Missouri Statute | Act | Code |Agriculture And Animals| US Code - US Statute | Chapter 276 Stockyards, Grain And Produce Exchanges

Any stockyards in the state of Missouri, maintained for the
purpose of receiving cattle, hogs or sheep to be bought, sold or
exchanged, is hereby declared to be a public market, and any person, firm
or corporation maintaining such public market, or any person, firm or
corporation buying, selling or exchanging any cattle, hogs or sheep at
such public market, shall, in maintaining, or in buying, selling or
exchanging at such public market, be subject to the provisions of
sections 276.010 to 276.080. (RSMo 1939 § 14383)

Prior revision: 1929 § 12725

CROSS REFERENCE: Corporate barn infected with contagious disease to be
disinfected under direction of state veterinarian, RSMo 267.120

Persons, firms and corporations buying, selling or exchanging at
such public market shall have the right to associate themselves together
in an association or organization, and such association or organization
may make and enforce reasonable rules and regulations for the government
of the association or organization and for the government of its members,
in relation to their buying, selling or exchanging at such public market,
but it shall be unlawful for any such association or organization, or for
any officer or officers thereof, to make any order, rule, regulation or
bylaw limiting the right of any member of the association or organization
to distribute, in whatever manner and at whatever times the member may
desire, to the persons composing any partnership in which the member is
financially interested or to the shareholders of any corporation or
cooperative association in which such member is a shareholder, the
profits of such member to the persons composing such partnership or to
the shareholders of such corporation or cooperative association, in
proportion to the quantity of cattle, hogs or sheep shipped to or from
such member by the persons composing such partnership or the shareholders
of such corporation or cooperative association, and any such order, rule,
regulation or bylaw now or hereafter made, promulgated or adopted shall
be invalid and void. (RSMo 1939 § 14384)

Prior revision: 1929 § 12726

It is hereby declared unlawful for any such association or
organization to refuse membership or to unreasonably delay the granting
of membership in such association or organization to any applicant for
membership because of the manner, times or method in which such applicant
intends to or does distribute the profits of such applicant to the
persons composing any partnership in which the applicant is financially
interested or to the shareholders of any corporation or cooperative
association in which the member is a shareholder, and any refusal on the
part of such association or organization to admit to membership or any
unreasonable delay in admitting to membership any applicant for
membership who intends to or does distribute to the persons composing any
partnership in which the applicant is financially interested or to the
shareholders of any corporation or cooperative association in which such
applicant is a shareholder, the profits of such applicant to the persons
composing such partnership or to the shareholders of such corporation or
cooperative association, in proportion to the quantity of cattle, hogs or
sheep shipped to or from such member by the persons composing such
partnership or the shareholders of such corporation or cooperative
association, shall be prima facie evidence that such refusal or such
unreasonable delay is because such applicant for membership intends to or
does so distribute the profits of such applicant, and any such applicant
for membership shall have the right to have the action of such
association or organization, in refusing or unreasonably delaying the
issuance of said membership, summarily reviewed by the circuit court by
filing therein a petition praying the circuit court to cause such
association or organization to show cause why it has refused or
unreasonably delayed the issuance of said membership, and if, upon the
trial, such association or organization fails to show some lawful and
reasonable cause for refusing or unreasonably delaying the issuance of
said membership to such applicant for membership, then the circuit court
shall, by proper order, compel the issuance of said membership to such
applicant; provided, that any limitation fixed by such association or
organization, or by the members thereof, as to the number of members
admitted to membership therein, shall not be a lawful or a reasonable
cause for refusing or unreasonably delaying the issuance of membership to
such applicant for membership; and provided further, that the review
provided for in this section shall be merely cumulative and shall in no
way relieve such association or organization, or any member thereof, from
the criminal or civil proceedings provided for in sections 276.010 to
276.080. (RSMo 1939 § 14385)

Prior revision: 1929 § 12727

It is hereby declared unlawful for any person, firm or
corporation maintaining any such public market to discriminate, in any
manner whatever, against any person, firm or corporation buying, selling
or exchanging cattle, hogs or sheep at such public market. (RSMo 1939 §
14386)

Prior revision: 1929 § 12728

It is hereby declared unlawful for any two or more members of
any association or organization organized or maintained by persons, firms
or corporations buying, selling or exchanging cattle, hogs or sheep at
such public market, to enter into any arrangement, understanding or
agreement which shall limit, or have the effect of limiting, any member
in the exercise of the right to distribute, in such manner and at such
times as the member may desire, to the persons composing any partnership
in which the member is financially interested or to the shareholders of
any corporation or cooperative association in which such member is a
shareholder, the profits of such member to the persons composing such
partnership or to the shareholders of such corporation or cooperative
association, in proportion to the quantity of cattle, hogs or sheep
shipped to or from such member by the persons composing such partnership
or the shareholders of such corporation or cooperative association, or
which arrangement, understanding or agreement shall discriminate or have
the effect of discriminating or which shall cause discrimination or tend
to cause discrimination against such member because such member does so
distribute the profits of such member; and the fact that any arrangement,
understanding or agreement is made between two or more members of such
association or organization which does or tends to discriminate against
or which causes or tends to cause discrimination against any member who
does so distribute the member's profits shall be prima facie evidence
that such arrangement, understanding or agreement was made for the
purpose of discriminating or causing discrimination against such member
because such member does so distribute the profits of said member. (RSMo
1939 § 14387)

Prior revision: 1929 § 12729

It is hereby made the duty of the attorney general of the state
of Missouri, upon being informed that any of the provisions of sections
276.010 to 276.080 have been violated, to bring suit in the proper court
against any person, firm or corporation so violating sections 276.010 to
276.080, to procure the injunction provided for in section 276.070, and,
upon proof that the defendant in said suit has violated any provision of
sections 276.010 to 276.080, the court shall issue its permanent
injunction against said defendant, in accordance with section 276.070.
(RSMo 1939 § 14389)

