Nebraska State Statutes (as of 4/18/07)

 

Grain Warehouse Act

 

Contact:  Nebraska Public Service Commission

Grain Warehouses Department

(402) 471-0235

 

 ____________________________________________________________________

 

Section 88-525
Act, how cited.

Sections 88-525 to 88-552 shall be known and may be cited as the Grain Warehouse Act.


Source:

Laws 1987, LB 164, ? 1
Laws 1996, LB 1123, ? 4
Laws 2003, LB 735, ? 7
Laws 2005, LB 492, ? 2


~Revised Statutes Cumulative Supplement, 2006

Section 88-526
Terms, defined.

As used in the Grain Warehouse Act, unless the context otherwise requires:

(1) Commission means the Public Service Commission;

(2) Direct delivery grain means all grain that is bought, sold, or transported in the name of a warehouse licensee, other than grain that is received at the licensed warehouse facilities;

(3) Direct delivery obligation means the obligation of a warehouse licensee or grain dealer to transfer title to warehouse-owned grain to a producer by an in-store transfer upon the delivery of direct delivery grain. A direct delivery obligation is treated as a grain dealer obligation until such time as it is satisfied by an in-store transfer;

(4) Grain means wheat, corn, oats, soybeans, barley, rye, flax, or sorghum which has not been processed or packaged for the purpose of distribution as seed, including, but not limited to, edible beans, whole corn plant pellets, alfalfa pellets, millet, sunflower seed, safflower seed, and any other bulk pelleted agricultural storable commodity;

(5) Grain dealer has the same meaning as in section 75-902;

(6) Grain in storage means any grain which has been received at any warehouse and to which title has not been transferred to the warehouseman by signed contract or priced scale ticket;

(7) In-store transfer means a method by which a warehouse licensee transfers title to warehouse-owned grain to any person in satisfaction of a direct delivery obligation between the warehouse licensee or grain dealer and the producer, and the grain remains in the warehouse;

(8) Post-direct delivery storage position means a storage position acquired through an in-store transfer in satisfaction of a direct delivery obligation;

(9) Warehouse means any grain elevator, mill, grist mill, building, or receptacle in which grain is held in storage for more than ten consecutive days;

(10) Warehouse licensee means any warehouseman who is licensed pursuant to the Grain Warehouse Act; and

(11) Warehouseman means any person, partnership, limited liability company, corporation, or association who (a) receives grain for storage or stores or offers to store grain for legal consideration for another person, partnership, limited liability company, corporation, or association in a warehouse where delivered or (b) receives grain for shipment to other points for storage, consignment, or resale either in or out of this state.


Source:

Laws 1987, LB 164, ? 2
Laws 1993, LB 121, ? 563
Laws 2003, LB 735, ? 8
Laws 2005, LB 439, ? 4


~Revised Statutes Cumulative Supplement, 2006

Section 88-527
Warehouses; warehouseman; license required; inspection; commission; powers and duties; fees; agreements with bordering states.

(1) No person shall operate a warehouse nor act as a warehouseman without a license issued pursuant to the Grain Warehouse Act. Warehouses, except warehouses which are licensed under the United States Warehouse Act, shall be licensed and regulated by the commission. If the applicant is an individual, the application shall include the applicant's social security number. Such warehouses shall be inspected by the commission at least once every twelve months.

(2) If the commission determines that additional examinations are necessary after a regular examination is completed at a warehouse, the commission may charge such warehouse for the cost of the additional examinations according to the commission's fee schedule. Warehouses shall only be charged if such examinations are for reasons of irregularities from the previous examination or if financial conditions warrant additional examinations.

(3) The commission may make available to the United States Government or any of its agencies, including the Commodity Credit Corporation, the results of inspections made and inspection reports submitted by employees of the commission upon payment of such fees as may be determined by the commission. The fees shall cover the actual cost of the services rendered in regard to providing the information.

(4) The commission may charge for inspections conducted at the request of a warehouse licensee.

(5) The commission may assess a surveillance fee against the assets of a warehouse licensee for actual expenses incurred by the commission in suspending a license or terminating the operations of a warehouse licensee. The commission may enter into contracts for such purpose and shall keep a record of all surveillance fees collected. All surveillance fees collected by the commission shall be remitted to the State Treasurer for credit to the Nebraska Grain Warehouse Surveillance Cash Fund.

(6) The commission may enter into agreements and contracts with regulators in states which border Nebraska for the purpose of licensing or examining any public grain warehouseman which operates facilities in such states. The commission shall assume all jurisdiction over any warehouseman headquartered in Nebraska regarding his or her warehouse activity. A warehouseman headquartered and licensed in another state which acquires facilities in Nebraska is under the jurisdiction of the headquarter state under the terms of such agreement or contract.


