2005 Minnesota Statutes

CHAPTER 232. Grain storage act

    232.01 Subdivision 1. Repealed, 1982 c 635 s 9 

    Subd. 2. Repealed, 1982 c 635 s 9 

    Subd. 3. Repealed, 1951 c 110 s 1; 1982 c 635 s 9 

  232.02 Repealed, 1982 c 635 s 9 

  232.03 Repealed, 1982 c 635 s 9 

  232.04 Repealed, 1982 c 635 s 9 

  232.05 Repealed, 1974 c 548 s 32 

    232.06 Subdivision 1.  Repealed, 1982 c 508 s 12 

    Subd. 2.  Repealed, 1982 c 508 s 12 

    Subd. 3.  Repealed, 1982 c 508 s 12 

    Subd. 4.  Repealed, 1982 c 508 s 12 

    Subd. 5.  Repealed, 1982 c 635 s 9 

    Subd. 6.  Repealed, 1982 c 508 s 12 

    Subd. 7.  Repealed, 1982 c 508 s 12 

  232.07 Repealed, 1982 c 508 s 12 

  232.08 Repealed, 1982 c 508 s 12 

  232.09 Repealed, 1982 c 508 s 12 

  232.10 Repealed, 1982 c 508 s 12 

  232.11 Repealed, 1982 c 508 s 12 

  232.12 Repealed, 1982 c 508 s 12 

  232.13 Repealed, 1982 c 508 s 12 

  232.14 Repealed, 1982 c 508 s 12 

  232.15 Repealed, 1982 c 508 s 12 

  232.16 Repealed, 1982 c 508 s 12 

  232.17 Repealed, 1982 c 508 s 12 

  232.18 Repealed, 1982 c 508 s 12 

  232.19 Repealed, 1982 c 508 s 12 

     232.20 Grain Storage Act; citation. 

    Sections 232.20 to 232.25 may be cited as the Grain Storage 
 Act.  

    HIST: 1982 c 508 s 1 

     232.21 Definitions. 

    Subdivision 1.    Applicability.  For the purpose of 
 sections 232.20 to 232.25, the terms defined in this section 
 have the meanings given them.  

    Subd. 2.    Bond.  "Bond" means an acceptable 
 obligation, running to the state as obligee, for the purpose of 
 indemnifying depositors and producers of grain against breach of 
 contract by a public grain warehouse or grain bank operator.  

    Subd. 3.    Commissioner.  "Commissioner" means the 
 commissioner of agriculture.  

    Subd. 4.    Condition one bond.  "Condition one bond" 
 means a bond for a public grain warehouse operator when grain 
 belonging to persons other than the warehouse operator is 
 accepted for storage.  

    Subd. 5.  Repealed, 1982 c 508 s 12 

    Subd. 6.    Depositor.  "Depositor" means a person who 
 is the owner or legal holder of an outstanding grain warehouse 
 receipt, grain bank receipt or open scale ticket marked for 
 storage on which a receipt is to be issued, representing any 
 grain stored in a public grain warehouse or grain bank.  

    Subd. 6a.    Electronic document.  "Electronic document" 
 means a document that is generated, sent, received, or stored by 
 electronic, optical, or similar means, including electronic data 
 interchange, electronic mail, telegram, telex, or telecopy.  
 "Electronic document" includes, but is not limited to, warehouse 
 receipts, grain purchase contracts, and voluntary extension of 
 credit contracts. 

    Subd. 6b.    Electronic grain warehouse receipt.  
 "Electronic grain warehouse receipt" means an electronic version 
 of a grain warehouse receipt issued or transmitted to a 
 depositor by a grain warehouse operator under the provisions of 
 section 232.23 in the form of an electronic document.  An 
 electronic grain warehouse receipt is a negotiable instrument 
 except as provided in section 232.23, subdivision 11. 

    Subd. 6c.    Electronic signature.  "Electronic 
 signature" means an electronic sound, symbol, or process 
 attached to or logically associated with a record and executed 
 or adopted by a person with the intent to sign the record. 

    Subd. 7.    Grain.  "Grain" means any cereal grain, 
 coarse grain, or oilseed in unprocessed form for which a 
 standard has been established by the United States Secretary of 
 Agriculture or the Minnesota Board of Grain Standards, dry 
 edible beans, or agricultural crops designated by the 
 commissioner by rule.  