Prior revision: 1929 § 12731

If any person, firm or corporation maintaining such public
market, or buying, selling or exchanging cattle, hogs or sheep at such
public market, shall violate any provision of sections 276.010 to
276.080, such person, firm or corporation shall be permanently enjoined
from maintaining, directly or indirectly, such public market, and from
buying, selling or exchanging any cattle, hogs or sheep at such public
market. (RSMo 1939 § 14388)

Prior revision: 1929 § 12730

Any person, firm or corporation violating any provision of
sections 276.010 to 276.080 shall be deemed guilty of a misdemeanor, and,
upon conviction, shall be fined for each offense not less than one
thousand dollars nor more than ten thousand dollars. (RSMo 1939 § 14390)

Prior revision: 1929 § 12732

Any regular place of business or trading room commonly known or
designated as a board of trade or grain exchange maintained or operated
by any organization, of whatever form or kind, for the members of such
organization, in which said place of business or trading room members of
such organization sell, buy or exchange grain or other farm products for
themselves or others, is hereby declared to be a public market, and said
public market, and the organization maintaining or operating the same,
and the members of said organization, in buying, selling or exchanging in
said market, shall be subject to the provisions of sections 276.090 to
276.150. (RSMo 1939 § 14391)

Prior revision: 1929 § 12733

Any such organization may make and enforce reasonable bylaws and
rules for the conduct of its members but such organization shall not make
any order, rule, regulation or bylaws limiting the right of any member of
the organization to distribute, in whatever manner and at whatever times
the member may desire, to the persons composing any partnership in which
the member is financially interested or to the shareholders of any
corporation or cooperative association in which such member is a
shareholder the* profits of such member to the persons composing such
partnership or to the shareholders of such corporation or cooperative
association in proportion to the quantity of grain or other farm products
shipped to such member by the persons composing such partnership or the
shareholders of such corporation or cooperative association and any such
order, rule, regulation or bylaw now nor hereafter, made, promulgated or
adopted shall be invalid and void. (RSMo 1939 § 14392)

Prior revision: 1929 § 12734

*Word "to" appears in original rolls.

It is hereby declared unlawful for any two or more members of
such organization to enter into any arrangement, understanding or
agreement which shall limit, or have the effect of limiting, any member
in the exercise of the right to distribute, in such manner and at such
times as the member may desire, to the persons composing any partnership
in which the member is financially interested or to the shareholders of
any corporation or cooperative association in which such member is a
shareholder, the profits of such member to the persons composing such
partnership or to the shareholders of such corporation or cooperative
association in proportion to the quantity of grain or other farm products
shipped to such member by the persons composing such partnership or the
shareholders of such corporation or cooperative association, or which
arrangement, understanding or agreement shall discriminate or have the
effect of discriminating or which shall cause discrimination or tend to
cause discrimination against such member because such member does so
distribute the profits of such member; and the fact that any arrangement,
understanding or agreement is made between two or more members of such
organization which does or tends to discriminate against or which causes
or tends to cause discrimination against any member who does so
distribute the member's profits, shall be prima facie evidence that such
arrangement, understanding or agreement was made for the purpose of
discriminating or causing discrimination against such member because such
member does so distribute the profits of said member. (RSMo 1939 § 14393)

Prior revision: 1929 § 12735

It is hereby declared unlawful for any such organization to
refuse membership or to unreasonably delay the granting of membership in
such organization to any applicant for membership because of the manner,
times or method in which such applicant intends to or does distribute the
profits of such applicant to the persons composing any partnership in
which the applicant is financially interested or to the shareholders of
any corporation or cooperative association in which the member is a
shareholder, and any refusal on the part of such organization to admit to
membership or any unreasonable delay in admitting to membership any
applicant for membership who intends to or does distribute to the persons
composing any partnership in which such applicant is financially
interested or to the shareholders of any corporation or cooperative
association in which such applicant is a shareholder, the profits of such
applicant to the persons composing such partnership or to the
shareholders of such corporation or cooperative association in proportion
to the quantity of grain or other farm products shipped to such member by
the persons composing such partnership or the shareholders of such
corporation or cooperative association, shall be prima facie evidence
that such refusal or such unreasonable delay is because such applicant
for membership intends to or does so distribute its profits, and any such
applicant for membership shall have the right to have the action of such
organization, in refusing or unreasonably delaying the issuance of said
membership, summarily reviewed by the circuit court, by filing therein a
petition praying the circuit court to cause such organization to show
cause why it has refused or unreasonably delayed the issuance of said
membership, and if, upon the trial, said organization fails to show some
lawful and reasonable cause for refusing or unreasonably delaying the
issuance of said membership to such applicant for membership, then the
circuit court shall, by proper order, compel the issuance of said
membership to such applicant; provided, that any limitation fixed by such
organization, or by the members thereof, as to the number of members
admitted to membership therein, shall not be a lawful or a reasonable
cause for refusing or unreasonably delaying the issuance of membership to
such applicant for membership; and provided further, that the review
provided for in this section shall be merely cumulative and shall in no
way relieve such organization, or any member thereof, from the criminal
or civil proceedings provided for in sections 276.090 to 276.150. (RSMo
1939 § 14394)

Prior revision: 1929 § 12736

It is hereby made the duty of the attorney general of the state
of Missouri, upon being informed that any of the provisions of sections
276.090 to 276.150 have been violated, to bring suit in the proper court
against any such organization, person, firm or corporation to procure the
injunction provided for in section 276.140, and upon proof that the
defendant in such suit has violated any provision of sections 276.090 to
276.150, the court shall issue its permanent injunction against such
defendant, in accordance with section 276.140. (RSMo 1939 § 14396)

