEFINED IN SECTION 926.021 OF THE REVISED CODE IS 1,363
GUILTY OF A FELONY OF THE FIFTH DEGREE IF THE FINANCIAL 1,364
OBLIGATION OWED BY THE OFFENDER TO THE CLAIMANT IS FIVE HUNDRED 1,365
31
DOLLARS OR MORE AND IS LESS THAN FIVE THOUSAND DOLLARS. IF THE 1,366
FINANCIAL OBLIGATION IS FIVE THOUSAND DOLLARS OR MORE AND IS LESS 1,367
THAN ONE HUNDRED THOUSAND DOLLARS, THE OFFENDER IS GUILTY OF A 1,368
FELONY OF THE FOURTH DEGREE. IF THE FINANCIAL OBLIGATION IS ONE 1,369
HUNDRED THOUSAND DOLLARS OR MORE, THE OFFENDER IS GUILTY OF A 1,370
FELONY OF THE THIRD DEGREE. 1,371
(B) Whoever violates division (E) or (F) of section 926.20 1,373
or division (A) of section 926.22 of the Revised Code is guilty 1,374
of a minor misdemeanor on a first offense and a misdemeanor of 1,375
the second degree on each subsequent offense. 1,376
(C) Whoever violates division (G) of section 926.20 or 1,378
section 926.34 or 926.35 of the Revised Code is guilty of a 1,379
felony of the fourth degree. 1,380
(D) Whoever violates division (A) of section 926.28, or 1,384
division (B) of section 926.29, of the Revised Code is guilty of 1,385
a felony of the fifth degree. 1,386
(E) Whoever violates section 926.31 of the Revised Code is 1,388
guilty of a misdemeanor of the fourth degree. 1,389
Sec. 4513.32. When one vehicle is towing another vehicle, 1,398
the drawbar or other connection shall be of sufficient strength 1,399
to pull all the weight towed thereby, and the drawbar or other 1,400
connection shall not exceed fifteen feet from one vehicle to the 1,401
other, except the connection between any two vehicles 1,402
transporting poles, pipe, machinery, or other objects of 1,403
structural nature which cannot readily be dismembered. 1,404
When one vehicle is towing another and the connection 1,406
consists only of a chain, rope, or cable, there shall be 1,407
displayed upon such connection a white flag or cloth not less 1,408
than twelve inches square. 1,409
In addition to such drawbar or other connection, each 1,411
trailer and each semitrailer which is not connected to a 1,412
commercial tractor by means of a fifth wheel shall be coupled 1,413
with stay chains or cables to the vehicle by which it is being 1,414
drawn. The chains or cables shall be of sufficient size and 1,415
32
strength to prevent the towed vehicle's parting from the drawing 1,416
vehicle in case the drawbar or other connection should break or 1,417
become disengaged. In case of a loaded pole trailer, the 1,418
connecting pole to the drawing vehicle shall be coupled to the 1,419
drawing vehicle with stay chains or cables of sufficient size and 1,420
strength to prevent the towed vehicle's parting from the drawing 1,421
vehicle. 1,422
Every trailer or semitrailer, except pole and cable 1,424
trailers and pole and cable dollies operated by a public utility 1,425
as defined in section 5727.01 of the Revised Code, shall be 1,426
equipped with a coupling device, which shall be so designed and 1,427
constructed that the trailer will follow substantially in the 1,428
path of the vehicle drawing it, without whipping or swerving from 1,429
side to side. Vehicles used to transport agricultural produce or 1,430
agricultural production materials between a local place of 1,431
storage and supply and the farm, when drawn or towed on a street 1,432
or highway at a speed of twenty-five miles per hour or less, and 1,433
vehicles designed and used exclusively to transport a boat 1,434
between a place of storage and a marina, or in and around a 1,435
marina, when drawn or towed on a street or highway for a distance 1,436
of no more than ten miles and at a speed of twenty-five miles per 1,437
hour or less, shall have a drawbar or other connection, including 1,438
the hitch mounted on the towing vehicle, which shall be of 1,439
sufficient strength to pull all the weight towed thereby. Only 1,440
one such vehicle used to transport agricultural produce or 1,441
agricultural production materials as provided in this section may 1,442
be towed or drawn at one time unless the towing vehicle is an 1,443
agricultural tractor, EXCEPT AS FOLLOWS: 1,444
(A) AN AGRICULTURAL TRACTOR MAY TOW OR DRAW MORE THAN ONE 1,447
SUCH VEHICLE;
(B) A PICKUP TRUCK OR STRAIGHT TRUCK DESIGNED BY THE 1,450
MANUFACTURER TO CARRY A LOAD OF NOT LESS THAN ONE-HALF TON AND 1,451
NOT MORE THAN TWO TONS MAY TOW OR DRAW NOT MORE THAN TWO SUCH 1,452
VEHICLES THAT ARE BEING USED TO TRANSPORT AGRICULTURAL PRODUCE 1,453
33
FROM THE FARM TO A LOCAL PLACE OF STORAGE. NO VEHICLE BEING SO 1,454
TOWED BY SUCH A PICKUP TRUCK OR STRAIGHT TRUCK SHALL BE 1,455
CONSIDERED TO BE A MOTOR VEHICLE.