    Subd. 8.    Grain warehouse.  "Grain warehouse" means an 
 elevator, flour, cereal or feed mill, malthouse or warehouse in 
 which grain belonging to a person other than the grain warehouse 
 operator is received for purchase or storage.  

    Subd. 9.    Grain warehouse receipt.  "Grain warehouse 
 receipt" means a formal record issued to a depositor by a grain 
 warehouse operator under the provisions of section 232.23.  A 
 grain warehouse receipt is a negotiable instrument except as 
 provided in section 232.23, subdivision 11.  

    Subd. 10.    Person.  "Person" means a corporation, 
 company, joint stock company or association, partnership, firm 
 or individual, including their agents, trustees, assignees or 
 duly appointed receivers.  

    Subd. 11.    Producer.  "Producer" means a person who 
 owns or manages a grain producing or growing operation and holds 
 or shares the responsibility for marketing that grain produced.  

    Subd. 12.    Public grain warehouse operator.  "Public 
 grain warehouse operator" means a person licensed to operate a 
 grain warehouse in which grain belonging to persons other than 
 the grain warehouse operator is accepted for storage or 
 purchase, or who offers grain storage or grain warehouse 
 facilities to the public for hire.  

    Subd. 13.    Scale ticket.  "Scale ticket" means a 
 memorandum showing the weight, grade and kind of grain which is 
 issued by a grain warehouse operator to a depositor at the time 
 the grain is delivered.  

    Subd. 14.    Open storage.  "Open storage" means grain 
 or agricultural products received by a warehouse operator from a 
 depositor for which warehouse receipts have not been issued or a 
 purchase made and the records documented accordingly. 

    HIST: 1982 c 508 s 2; 1988 c 688 art 14 s 2; 1990 c 426 art 1 
 s 27; 2000 c 477 s 63; 2004 c 254 s 32-34 

     232.22 Licenses, bonding claims, disbursements. 

    Subdivision 1.    Licenses.  An application for a public 
 grain warehouse operator's license must be filed with the 
 commissioner and the license issued before the purchase or 
 storage of grain may be commenced.  All grain warehouses located 
 within the same home rule charter or statutory city or town and 
 owned and operated by the same person may be covered by a single 
 license.  

    Subd. 2.    Renewal.  A license must be renewed annually.
 If a business receives more than one license from the 
 commissioner, the licenses shall be issued at the same time, but 
 only after all conditions for each license are met.  The 
 licenses may be combined into one joint license.  

    Subd. 3.    Fees; grain buyers and storage account.  
 There is created in the agricultural fund an account known as 
 the grain buyers and storage account.  The commissioner shall 
 set the fees for inspections, certifications and licenses under 
 sections 232.20 to 232.25 at levels necessary to pay the costs 
 of administering and enforcing sections 232.20 to 232.25.  All 
 money collected pursuant to sections 232.20 to 232.25 and 
 chapters 233 and 236 shall be paid by the commissioner into the 
 state treasury and credited to the grain buyers and storage 
 account and is appropriated to the commissioner for the 
 administration and enforcement of sections 232.20 to 232.25 and 
 chapters 233 and 236.  All money collected pursuant to chapter 
 231 shall be paid by the commissioner into the grain buyers and 
 storage account and is appropriated to the commissioner for the 
 administration and enforcement of chapter 231.  

    The fees for a license to store grain are as follows: 

    (a) For a license to store grain, $110 for each home rule 
 charter or statutory city or town in which a public grain 
 warehouse is operated. 

    (b) A person with a license to store grain in a public 
 grain warehouse is subject to an examination fee for each 
 licensed location, based on the following schedule for one 
 examination: 

      Bushel Capacity            Examination Fee 
      Less than 150,001                  $300
      150,001 to 250,000                 $425
      250,001 to 500,000                 $545
      500,001 to 750,000                 $700
      750,001 to 1,000,000               $865
      1,000,001 to 1,200,000             $1,040
      1,200,001 to 1,500,000             $1,205
      1,500,001 to 2,000,000             $1,380
      More than 2,000,000                $1,555

    (c) The fee for the second examination is $55 per hour per 
 examiner for warehouse operators who choose to have it performed 
 by the commissioner. 