Prior revision: 1929 § 12738

If any organization of whatever form or kind, maintaining or
operating a public market, as herein defined, shall violate any provision
of sections 276.090 to 276.150, such organization shall be permanently
enjoined from maintaining or operating, directly or indirectly, such
public market, and any person, firm, company or corporation violating any
provision of sections 276.090 to 276.150 shall be permanently enjoined
from buying, selling or trading, directly or indirectly, at such public
market. (RSMo 1939 § 14395)

Prior revision: 1929 § 12737

Any person, firm, company or corporation violating any provision
of sections 276.090 to 276.150 shall be deemed guilty of a misdemeanor,
and, upon conviction, shall be fined for each offense not less than one
thousand dollars nor more than ten thousand dollars. (RSMo 1939 § 14397)

Prior revision: 1929 § 12739

Any regular place of business or trading room commonly known or
designated as a poultry and egg exchange, or egg and poultry exchange, or
produce exchange, maintained or operated by any organization, of whatever
form or kind, for the members of such organization, in which said place
of business or trading room members of such organization sell, buy,
exchange, or bargain for poultry and eggs or other farm products for
themselves or others, is hereby declared to be a public market, and said
public market, and the organization maintaining or operating the same,
and the members of said organization, in buying, selling or exchanging in
said market, shall be subject to the provisions of sections 276.160 to
276.230. (RSMo 1939 § 14398)

Prior revision: 1929 § 12740

Any such organization may make and enforce reasonable bylaws and
rules for the conduct of its members, but such organization shall not
make any order, rule, regulation or bylaw limiting the right of any
member of the organization to distribute in whatever manner and at
whatever times the member may desire to the persons composing any
partnership in which the member is financially interested or to the
shareholders of any corporation or cooperative association in which such
member is a shareholder, the* profits of such member to the persons
composing such partnership or to the shareholders of such corporation or
cooperative association, in proportion to the quantity of poultry and
eggs or other farm products shipped to such member by the persons
composing such partnership or the shareholders of such corporation or
cooperative association, and any such order, rule, regulation or bylaw
now or hereafter made, promulgated or adopted shall be invalid and void.
(RSMo 1939 § 14399)

Prior revision: 1929 § 12741

*Word "to" appears in original rolls.

It is hereby declared unlawful for any two or more members of
such organization to enter into any arrangement, understanding or
agreement which shall limit, or have the effect of limiting, any member
in the exercise of the right to distribute, in such manner and at such
times as the member may desire, to the persons composing any partnership
in which the member is financially interested or to the shareholders of
any corporation or cooperative association in which such member is a
shareholder, the profits of such member to the persons composing such
partnership or to the shareholders of such corporation or cooperative
association in proportion to the quantity of poultry and eggs or other
farm products shipped to such member by the persons composing such
partnership or the shareholders of such corporation or cooperative
association, or which arrangement, understanding or agreement shall
discriminate or have the effect of discriminating or which shall cause
discrimination or tend to cause discrimination against such member
because such member does so distribute the profits of such member; and
the fact that any arrangement, understanding or agreement is made between
two or more members of such organization which does or tends to
discriminate against or which causes or tends to cause discrimination
against any member who does so distribute the member's profits, shall be
prima facie evidence that such arrangement, understanding or agreement
was made for the purpose of discriminating or causing discrimination
against such member because such member does so distribute the profits of
said member. (RSMo 1939 § 14400)

Prior revision: 1929 § 12742

It is hereby declared unlawful for any such organization to
refuse membership or to unreasonably delay the granting of membership in
such organization to any applicant for membership because of the manner,
times or method in which such applicant intends to or does distribute the
profits of such applicant to the persons composing any partnership in
which the applicant is financially interested or to the shareholders of
any corporation or cooperative association in which the member is a
shareholder, and any refusal on the part of such organization to admit to
membership or any unreasonable delay in admitting to membership any
applicant for membership who intends to or does distribute to the person
composing any partnership in which such applicant is financially
interested or to the shareholders of any corporation or cooperative
association in which such applicant is a shareholder, the profits of such
applicant to the persons composing such partnership or to the
shareholders of such corporation or cooperative association in proportion
to the quantity of poultry and eggs or other farm products shipped to
such member by the persons composing such partnership or the shareholders
of such corporation or cooperative association, shall be prima facie
evidence that such refusal or such unreasonable delay is because such
applicant for membership intends to or does so distribute its profits,
and any such applicant for membership shall have the right to have the
action of such organization, in refusing or unreasonably delaying the
issuance of said membership, summarily reviewed by the circuit court, by
filing therein a petition praying the circuit court to cause such
organization to show cause why it has refused or unreasonably delayed the
issuance of said membership, and if, upon the trial, said organization
fails to show some lawful and reasonable cause for refusing or
unreasonably delaying the issuance of said membership to such applicant
for membership, then the circuit court shall, by proper order, compel the
issuance of said membership to such applicant; provided, that any
limitation fixed by such organization, or by the members thereof, as to
the number of members admitted to membership therein, shall not be a
lawful or a reasonable cause for refusing or unreasonably delaying the
issuance of membership to such applicant for membership; and provided
further, that the review provided for in this section shall be merely
cumulative and shall in no way relieve such organization or any member
thereof, from the criminal or civil proceedings provided for in sections
276.160 to 276.230. (RSMo 1939 § 14401)