Source:

Laws 1987, LB 164, ? 3
Laws 1988, LB 872, ? 1
Laws 1996, LB 1123, ? 5
Laws 1997, LB 752, ? 232
Laws 1999, LB 172, ? 1
Laws 2003, LB 735, ? 9
Laws 2005, LB 492, ? 5


~Revised Statutes Cumulative Supplement, 2006

Section 88-528
License; application; criminal background check; financial statement.

Each applicant for a license and each warehouse licensee shall annually file an application with the commission and shall submit to a criminal background check as set forth in section 88-528.01. The application shall be in the form prescribed by the commission to do business under the Grain Warehouse Act and shall include an audited or reviewed fiscal year-end financial statement prepared in accordance with accounting principles generally accepted by a person or firm which holds a permit granted by the Nebraska State Board of Public Accountancy. If the applicant files a reviewed fiscal year-end financial statement, the applicant shall also provide additional security pursuant to section 88-530 in such amount as the commission requires. If licensing as an individual, the financial statement shall be prepared in accordance with Other Comprehensive Basis of Accountancy, as filed with the board, for a personal financial statement, using historical cost and accrual basis of accounting. The financial statement shall include: (1) A balance sheet; (2) a statement of income showing profit or loss; (3) a statement of retained earnings; (4) a statement of changes in the financial position; and (5) the accountant's certifications, assurances, opinions, comments, and notes with regard to such financial statement. An applicant may also submit a valuation of assets by competent appraisal acceptable to the commission for inclusion in computing net worth for the purpose of meeting any net worth requirements imposed by the act or rules and regulations of the commission. If a valuation of assets is submitted, no more than seventy percent of appraised value shall be used in determining compliance with net worth requirements. Such application shall set forth the location of the warehouse to be used by the applicant, its relation to railroad trackage, its capacity, its general plan and equipment, and its ownership.

If an applicant for a license is a wholly owned subsidiary of a parent company and such a financial statement is not prepared for the subsidiary, the parent company shall submit its audited or reviewed fiscal year-end financial statement and shall execute an unconditional guarantee agreement as prescribed by the commission. A parent company may also submit a valuation of assets on behalf of an applicant that is a wholly owned subsidiary of the parent company.


Source:

Laws 1987, LB 164, ? 4
Laws 2003, LB 735, ? 10
Laws 2005, LB 52, ? 4
Laws 2005, LB 439, ? 5

Cross References:

Public accountant permit,see section 1-136.


~Revised Statutes Cumulative Supplement, 2006

Section 88-528.01
Criminal history record information check; fingerprinting; when.

For each application filed under section 88-528 after January 1, 2004, one of the following primary parties shall be subject to fingerprinting and a check of his or her criminal history record information maintained by the Federal Bureau of Investigation through the Nebraska State Patrol: (1) If the applicant is not an individual, the chief executive officer, president, or general manager; or (2) if the applicant is an individual, the individual. If the primary party has been subject to a check of his or her criminal history record information pursuant to this section on a prior application, he or she is not subject to another such check upon a subsequent application. If a primary party has been subject to a check of his or her criminal history record information pursuant to another law, the commission may waive such requirement under this section. A primary party shall furnish to the Nebraska State Patrol a full set of fingerprints to enable a criminal background investigation to be conducted. The primary party shall request that the Nebraska State Patrol submit the fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The primary party shall pay the actual cost, if any, of the fingerprinting and check of his or her criminal history record information. The primary party shall authorize release of the national criminal history record check to the commission. The criminal history record information check shall be completed within ninety days after the date the application for a license is received in the commission's office, and if not, the application shall be returned to the applicant. The commission shall deny a warehouse license to any applicant whose primary party has been convicted of a felony financial crime.


Source:

Laws 2003, LB 735, ? 11
Laws 2005, LB 52, ? 5


~Revised Statutes Cumulative Supplement, 2006

Section 88-529
License fees.

The commission shall charge an annual license fee for each warehouse to be operated, except as provided in section 88-531. The fee for any license issued for less than twelve months shall be prorated based on its duration. The annual license fee shall be as provided in this section.