    (d) A penalty amount not to exceed ten percent of the fees 
 due may be imposed by the commissioner for each month for which 
 the fees are delinquent. 

    Subd. 4.    Bonding.  Before a license is issued, the 
 applicant for a public grain warehouse operator's license shall 
 file with the commissioner a bond in a penal sum prescribed by 
 the commissioner.  The penal sum on a condition one bond shall 
 be established by rule by the commissioner pursuant to the 
 requirements of chapter 14 for all grain outstanding on grain 
 warehouse receipts.  The penal sum on a condition two bond shall 
 not be less than $10,000 for each location up to a maximum of 
 five locations.  

    Subd. 5.    Statement of grain in storage; reports.  (a) 
 All public grain warehouse operators must by the tenth day of 
 each month file with the commissioner on forms approved by the 
 commissioner a report showing the net liability of all grain 
 outstanding on grain warehouse receipts as of the close of 
 business on the last day of the preceding month.  This report 
 shall be used for the purpose of establishing the penal sum of 
 the bond.  

    (b) If any public grain warehouse operator willfully 
 neglects or refuses to file the report required in clause (a) 
 for two consecutive months, the commissioner may immediately 
 suspend the person's license and the licensee must surrender the 
 license to the commissioner.  Within 15 days the licensee may 
 request an administrative hearing subject to chapter 14 to 
 determine if the license should be revoked.  If no request is 
 made within 15 days the commissioner shall revoke the license.  

    (c) Every public grain warehouse operator shall keep in a 
 place of safety complete and accurate records and accounts 
 relating to any grain warehouse operated.  The records shall 
 reflect each commodity received and shipped daily, the balance 
 remaining in the grain warehouse at the close of each business 
 day, a listing of all unissued grain warehouse receipts in the 
 operator's possession, a record of all grain warehouse receipts 
 issued which remain outstanding and a record of all grain 
 warehouse receipts which have been returned for cancellation.  
 Copies of grain warehouse receipts or other documents evidencing 
 ownership of grain by a depositor, or other liability of the 
 grain warehouse operator, shall be retained as long as the 
 liability exists but must be kept for a minimum of three years.  

    (d) Every public grain warehouse operator must maintain in 
 the grain warehouse at all times grain of proper grade and 
 sufficient quantity to meet delivery obligations on all 
 outstanding grain warehouse receipts.  

    Subd. 6.    Bond claims.  A person claiming to be 
 damaged by a breach of the conditions of a bond of a licensed 
 public grain warehouse operator may file a written claim with 
 the commissioner stating the facts constituting the claim.  The 
 claim must be filed with the commissioner within 180 days of the 
 breach of the conditions of the bond.  If the commissioner has 
 reason to believe that a claim is valid, the commissioner may 
 immediately suspend the license of the public grain warehouse 
 operator and the licensee must surrender the license to the 
 commissioner.  Within 15 days the licensee may request an 
 administrative hearing subject to chapter 14 to determine 
 whether the license should be revoked.  If no request is made 
 within 15 days the commissioner shall revoke the license.  

    Subd. 7.    Bond disbursement.  (a) The condition one 
 bond of a public grain warehouse operator must be conditioned 
 that the public grain warehouse operator issuing a grain 
 warehouse receipt is liable to the depositor for the delivery of 
 the kind, grade and net quantity of grain called for by the 
 receipt.  

    (b) The condition two bond shall provide for payment of 
 loss caused by the grain buyer's failure to pay, upon the 
 owner's demand, the purchase price of grain sold to the grain 
 buyer.  The bond shall be conditioned upon the grain buyer being 
 duly licensed as provided herein.  The bond shall not cover any 
 transaction which constitutes a voluntary extension of credit.  

    (c) Upon notification of default, the commissioner shall 
 determine the validity of all claims and notify all parties 
 having filed claims.  Any aggrieved party may appeal the 
 commissioner's determination by requesting, within 15 days, that 
 the commissioner initiate a contested case proceeding.  In the 
 absence of such a request, or following the issuance of a final 
 order in a contested case, the surety company shall issue 
 payment to those claimants entitled to payment.  If the 
 commissioner determines it is necessary, the commissioner may 
 apply to the district court for an order appointing a trustee or 
 receiver to manage and supervise the operations of the grain 
 warehouse operator in default.  The commissioner may participate 
 in any resulting court proceeding as an interested party.  