Prior revision: 1929 § 12743

It is hereby declared unlawful for any person, firm or
corporation maintaining any such public market to discriminate, in any
manner whatever, against any person, firm or corporation buying, selling
or exchanging poultry and eggs and other farm products at such public
market. (RSMo 1939 § 14402)

Prior revision: 1929 § 12744

It is hereby made the duty of the attorney general of the state
of Missouri, upon being informed that any of the provisions of sections
276.160 to 276.230 have been violated, to bring suit in the proper court
against any such organization, person, firm or corporation to procure the
injunction provided for in section 276.220, and upon proof that the
defendant in such suit has violated any provision of sections 276.160 to
276.230, the court shall issue its permanent injunction against such
defendant, in accordance with section 276.220. (RSMo 1939 § 14404)

Prior revision: 1929 § 12746

If any organization of whatever form or kind, maintaining or
operating a public market, as herein defined, shall violate any provision
of sections 276.160 to 276.230, such organization shall be permanently
enjoined from maintaining or operating directly or indirectly, such
public market, and any person, firm, company or corporation violating any
provision of sections 276.160 to 276.230 shall be permanently enjoined
from buying, selling or trading, directly or indirectly at such public
market. (RSMo 1939 § 14403)

Prior revision: 1929 § 12745

Any person, firm, company or corporation violating any provision
of sections 276.160 to 276.230 shall be deemed guilty of a misdemeanor.
(RSMo 1939 § 14405)

Prior revision: 1929 § 12747

1. Sections 276.401 to 276.582 shall be known as the "Missouri
Grain Dealer Law".

2. The provisions of the Missouri grain dealer law shall apply to grain
purchases where title to the grain transfers from the seller to the buyer
within the state of Missouri.

3. Unless otherwise specified by contractual agreement, title shall be
deemed to pass to the buyer as follows:

(1) On freight on board (FOB) origin or freight on board (FOB) basing
point contracts, title transfers at time and place of shipment;

(2) On delivered contracts, when and where constructively placed, or
otherwise made available at buyer's original destination;

(3) On contracts involving in-store commodities, at the storing warehouse
and at the time of contracting or transfer, and/or mailing of documents,
if required, by certified mail, unless and to the extent warehouse
tariff, warehouse receipt and/or storage contract assumes the risk of
loss and/or damage.

4. As used in sections 276.401 to 276.582, unless the context otherwise
requires, the following terms mean:

(1) "Auditor", a person appointed under sections 276.401 to 276.582 by
the director to assist in the administration of sections 276.401 to
276.582, and whose duties include making inspections, audits and
investigations authorized under sections 276.401 to 276.582;

(2) "Authorized agent", any person who has the legal authority to act on
behalf of, or for the benefit of, another person;

(3) "Buyer", any person who buys or contracts to buy grain;

(4) "Certified public accountant", any person licensed as such under
chapter 326, RSMo;

(5) "Claimant", any person who requests payment for grain sold by him to
a dealer, but who does not receive payment because the purchasing dealer
fails or refuses to make payment;

(6) "Credit sales contracts", a conditional grain sales contract wherein
payment and/or pricing of the grain is deferred to a later date. Credit
sales contracts include, but are not limited to, all contracts meeting
the definition of deferred payment contracts, and/or delayed price
contracts;

(7) "Current assets", resources that are reasonably expected to be
realized in cash, sold, or consumed (prepaid items) within one year of
the balance sheet date;

(8) "Current liabilities", obligations reasonably expected to be
liquidated within one year and the liquidation of which is expected to
require the use of existing resources, properly classified as current
assets, or the creation of additional liabilities. Current liabilities
include obligations that, by their terms, are payable on demand unless
the creditor has waived, in writing, the right to demand payment within
one year of the balance sheet date;

(9) "Deferred payment agreement", a conditional grain sales transaction
establishing an agreed upon price for the grain and delaying payment to
an agreed upon later date or time period. Ownership of the grain, and the
right to sell it, transfers from seller to buyer so long as the
conditions specified in section 276.461 and section 411.325, RSMo, are
met;

(10) "Deferred pricing agreement", a conditional grain sales transaction
wherein no price has been established on the grain, the seller retains
the right to price the grain later at a mutually agreed upon method of
price determination. Deferred pricing agreements include, but are not
limited to, contracts commonly known as no price established contracts,
price later contracts, and basis contracts on which the purchase price is
not established at or before delivery of the grain. Ownership of the
grain, and the right to sell it, transfers from seller to buyer so long
as the conditions specified in section 276.461 and section 411.325, RSMo,
are met;

(11) "Delivery date" shall mean the date upon which the seller transfers
physical possession, or the right of physical possession, of the last
unit of grain in any given transaction;

(12) "Department", the Missouri department of agriculture;

(13) "Designated representative", an employee or official of the
department designated by the director to assist in the administration of
sections 276.401 to 276.582;

(14) "Director", the director of the Missouri department of agriculture
or his designated representative;

(15) "Generally accepted accounting principles", the conventions, rules
and procedures necessary to define accepted accounting practice, which
include broad guidelines of general application as well as detailed
practices and procedures generally accepted by the accounting profession,
and which have substantial authoritative support from the American
Institute of Certified Public Accountants;

(16) "Grain", all grains for which the United States Department of
Agriculture has established standards under the United States Grain
Standards Act, Sections 71 to 87, Title 7, United States Code, and any
other agricultural commodity or seed prescribed by the director by
regulation;

(17) "Grain dealer" or "dealer", any person engaged in the business of,
or as a part of his business participates in, buying grain where title to
the grain transfers from the seller to the buyer within the state of
Missouri. "Grain dealer" or "dealer" shall not be construed to mean or
include:

