2007 Minnesota Statutes

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