    (d) For the purpose of determining the amount of bond 
 disbursement against all valid claims under a condition one 
 bond, all grain owned or stored in the public grain warehouse 
 shall be sold and the combined proceeds deposited in a special 
 fund.  Payment shall be made from the special fund satisfying 
 the valid claims of grain warehouse receipt holders.  

    (e) If a public grain warehouse operator has become liable 
 to more than one depositor or producer by reason of breaches of 
 the conditions of the bond and the amount of the bond is 
 insufficient to pay, beyond the proceeds of the special fund, 
 the entire liability to all valid claimants, the proceeds of the 
 bond and special fund shall be apportioned among the valid 
 claimants on a pro rata basis.  

    (f) A bond is not cumulative from one licensing period to 
 the next.  The maximum liability of the bond shall be its face 
 value for the licensing period.  

    HIST: 1982 c 424 s 130; 1982 c 508 s 3; 1983 c 300 s 27; 1983 
 c 374 s 16,17,20; 1999 c 231 s 171; 1Sp2005 c 1 art 1 s 87 

     232.23 Duties of public grain warehouse operator. 

    Subdivision 1.    Discrimination prohibited.  (a) Except 
 as provided in paragraph (b), a public grain warehouse operator 
 must receive for storage, so far as the capacity of the grain 
 warehouse will permit, all sound grain tendered in warehouseable 
 condition without discrimination against any person tendering 
 the grain. 

    (b) The requirements in paragraph (a) do not apply to 
 storage capacity owned by producers that is managed by the 
 public grain warehouse operator but is not under the same 
 ownership as the grain warehouse. 

    Subd. 2.    Scale tickets.  A public or private grain 
 warehouse operator, upon receiving grain, shall issue a scale 
 ticket for each load of grain received.  Scale tickets shall 
 contain the name, location and the date of each transaction and 
 be consecutively numbered.  A duplicate copy of each scale 
 ticket shall remain in the possession of the public or private 
 grain warehouse operator as a permanent record.  The original 
 scale ticket shall be delivered to the depositor upon receipt of 
 each load of grain.  Each scale ticket shall have printed across 
 its face "This is a memorandum, nonnegotiable, possession of 
 which does not signify that settlement has or has not been 
 consummated."  The scale ticket shall state specifically whether 
 the grain is received on contract, for storage, for shipment or 
 consignment or sold.  If the grain is received on contract or 
 sold, the price shall be indicated on the scale ticket.  All 
 scale tickets shall be dated and signed by the public or private 
 grain warehouse operator or the operator's agent or manager.  

    Subd. 3.    Grain delivered considered stored.  All 
 grain delivered to a public grain warehouse operator shall be 
 considered stored at the time of delivery, unless arrangements 
 have been made with the public grain warehouse operator prior to 
 or at the time of delivery to apply the grain on contract, for 
 shipment or consignment or for cash sale.  Grain may be held in 
 open storage or placed on a warehouse receipt.  Warehouse 
 receipts must be issued for all grain held in open storage 
 within six months of delivery to the warehouse unless the 
 depositor has signed a statement that the depositor does not 
 desire a warehouse receipt.  The warehouse operator's tariff 
 applies for any grain that is retained in open storage or under 
 warehouse receipt.  

    Subd. 4.    Form of grain warehouse receipt.  (a) A 
 grain warehouse receipt must be in duplicate, contain the name 
 and location of the grain warehouse, and be delivered to the 
 depositor or the depositor's agent.  Grain warehouse receipts 
 shall be consecutively numbered as prescribed by the 
 commissioner and state the date of deposit, except where the 
 deposit of a certain lot for storage is not completed in one 
 day.  In that case, the grain warehouse receipt, when issued, 
 shall be dated not later than Saturday of the week of delivery.  