(a) Any person or entity who is a member of a recognized board of trade
or futures exchange and whose trading in grain is limited solely to
trading with other members of a recognized board of trade or futures
exchange; provided, that grain purchases from a licensed warehouseman,
farmer/producer or any other individual or entity in a manner other than
through the purchase of a grain futures contract on a recognized board of
trade or futures exchange shall be subject to sections 276.401 to
276.582. Exempted herein are all futures transactions;

(b) A producer or feeder of grain for livestock or poultry buying grain
for his own farming or feeding purposes who purchases grain exclusively
from licensed grain dealers or whose total grain purchases from producers
during his or her fiscal year do not exceed one hundred thousand dollars;

(c) Any person or entity whose grain purchases in the state of Missouri
are made exclusively from licensed grain dealers;

(d) A manufacturer or processor of registered or unregistered feed whose
total grain purchases from producers during his or her fiscal year does
not exceed one hundred thousand dollars and who pays for all grain
purchases from producers at the time of physical transfer of the grain
from the seller or his or her agent to the buyer or his or her agent and
whose resale of such grain is solely in the form of manufactured or
processed feed or feed by-products or whole feed grains to be used by the
purchaser thereof as feed;

(18) "Grain transport vehicle", a truck, tractor-trailer unit, wagon,
pup, or any other vehicle or trailer used by a dealer, whether owned or
leased by him, to transport grain which he has purchased; except that,
bulk or bagged feed delivery trucks which are used principally for the
purpose of hauling feed and any trucks for which the licensed gross
weight does not exceed twenty-four thousand pounds shall not be construed
to be a grain transport vehicle;

(19) "Insolvent" or "insolvency", (a) an excess of liabilities over
assets or (b) the inability of a person to meet his financial obligations
as they come due, or both (a) and (b);

(20) "Interested person", any person having a contractual or other
financial interest in grain sold to a dealer, licensed, or required to be
licensed;

(21) "Location", any site other than the principal office where the grain
dealer engages in the business of purchasing grain;

(22) "Minimum price contract", a conditional grain sales transaction
establishing an agreed upon minimum price where the seller may
participate in subsequent price gain, if any. Ownership of the grain, and
the right to sell it, transfers from the seller to the buyer so long as
the conditions specified in section 276.461 and section 411.325, RSMo,
are met;

(23) "Person", any individual, partnership, corporation, cooperative,
society, association, trustee, receiver, public body, political
subdivision or any other legal or commercial entity of any kind
whatsoever, and any member, officer or employee thereof;

(24) "Producer", any owner, tenant or operator of land who has an
interest in and receives all or any part of the proceeds from the sale of
grain or livestock produced thereon;

(25) "Purchase", to buy or contract to buy grain;

(26) "Sale", the passing of title from the seller to the buyer in
consideration of the payment or promise of payment of a certain price in
money, or its equivalent;

(27) "Value", any consideration sufficient to support a simple contract.
(L. 1980 H.B. 1627 § 1, A.L. 1986 H.B. 1578, A.L. 1987 H.B. 751, A.L.
1997 H.B. 211 §§ 276.401, 276.404, A.L. 1999 S.B. 310 merged with S.B.
423)

Sections 276.401 to 276.581 constitute an exercise of state
police and regulatory power for the purpose of protecting and enhancing
grain production and marketing, and the agricultural economy of the state
of Missouri. These sections are deemed necessary to protect and to
preserve the public health, welfare, peace and safety of the general
citizenry. (L. 1986 H.B. 1578)

Effective 4-22-86

1. The director shall:

(1) Be responsible for the efficient administration of the supervisory
and regulatory powers authorized by sections 276.401 to 276.581 and the
regulations promulgated hereunder;

(2) Issue a license, in accordance with the provisions of sections
276.401 to 276.581, to any qualified applicant wishing to conduct
business as a licensed grain dealer;

(3) Provide for the filing and approval of the surety bonds required by
sections 276.401 to 276.581.

2. The director may:

(1) Promulgate and adopt such rules, regulations and standards in
accordance with the provisions of chapter 536, RSMo, as may be necessary
for the efficient and effective enforcement of sections 276.401 to
276.581;

(2) Appoint one or more designated representatives to act for the
director in any manner required to aid in the efficient administration of
sections 276.401 to 276.581 and the regulations promulgated hereunder;

(3) Require records or reports pertaining to grain purchases or grain
sales that the director deems necessary to ensure compliance with the
provisions of sections 276.401 to 276.581 and the regulations promulgated
hereunder;

(4) Prescribe procedures for hearings to be held in accordance with the
provisions of sections 276.401 to 276.581 and the regulations promulgated
hereunder;

(5) Issue subpoenas and bring before the department any person and take
testimony either orally, by deposition, or by exhibit in the same manner
as prescribed by law in judicial proceedings and civil cases in the
circuit courts of this state;

(6) Issue subpoenas duces tecum on any records relating to a grain
dealer's business;

(7) Bring actions, in the name of the state of Missouri in the circuit
court of any county wherein a grain dealer resides or is found in order
to enforce compliance with sections 276.401 to 276.581 and the
regulations promulgated hereunder by restraining order or injunction,
either temporary or permanent;

(8) Conduct, or appoint a designated representative to conduct,
administrative hearings pursuant to the provisions of sections 276.401 to
276.581, and chapter 536, RSMo. Hearings may be conducted for the purpose
of determining the liability of sureties which have filed bonds with the
department on behalf of grain dealers licensed, or required to be
licensed, under said sections. Hearings may be conducted for the purpose
of determining the validity of grain-related claims filed with the
department against such grain dealers and sureties, as well as the
subsequent disbursement of all available funds, pro rata or otherwise, to
satisfy claims determined to be valid. An order issued by the director,
or his designated representative, as a result of such hearings shall be
final and legally binding on all parties unless appealed as provided in
chapter 536, RSMo.