Capacity in Bushels

Fee

0

—

10,000

$ 45

10,001

—

25,000

57

25,001

—

50,000

68

50,001

—

75,000

78

75,001

—

100,000

90

100,001

—

150,000

102

150,001

—

200,000

113

200,001

—

250,000

125

250,001

—

300,000

135

300,001

—

350,000

147

350,001

—

400,000

156

400,001

—

450,000

170

450,001

—

500,000

180

500,001

—

600,000

192

600,001

—

700,000

203

700,001

—

800,000

215

800,001

—

900,000

225

900,001

—

1,000,000

237

1,000,001

—

2,000,000

338

2,000,001

—

3,000,000

395

3,000,001

—

4,000,000

450

4,000,001

—

5,000,000

507

5,000,001

—

6,000,000

563

6,000,001

—

7,000,000

620

7,000,001

—

8,000,000

675

8,000,001

—

9,000,000

732

9,000,001

—

10,000,000

788

10,000,001

—

11,000,000

845

11,000,001

—

15,000,000

1,070

15,000,001

—

20,000,000

1,350

20,000,001

—

25,000,000

1,632

25,000,001

—

30,000,000

1,913

30,000,001

—

40,000,000

2,475

40,000,001

or more

3,375


Source:

Laws 1987, LB 164, ? 5
Laws 2003, LB 187, ? 33


~Revised Statutes Cumulative Supplement, 2006

Section 88-530
Financial requirements; security; requirements; liability of surety.

Each applicant shall show sufficient net worth or stockholders' equity to conform with the financial requirements which the commission shall establish by the adoption and promulgation of rules and regulations. Applicants shall file with the commission security in the form of a bond, a certificate of deposit, an irrevocable letter of credit, United States bonds or treasury notes, or other public debt obligations of the United States which are unconditionally guaranteed as to both principal and interest by the United States in such sum as the commission may require and in the form and of the kind prescribed by the commission. The security shall be in an amount set by the commission pursuant to rules and regulations, but shall not be less than twenty-five thousand dollars. The security shall run to the State of Nebraska for the benefit of each person who stores grain in such warehouse and of each person who holds a check for purchase of grain stored in such warehouse which was issued by the warehouse licensee not more than five business days prior to the cutoff date of operation of the warehouse, which shall be the date the commission officially closes the warehouse. The security shall be conditioned upon (1) the warehouse licensee carrying combustion, fire, lightning, and tornado insurance sufficient to cover loss upon all stored grain in such warehouse, (2) the delivery of the grain upon surrender of the warehouse receipt, and (3) the faithful performance by the warehouse licensee of all provisions of law relating to the storage of grain by such warehouse licensee and rules and regulations adopted and promulgated by the commission. The commission may require increases in the amount of the security from time to time as it may deem necessary for the protection of the storers. For an applicant who has filed a reviewed fiscal year-end financial statement pursuant to section 88-528, the commission shall require additional security in an amount set by the commission pursuant to rules and regulations, which shall not be less than twenty-five thousand dollars and not more than five hundred thousand dollars. The surety on a bond shall be a surety company licensed by the Department of Insurance. An irrevocable letter of credit or certificate of deposit shall be issued by a federally insured depository institution.

The security shall particularly describe the warehouse intended to be covered by the security. The liability of the surety on a bond shall not accumulate for each successive license period which the bond covers. The liability of the surety shall be limited to the amount stated on the bond or on an appropriate rider or endorsement to the bond.


Source:

Laws 1987, LB 164, ? 6
Laws 1989, LB 78, ? 29
Laws 2003, LB 735, ? 12


~Revised Statutes Cumulative Supplement, 2006

Section 88-530.01
Commission; additional financial documents required; when.

In addition to the reviewed fiscal year-end financial statement required by section 88-528 and to detect noncompliance with financial requirements established by the commission pursuant to section 88-530, the commission shall, for good cause shown as determined by criteria set forth in commission rules and regulations, require (1) a verified report of the total grain inventory or (2) an audited financial statement. A verified report of grain inventory or audited financial statement shall be prepared in accordance with accounting principles generally accepted by a person or firm which holds a permit granted by the Nebraska State Board of Public Accountancy.


Source:

Laws 2003, LB 735, ? 13
Laws 2005, LB 52, ? 6


~Revised Statutes Cumulative Supplement, 2006

Section 88-531
License; multiple warehouses; license fee; how computed.

Only one license may be required for the operation of all warehouses operated by one warehouse licensee if:

(1) Only one set of books is kept for the warehouses;

(2) Cost slips, scale tickets, warehouse receipts, and checks are issued in one series for grain received or stored in such warehouses; and

(3) The warehouses are operated in conjunction with each other.

If the commission finds that enforcement of the Grain Warehouse Act or the interests of the storers requires that warehouses operated by the same licensee at separate locations be licensed separately, it may require separate licenses for such facilities pursuant to rules and regulations adopted and promulgated by the commission.

The license fee and security required of such warehouse licensee shall be computed on the basis of the separate capacities of each warehouse.


Source:

Laws 1987, LB 164, ? 7
Laws 1989, LB 78, ? 30


~Reissue Revised Statutes of Nebraska

Section 88-532
License; issuance; expiration; renewal; posting requirements.