    (b) A grain warehouse receipt shall contain either on its 
 face or reverse side the following specific grain warehouse and 
 storage contract:  "This grain is received, insured and stored 
 through the date of expiration of the annual licenses of this 
 grain warehouse and terms expressed in the body of this grain 
 warehouse receipt shall constitute due notice to its holder of 
 the expiration of the storage period.  It is unlawful for a 
 public grain warehouse operator to charge or collect a greater 
 or lesser amount than the amount filed with the commissioner.  
 All charges shall be collected by the grain warehouse operator 
 upon the owner's presentation of the grain warehouse receipt for 
 the sale or delivery of the grain represented by the receipt, or 
 the termination of the storage period.  Upon the presentation of 
 this grain warehouse receipt and payment of all charges accrued 
 up to the time of presentation, the above amount, kind and grade 
 of grain will be delivered within the time prescribed by law to 
 the depositor or the depositor's order."  

    (c) A grain warehouse receipt shall also have printed on it 
 the following:  

                      "Redemption of Receipt 

    Received from .............., the sum of $........ or 
 ........  bushels in full satisfaction of the obligation 
 represented by this grain warehouse receipt.  

    Gross price per bushel $.......  

    Storage per bushel $.......  

    Net price per bushel $.......  

    All blank spaces in this grain warehouse receipt were 
 filled in before I signed it and I certify that I am the owner 
 of the commodity for which this grain warehouse receipt was 
 issued and that there are no liens, chattel mortgages or other 
 claims against the commodity represented by this grain warehouse 
 receipt.  

                                Signed ............ 
 Accepted ..................    Dated  ............
         Warehouse operator

    This redemption shall be signed by the depositor or the 
 depositor's agent in the event that the grain represented is 
 redelivered or purchased by the public grain warehouse 
 operator.  Signature of this redemption by the depositor 
 constitutes a valid cancellation of the obligation embraced in 
 the storage contract."  

    (d) A warehouse receipt for dry edible beans must state the 
 grade of the dry edible beans delivered to the grain warehouse 
 and the redelivery charge required under subdivision 10a, 
 paragraph (a).  

    (e) An electronic version of a grain warehouse receipt 
 generated by a vendor licensed and approved by the United States 
 Department of Agriculture that contains the same information as 
 the paper version of a grain warehouse receipt may be issued 
 instead of a paper document.  The electronic version of a grain 
 warehouse receipt carries the same rights and obligations as the 
 paper version.  At no time may a paper receipt and an electronic 
 receipt represent the same lot of grain.  Redemption of an 
 electronic version of a warehouse receipt may be accomplished by 
 the warehouse receipt holder applying an electronic signature 
 registered and authenticated by a vendor credited by the United 
 States Department of Agriculture. 

    Subd. 5.    Void agreements; penalty.  A provision or 
 agreement in a grain warehouse receipt not contained in 
 subdivision 4 is void.  The failure to issue a grain warehouse 
 receipt, as directed, or the issuance of slips, memoranda or 
 other forms of receipt embracing a different grain warehouse or 
 storage contract is a misdemeanor, and no slip, memorandum or 
 other form of receipt is admissible as evidence in any civil 
 action.  Nothing in sections 232.20 to 232.25 requires or 
 compels any person operating a flour, cereal or feed mill or 
 malthouse doing a manufacturing business, to receive, store or 
 purchase at the mill or malthouse any kind of grain.  

    Subd. 6.    Liability.  A public grain warehouse 
 operator is liable to the depositor for the delivery of the 
 kind, grade, and net quantity of grain called for by the grain 
 warehouse receipt or scale ticket marked "store." 

    Subd. 7.    Grain not received.  No public grain 
 warehouse operator may issue a grain warehouse receipt for grain 
 not actually received into the grain warehouse.  

    Subd. 8.    Record of grain warehouse receipts.  A 
 receipt record stating the grain warehouse receipt number and 
 date of deposit, gross weight, dockage and net weight shall 
 remain in the possession of the public grain warehouse operator 
 issuing the grain warehouse receipt and shall be open for 
 inspection by the commissioner or interested parties.  

    Subd. 9.    Warehouse operator shall keep record.  A 
 public grain warehouse operator must keep a proper record of all 
 grain received, stored or shipped, stating the weight, grade, 
 dockage, and the name of the owner.  