3. No rule or portion of a rule promulgated under the authority of this
chapter shall become effective unless it has been promulgated pursuant to
the provisions of section 536.024, RSMo. (L. 1980 H.B. 1627 § 2, A.L.
1986 H.B. 1578, A.L. 1993 S.B. 52, A.L. 1995 S.B. 3)

1. No person shall engage in business as a grain dealer in the
state of Missouri without having obtained a license therefor issued by
the director pursuant to sections 276.401 to 276.582. Following an
administrative hearing, the director may require the dealer to pay a
penalty of not more than five hundred dollars for each day the dealer is
found to be operating without a license or bond. In determining whether
to assess the penalty, the director shall ascertain whether the dealer
has continued to operate without a license or bond after being informed
by the department in writing by certified mail of the need for licensing
or bonding. Any penalties collected by the director under this section
shall be deposited in the general revenue fund to the credit of the grain
regulatory services program. In the event that a person penalized under
this section fails to pay the penalty, the director may apply to the
circuit court of Cole County for, and the court is authorized to enter,
an order enforcing the assessed penalty.

2. Each application for a license to engage in business as a grain dealer
shall be filed with the director and shall be in a form prescribed by the
director.

3. The application for an initial license may be filed at any time prior
to beginning business as a grain dealer; however, such license shall
terminate on the last day of the fifth month after the close of the grain
dealer's fiscal year, except that the initial licensing period shall be
for at least six months but not longer than eighteen months. The grain
dealer shall set forth on the original application the closing date for
his fiscal year.

4. At least sixty days prior to the expiration of each license issued by
the director under this chapter, the director shall notify the dealer of
the date of expiration and furnish the dealer with the renewal
application. The dealer shall submit the renewal application to the
director at least thirty days prior to the date of expiration of the
license. The dealer shall be penalized ten dollars per day for each day
the renewal application is submitted after the date the application for a
renewal license is due. The date of submission of the renewal application
shall be the date postmarked. Any person licensed under both the
provisions of sections 276.401 to 276.582 and sections 411.010 to
411.800, RSMo, who submits a combination warehouse-grain dealer renewal
application shall not be assessed a penalty for late renewal in excess of
ten dollars per day.

5. The original application shall be accompanied by a filing fee pursuant
to section 276.506. (L. 1980 H.B. 1627 § 3, A.L. 1986 H.B. 1578, A.L.
1997 H.B. 211)

Effective 4-2-97

In the event that the applicant has been engaged in business as
a grain dealer for at least one year, the application shall set forth the
aggregate dollar amount paid for grain purchased in Missouri and those
states with whom Missouri has entered into contracts or agreements as
authorized by section 276.566 during the last completed fiscal period of
the applicant. In the event the applicant has been engaged in business
for less than one year or has not previously engaged in business as a
grain dealer, the application shall set forth the estimated aggregate
dollar amount to be paid for grain purchased in Missouri and those states
with whom Missouri has entered into contracts or agreements as authorized
by section 276.566 during the applicant's initial fiscal period. (L. 1980
H.B. 1627 § 4)

1. All applications shall be accompanied by a true and accurate
financial statement of the applicant, prepared within six months of the
date of application, setting forth all the assets, liabilities and net
worth of the applicant. All applications shall also be accompanied by a
true and accurate statement of income and expenses for the applicant's
most recently completed fiscal year. The financial statements required by
this chapter shall be prepared in conformity with generally accepted
accounting principles; except that, the director may promulgate rules
allowing for the valuation of assets by competent appraisal.

2. The financial statement required by subsection 1 of this section shall
be audited or reviewed by a certified public accountant. The financial
statement may not be audited or reviewed by the applicant, or an employee
of the applicant, if an individual, or, if the applicant is a corporation
or partnership, by an officer, shareholder, partner, or a direct employee
of the applicant.

3. The director may require any additional information or verification
with respect to the financial resources of the applicant as he deems
necessary for the effective administration of this chapter. The director
may promulgate rules setting forth minimum standards of acceptance for
the various types of financial statements filed in accordance with the
provisions of this chapter. The director may promulgate rules requiring a
statement of retained earnings, a statement of changes in financial
position, and notes and disclosures to the financial statements for all
licensed grain dealers or all grain dealers required to be licensed. The
additional information or verification referred to herein may include,
but is not limited to, requiring that the financial statement information
be reviewed or audited in accordance with standards established by the
American Institute of Certified Public Accountants.

4. All grain dealers shall provide the director with a copy of all
financial statements and updates to financial statements utilized to
secure the bonds required by sections 276.401 to 276.582.

5. All financial statements submitted to the director for the purposes of
this chapter shall be accompanied by a certification by the applicant or
the chief executive officer of the applicant, subject to the penalty
provision set forth in subsection 4 of section 276.536, that to the best
of his knowledge and belief the financial statement accurately reflects
the financial condition of the applicant for the fiscal period covered in
the statement.

6. Any person who knowingly prepares or assists in the preparation of an
inaccurate or false financial statement which is submitted to the
director for the purposes of this chapter, or who during the course of
providing bookkeeping services or in reviewing or auditing a financial
statement which is submitted to the director for the purposes of this
chapter, becomes aware of false information in the financial statement
and does not disclose in notes accompanying the financial statements that
such false information exists, or does not disassociate himself from the
financial statements prior to submission, is guilty of a class C felony.
Additionally, such persons are liable for any damages incurred by sellers
of grain selling to a grain dealer who is licensed or allowed to maintain
his license based upon inaccuracies or falsifications contained in the
financial statement.