Sec. 5577.042. (A) AS USED IN THIS SECTION: 1,457
(1) "FARM MACHINERY" HAS THE SAME MEANING AS IN SECTION 1,459
4501.01 OF THE REVISED CODE. 1,461
(2) "FARM COMMODITIES" INCLUDES LIVESTOCK, BULK MILK, 1,464
CORN, SOYBEANS, TOBACCO, AND WHEAT.
(3) "FARM TRUCK" MEANS A TRUCK USED IN THE TRANSPORTATION 1,466
FROM A FARM OF FARM COMMODITIES WHEN THE TRUCK IS OPERATED IN 1,467
ACCORDANCE WITH THIS SECTION. 1,468
(4) "LOG TRUCK" MEANS A TRUCK USED IN THE TRANSPORTATION 1,470
OF TIMBER FROM THE SITE OF ITS CUTTING WHEN THE TRUCK IS OPERATED 1,471
IN ACCORDANCE WITH THIS SECTION. 1,472
(B) NOTWITHSTANDING SECTIONS 5577.02 AND 5577.04 OF THE 1,476
REVISED CODE, A FARM TRUCK OR FARM MACHINERY TRANSPORTING FARM 1,477
COMMODITIES, OR A LOG TRUCK TRANSPORTING TIMBER, FROM THE PLACE 1,479
OF PRODUCTION TO THE FIRST POINT OF DELIVERY WHERE THE
COMMODITIES ARE WEIGHED AND TITLE TO THE COMMODITIES OR TIMBER IS 1,481
TRANSFERRED, MAY EXCEED BY NO MORE THAN FIVE PER CENT THE WEIGHT 1,482
PROVISIONS OF SECTIONS 5577.01 TO 5577.09 OF THE REVISED CODE AND 1,484
NO PENALTY PRESCRIBED IN SECTION 5577.99 OF THE REVISED CODE 1,485
SHALL BE IMPOSED. IF A FARM TRUCK OR FARM MACHINERY SO 1,486
TRANSPORTING FARM COMMODITIES, OR A TIMBER TRUCK SO TRANSPORTING
TIMBER, EXCEEDS BY MORE THAN FIVE PER CENT THE WEIGHT PROVISIONS 1,487
OF THOSE SECTIONS, BOTH OF THE FOLLOWING APPLY WITHOUT REGARD TO 1,488
THE FIVE PER CENT ALLOWANCE PROVIDED BY THIS DIVISION: 1,490
(1) THE APPLICABLE PENALTY PRESCRIBED IN SECTION 5577.99 1,492
OF THE REVISED CODE;
(2) THE CIVIL LIABILITY IMPOSED BY SECTION 5577.12 OF THE 1,494
REVISED CODE.
(C)(1) DIVISION (B) OF THIS SECTION DOES NOT APPLY TO THE 1,497
OPERATION OF A FARM TRUCK, LOG TRUCK, OR FARM MACHINERY
TRANSPORTING FARM COMMODITIES DURING THE MONTHS OF FEBRUARY AND 1,499
34
MARCH.
(2) REGARDLESS OF WHEN THE OPERATION OCCURS, DIVISION (B) 1,501
OF THIS SECTION DOES NOT APPLY TO THE OPERATION OF A FARM TRUCK, 1,502
LOG TRUCK, OR FARM MACHINERY TRANSPORTING FARM COMMODITIES ON 1,503
EITHER OF THE FOLLOWING: 1,504
(a) A HIGHWAY THAT IS PART OF THE INTERSTATE SYSTEM; 1,506
(b) A HIGHWAY, ROAD, OR BRIDGE THAT IS SUBJECT TO REDUCED 1,508
MAXIMUM WEIGHTS UNDER SECTION 4513.33, 5577.07, 5577.071, 1,509
5577.08, 5577.09, OR 5591.42 OF THE REVISED CODE. 1,511
Section 2. That existing sections 926.01, 926.021, 926.05, 1,513
926.06, 926.10, 926.16, 926.18, 926.19, 926.29, 926.30, 926.32, 1,514
926.99, and 4513.32 of the Revised Code are hereby repealed. 1,515