    Subd. 10.    Delivery of grain.  (a) On the redemption 
 of a grain warehouse receipt and payment of all lawful charges, 
 the grain represented by the receipt is immediately deliverable 
 to the depositor or the depositor's order, and is not subject to 
 any further charge for storage after demand for delivery has 
 been made and proper facilities for receiving and shipping the 
 grain have been provided.  If delivery has not commenced within 
 48 hours after demand has been made and proper facilities have 
 been provided, the public grain warehouse operator issuing the 
 grain warehouse receipt is liable to the owner in damages not 
 exceeding two cents per bushel for each day's delay, unless the 
 public grain warehouse operator makes delivery to different 
 owners in the order demanded as rapidly as it can be done 
 through ordinary diligence, or unless insolvency has occurred.  

    (b) If a disagreement arises between the person receiving 
 and the person delivering the grain at a public grain warehouse 
 in this state as to the proper grade or dockage of any grain, an 
 average sample of at least three quarts of the grain in dispute 
 may be taken by either or both of the persons interested.  The 
 sample shall be certified by both the owner and the public grain 
 warehouse operator as being true samples of the grain in dispute 
 on the delivery day.  The samples shall be forwarded in a 
 suitable airtight container by parcel post or express, prepaid, 
 with the name and address of both parties, to the head of the 
 grain inspection program of the Department of Agriculture, who 
 shall, upon request, examine the grain, and determine what grade 
 or dockage the samples of grain are entitled to under the 
 inspection rules.  Before the results of the inspection are 
 released to the person requesting the inspection, the person 
 shall pay the required fee.  The fee shall be the same as that 
 required for similar services rendered by the grain inspection 
 program.  

    Subd. 10a.    Redelivery of dry edible beans.  (a) A 
 public grain warehouse shall deliver dry edible beans to a 
 holder of a warehouse receipt after the warehouse receipt holder 
 pays a redelivery charge and the charges accrued until the time 
 the warehouse receipt is surrendered to the grain warehouse 
 operator.  The dry edible beans must be dry and processed to 
 acceptable standards for canning and packaging use.  The 
 redelivery charge may not exceed $3 per net hundredweight of the 
 dry edible beans.  The commissioner may determine the maximum 
 redelivery charge by rule, after receiving a petition to change 
 the redelivery charge signed by at least 25 dry edible bean 
 processors, producers, and public warehouse operators. 

    (b) A grain warehouse operator shall deliver dry edible 
 beans in bags or in bulk as requested by the warehouse receipt 
 holder.  The warehouse receipt holder shall furnish the bags if 
 dry edible beans are to be bagged. 

    (c) A grain warehouse operator shall grade the dry edible 
 beans if requested by the warehouse receipt holder.  The grain 
 warehouse operator may determine grade by United States 
 Department of Agriculture standards, Northharvest standards, or 
 Michigan Bean Shippers Association standards.  The warehouse 
 receipt holder shall pay grading fees. 

    Subd. 11.    Termination of storage contract.  Storage 
 contracts on grain being stored at public grain warehouses 
 terminate on the expiration date of the storage license under 
 which the grain warehouse operates.  The expiration date must be 
 plainly imprinted on each grain warehouse receipt issued by a 
 public grain warehouse operator.  Grain storage may be 
 terminated by the depositor at any time before the expiration 
 date by the payment or tender of all legal charges and the 
 surrender of the grain warehouse receipt together with a demand 
 for delivery of the grain or notice to the public grain 
 warehouse operator to sell the grain.  In the absence of a 
 demand for delivery, order to sell or mutual agreement for the 
 renewal of the storage contract, entered prior to the expiration 
 of the original storage contract, the public grain warehouse 
 operator shall, upon the expiration of the contract, and after 
 notification by registered letter to the depositor, sell the 
 stored grain at the local market price on the close of business 
 on that day, deduct from the proceeds of the sale all legal 
 accrued charges, and pay the balance of the proceeds to the 
 depositor upon surrender of the grain warehouse receipt.  