7. Except as set forth in section 276.511 which mandates higher
requirements for class I grain dealers, any licensed grain dealer or
applicant for a grain dealer's license who purchases less than four
hundred thousand dollars worth of grain, during the dealer's last
completed fiscal year, in the state of Missouri and those states with
whom Missouri has entered into contracts or agreements as authorized by
section 276.566 must maintain a minimum net worth equal to the greater of
ten thousand dollars or five percent of such grain purchases. If grain
purchases during the dealer's last completed fiscal year are four hundred
thousand dollars or more, the dealer must maintain a net worth equal to
the greater of twenty thousand dollars or one percent of grain purchases.
If the dealer or applicant is deficient in meeting this net worth
requirement, he must post additional bond as required in section 276.436.
(L. 1980 H.B. 1627 § 5, A.L. 1986 H.B. 1578, A.L. 1987 H.B. 751, A.L.
1997 H.B. 211)

Effective 4-2-97

1. The department shall make at least one complete examination
of each state licensed class I, class II and class III grain dealer each
year and may examine class IV, class V and class VI state licensed grain
dealers. The annual grain dealer examination for grain dealers holding a
federal warehouse license under the United States Warehouse Act may be
waived if the director is satisfied as to the quality of the audit
performed under the United States Warehouse Act and receives a full copy
of such audit.

2. Any additional examinations deemed necessary by the department during
any year shall be at the expense of the department. If upon any
examination a discrepancy is found to exist, the director may collect a
fee for that examination and for any subsequent examination deemed
necessary to insure that the discrepancy is corrected. The fee for each
such examination shall be computed in accordance with rates established
by the director by rule. This subsection applies equally to all classes
of grain dealers which may be examined by the department.

3. Any dealer may request additional examinations at the expense of the
dealer. The director may collect a fee for each special or requested
examination or for extra work beyond regular examination procedures in
connection with regularly scheduled examinations, computed in accordance
with the rates established in section 276.506.

4. Upon completion of any examination which reveals a failure to comply
with the provisions of sections 276.401 to 276.582, and the regulations
promulgated hereunder, the director or any department auditor, within a
reasonable time, shall present a written discrepancy report to the
dealer, his employee or agent. The report shall specify the areas of
noncompliance and shall give a specific period of time, reasonable and
practical under the circumstances, within which corrective action is to
be taken. A report of that corrective action shall be sent to the
director. If, after further examination, the discrepancy still exists,
the director may modify, suspend or revoke the dealer's license, or the
director may take whatever other action he deems necessary consistent
with the provisions of sections 276.401 to 276.582 until the dealer has
corrected the discrepancy.

5. The director is hereby authorized to issue subpoena duces tecum to any
financial institutions, or to any other type of business entity, causing
them to deliver any and all records of a licensee, or any and all records
kept pertaining to a licensee or any person who in the opinion of the
director may need to be licensed. Such financial institutions, or other
business entities, are hereby authorized and required to deliver any and
all such records to the director notwithstanding any law to the contrary.
This section applies to persons or individual accounts or transactions as
well as to corporate records where the licensee, or person, who in the
opinion of the director, needs to be licensed, is conducting business in
corporate form. (L. 1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

1. Every person licensed as a grain dealer shall have filed with
the director a surety bond executed and signed by the grain dealer as
principal and issued by a responsible corporate surety licensed to
execute surety bonds in the state of Missouri. It is a violation of
sections 276.401 to 276.582 for any person to engage in the business of
being a grain dealer without a sufficient surety bond on file with the
department, on a form prescribed and furnished by the director.

2. Such bond shall be in favor of the state of Missouri, except as
authorized by section 276.581, with the director as trustee for the
benefit of all persons selling grain to the grain dealer, and their legal
representatives, attorneys or assigns, and shall be conditioned upon the
following:

(1) The dealer as a buyer paying to the seller the agreed-upon purchase
price of the grain purchased from the seller where title to said grain
transferred from the seller to the buyer within the state of Missouri;

(2) The grain dealer's faithful performance of his duties as a licensed
grain dealer and his compliance with sections 276.401 to 276.582 and
regulations promulgated hereunder. This section applies to purchases made
from the effective date of the bond until the bond is canceled, except as
otherwise provided in sections 276.401 to 276.582;

(3) The bond required by this section shall cover the agreed-upon minimum
price of any valid minimum price contract;

(4) The bond required by this section shall not cover payment for any
promissory note accepted by the seller of grain. To be considered a
promissory note, the note must contain the signature of both seller and
buyer, date the note was executed, dollar amount of the note, payment
terms and interest rate.

3. A surety bond required or allowed by sections 276.401 to 276.582 shall
be effective on the date of issue, shall not be affected by the
expiration of the license period, and shall continue in full force and
effect until canceled. The continuous nature of a bond, however, shall in
no event be construed to allow the liability of the surety under a bond
to accumulate for each successive license period during which the bond is
in force, but shall be limited in the aggregate to the amount stated on
the bond or as changed, from time to time, by appropriate endorsement or
rider.

4. The required bond shall be kept in force at all times while the dealer
is conducting business as a licensed grain dealer. Failure to keep such
bond in force is cause for revocation of the license, and the dealer is
subject to the penalties provided in this chapter. No dealer may cancel
an approved bond without the prior written approval of the director and
the director's approval of a substitute bond.

5. A grain dealer filing bonds required under sections 276.401 to
276.582, or regulations promulgated thereunder who is also licensed under
chapter 411, RSMo, shall utilize the same corporate surety for all bonds
required to be licensed under chapter 411, RSMo, and as a grain dealer.