Upon payment of the license fee and approval by the commission of the application and the bond, certificate of deposit, irrevocable letter of credit, or other security described in section 88-530, the license shall be issued. A new or renewed license shall expire twelve calendar months after the effective date of the issuance or renewal of such license. A license may be kept in continuous force and effect if the warehouse licensee files a proper application for renewal and security which the commission can approve prior to the date of termination.

Notice of the security in the form prescribed by the commission shall be posted in a conspicuous place in each warehouse showing the amount of security on the stored grain. Each warehouse licensee shall also post in a conspicuous place in each warehouse office the storage fees and receiving and load-out fees charged for each type of grain stored.


Source:

Laws 1987, LB 164, ? 8
Laws 1989, LB 78, ? 31


~Reissue Revised Statutes of Nebraska

Section 88-533
Increase in storage capacity; requirements; fees.

No warehouse licensee shall increase storage capacity without first obtaining the approval of the commission and effecting such revisions in its security as may be required by the commission. Additional fees may be imposed for increases in storage capacity or for any other changes in the license in such reasonable amounts as may be prescribed by the commission.


Source:

Laws 1987, LB 164, ? 9


~Reissue Revised Statutes of Nebraska

Section 88-534
Payment for grain; when.

Payment to the seller for grain purchased by a warehouse licensee shall be made upon demand by the seller except as otherwise provided by written or oral contract between the parties.


Source:

Laws 1987, LB 164, ? 10


~Reissue Revised Statutes of Nebraska

Section 88-535
Scale ticket; issuance; prima facie evidence.

Each warehouse licensee shall, at the time of the delivery of grain to or the shipment of grain from a warehouse, issue a lawful scale ticket to the owner or consignee of such grain, except when the delivery or shipment is by rail or water. The scale tickets shall contain all information prescribed by the commission. A scale ticket issued by a warehouse licensee shall be prima facie evidence of the holder's claim of title to the goods described in such ticket.


Source:

Laws 1987, LB 164, ? 11


~Reissue Revised Statutes of Nebraska

Section 88-536
Receipts; issuance; requirements; commission; powers and duties; registration.

(1) Within fifteen days after demand by the owner or deliverer of any grain to a warehouse for storage, the warehouse licensee shall issue a lawful negotiable or nonnegotiable receipt to such owner or deliverer of such grain. The receipt shall state the date of delivery, the name of the owner, and the grade, gross weight, dockage, and net weight of the grain represented in the receipt.

(2)(a) The commission shall prepare forms for such receipts and may adopt procedures for the electronic issuance of such receipts. All warehouse licensees shall either use forms prepared by the commission for such receipts or follow procedures adopted by the commission for electronic issuance of such receipts. Warehouse licensees that use forms prepared by the commission shall register such receipts with the commission.

(b) The commission shall fix charges to be assessed and collected for such warehouse receipt forms not to exceed the cost of printing, delivering, and handling. Payment of such charges shall be made in advance of delivery of such receipt forms and shall entitle each such receipt to registration without any further charge or fee. The commission may make refunds of such charges for such unused receipt forms as may be returned to the commission.

(c) All procedures for electronic filing of receipts adopted by the commission shall comply with section 86-611. The commission may adopt authentication procedures to verify receipts issued electronically. Compliance with the authentication procedures adopted by the commission shall have the same validity as a signature on any receipt.

(3) Any warehouse licensee may issue a receipt to himself or herself as the owner of grain stored in his or her own warehouse, which receipt shall be registered with the commission. Upon receiving any such grain warehouse receipt for registration and being satisfied that the provisions of the Grain Warehouse Act and any rules and regulations adopted and promulgated pursuant to the act have been complied with, the commission shall cause such receipt to be registered.


Source:

Laws 1987, LB 164, ? 12
Laws 2003, LB 735, ? 14


~Revised Statutes Cumulative Supplement, 2006

Section 88-537
Duplicate receipt; issuance; requirements; liability.

When a negotiable warehouse receipt has been lost or destroyed, the commission may approve the delivery of the grain or the issuance of a duplicate receipt upon satisfactory proof of such loss or destruction if the party who requests it furnishes a bond with corporate or personal surety, to be approved by the commission, conditioned to indemnify the warehouse licensee or any holder or other person entitled to the grain against all loss, liability, or expense which may be sustained by reason of such delivery. The delivery of the grain or the issuance of a duplicate receipt pursuant to the approval of the commission shall not relieve the warehouse licensee from liability to a person to whom the negotiable receipt has been or will be negotiated for value without notice of the proceedings before the commission or of the delivery of the grain or the issuance of the duplicate receipt pursuant to such proceedings.</