    Subd. 12.    New grain warehouse receipt.  Upon the 
 payment of all legally accrued charges and the return of the 
 grain warehouse receipt, the public grain warehouse operator and 
 the depositor may by mutual consent enter into an agreement for 
 renewal of the grain storage.  When the agreement is made, the 
 warehouse operator shall issue a new grain warehouse receipt to 
 the owner and cancel the former grain warehouse receipt by 
 endorsing on it the words "Canceled by the issuance of grain 
 warehouse receipt No...," and inserting the number of the new 
 grain warehouse receipt in the blank space.  The canceled grain 
 warehouse receipt shall be signed by the warehouse operator and 
 the depositor.  

    Subd. 13.    Unauthorized sale of grain.  Except as 
 provided in subdivision 11, no warehouse operator may sell or 
 dispose of or deliver out of store any grain stored without the 
 express authority of the depositor and the return of the grain 
 warehouse receipt.  

    Subd. 14.    Pooling prohibited.  It is unlawful for a 
 public grain warehouse operator or the operator's agent to enter 
 into a contract, agreement, combination or understanding with 
 any other public grain warehouse operator whereby the amount of 
 grain to be received or handled by the grain warehouses is 
 equalized or pooled between the grain warehouses, whereby the 
 profits or earnings derived from the grain warehouses is 
 equalized, pooled or apportioned or whereby the price to be paid 
 for any kind of grain at the grain warehouses is fixed or in any 
 manner affected.  Each continued day of the contract, agreement, 
 combination or understanding is a separate offense.  

    Subd. 15.    Closing or destruction of grain warehouse.  
 (a) In case of loss or destruction by fire or other cause for 
 the closing of a public grain warehouse, the licensee shall 
 immediately notify the Department of Agriculture in writing.  

    (b) Whenever a grain warehouse is closed for more than 48 
 consecutive hours, not including Sundays and legal holidays, the 
 grain warehouse operator shall advise all patrons of the closing 
 by posting conspicuously at each entrance a notice showing the 
 date of reopening and giving the name and telephone number of a 
 person authorized to act as agent for the purpose of making 
 redeliveries, purchases or conducting other grain warehouse 
 business.  

    Subd. 16.    Insurance required.  The operator of a 
 public grain warehouse must keep all grain in the grain 
 warehouse fully insured against loss by fire, windstorm and 
 extended coverage risks and shall furnish the Department of 
 Agriculture with evidence it requires that the insurance is in 
 force.  

    HIST: 1982 c 508 s 4; 1988 c 688 art 14 s 3,4; 2000 c 477 s 
 64-66; 2004 c 254 s 35 

     232.24 Schedule of inspection, financial reports. 

    Subdivision 1.    Schedule of inspection.  A licensee 
 under sections 232.20 to 232.25 is subject to two audits 
 annually conducted by the commissioner or the agricultural 
 marketing service of the United States Department of 
 Agriculture.  The commissioner may, by rule, authorize one audit 
 to be conducted by a qualified nongovernmental unit.  

    Subd. 2.    Financial reports.  A licensee under 
 sections 232.20 to 232.25 must provide to the commissioner a 
 copy of the financial reports of an audit conducted by a 
 qualified nongovernmental unit containing information the 
 commissioner requires.  

    Subd. 3.    Inspection, sampling.  The commissioner or 
 the commissioner's authorized agent shall sample, inspect, and 
 grade grains received or distributed from grain warehouses at 
 such time and place and to such an extent as the commissioner 
 may deem necessary to determine whether sampling, inspection, 
 and grading conducted by the warehouse operator conforms with 
 the standards set by the Board of Grain Standards.  The 
 commissioner may obtain any additional information the 
 commissioner deems necessary and is authorized to enter upon any 
 public or private premises during regular business hours in 
 order to carry out the provisions of this subdivision.  

    HIST: 1982 c 508 s 5; 1986 c 444 

     232.25 Penalty. 

    A person who violates the provisions of sections 232.20 to 
 232.25 is guilty of a misdemeanor.  The department may, if it 
 finds after a hearing that any of the provisions of sections 
 232.20 to 232.25 have been violated by a person holding a 
 license to operate a public grain warehouse, suspend or revoke 
 the license.  In case of revocation, no new license shall be 
 granted to the person whose license was revoked nor to any one 
 either directly or indirectly engaged in the licensed business 
 for two years.  

    HIST: 1982 c 508 s 6; 1986 c 444