6. Upon written demand of the director for payment, the surety shall
either pay over to the director the sum demanded up to the full face
amount of the bond, or shall deposit the sum demanded in an
interest-bearing escrow account at the highest rate of interest
available. When a surety pays the director upon demand, the director
shall either interplead the sum in court or hold an administrative
hearing for the determination of the liability of the surety, and the
validity of claims against the bond, and upon the conclusion thereof, the
director shall distribute the bond proceeds accordingly. The
determination of the director shall be final, subject to the surety's or
a claimant's right to appeal to the circuit court pursuant to the
provisions of chapter 536, RSMo. Refusal or failure of the surety to pay
the sum demanded to the director within ten days of receipt of the
director's demand letter or the refusal or failure to deposit the sum
demanded in an interest-bearing escrow account at the highest rate of
interest available, shall be grounds for withdrawal of the surety's
license and authorization to conduct business in this state, and grounds
for the court to penalize the surety, for refusal to pay or to deposit
within the ten days of demand, in the amount of twenty-five percent of
the full face amount of the bond, plus interest at the rate of nine
percent, or at the rate that the director can establish he would have
received had the money been paid or deposited by the surety, whichever
rate of interest is higher. In the event that the surety pays as demanded
and the director or court determines the surety is not liable, the
director shall return to the surety the sum paid to the director plus all
accumulated interest, or any pro rata part of the sum, plus interest, as
applicable in the event of liability less than the sum demanded. In the
event that the surety elects to deposit the demanded sum in an
interest-bearing escrow account and the director holds an administrative
hearing determining the liability of the surety and the validity of
claims, and upon the exhaustion of appeals, if any, the surety
immediately shall pay to the director for distribution to claimants the
amount for which the surety has been determined to be liable plus
accumulated interest on that amount.

7. Every bond filed shall contain a provision that it may not be canceled
by the principal or surety company except upon ninety days' prior notice
in writing, by certified mail, to the director at his Jefferson City
office. In the case of a surety giving notice of cancellation, a copy of
such notice shall be mailed, by certified mail, on the same day to the
principal. The cancellation does not affect the liability accrued or
which may accrue under such bond before the expiration of the ninety
days. The notice shall contain the termination date. In the event such
notice procedures are not followed, the bond shall remain in full force
and effect until properly canceled.

8. Whenever the director receives notice from a surety that it intends to
cancel the bond of a dealer, the director shall automatically suspend the
dealer's license if a new bond is not received by the director within
thirty days of receipt of the notice of intent to cancel. If a new bond
is not received within sixty days of receipt of the notice of intent to
cancel, the director shall revoke the dealer's license. The director may
cause an inspection of the grain dealer at the end of this sixty-day
period. Such inspection may include an attempt to identify all possible
grain sellers and related claimants of the dealer by advertising for same
in local news media.

9. Verbal or written surety bond binders issued by a surety on behalf of
a grain dealer for original or replacement bonds are hereby recognized as
legally effective in the state of Missouri as if the bond were fully
executed when such binders meet the following conditions:

(1) The dealer or principal has paid, or has promised to pay, the surety
an agreed upon or tentatively agreed upon premium or other consideration;

(2) The surety provides the department, either in writing or verbally:

(a) A bond number;

(b) The amount of the bond;

(c) The effective date of the bond;

(d) Either verbal or written assurance that the person providing the
preceding information has authority to commit the surety. Such binders
may be canceled only in the manner provided in subsection 8 of this
section. The director may or may not accept such a binder depending on
the particular circumstances involved and consistent with the orderly
administration of this chapter. (L. 1980 H.B. 1627 § 6, A.L. 1986 H.B.
1578, A.L. 1997 H.B. 211)

Effective 4-2-97

1. Sections 276.401 to 276.581 and all regulations promulgated
hereunder that apply to surety bonds shall also apply to certificates of
deposit. Any certificate of deposit submitted in lieu of a surety bond
required under sections 276.401 to 276.581 shall be filed with the
director as trustee for the benefit of all persons selling grain to the
grain dealer. The certificate of deposit will be kept in the custody of
the director.

2. A grain dealer may, in lieu of the bond required under this chapter,
submit an irrevocable letter of credit, payable to the director for the
benefit of claimants, and issued by a federally or state chartered bank.
The director may refuse to accept a letter of credit in lieu of the bond
required by this chapter if the director finds that the issuing bank is
or may become insolvent, or for any other reason may be unable to honor
the terms of the letter of credit. The director may require an issuing
bank to submit evidence of its financial condition, and the director may
seek the cooperation of the division of finance in evaluating the
financial condition of an issuing bank. The director shall promulgate all
necessary regulations pertaining to certificates of deposit, and
irrevocable letters of credit.

3. Upon written demand of the director for payment, the bank shall either
pay over to the director the sum demanded, up to the full face amount of
the irrevocable letter of credit, or shall deposit the sum demanded in an
escrow account at the highest rate of interest available. When a bank
pays the director upon demand, the director shall either interplead the
sum in court or hold an administrative hearing for the determination of
the liability of the bank and the validity of the claims against the
irrevocable letter of credit, and upon the conclusion thereof, the
director shall distribute the irrevocable letter of credit proceeds
accordingly. The determination of the director shall be final, subject to
the licensee's or claimant's right to appeal to the circuit court
pursuant to the provisions of chapter 536, RSMo. Refusal or failure of
the issuing bank to pay the sum demanded to the director within three
days of the bank's receipt of such written demand shall result in a
penalty assessment of ten percent of the amount demanded, up to the full
face amount of the irrevocable letter of credit, per week until the
amount demanded and the penalty are paid. When funds have been received,
and the director or court determines that the bank is not liable for
claims against the irrevocable letter of credit, the director shall
return to the bank the sum paid to the director and all accumulated
interest earned, minus any penalties due or paid. In the event that the
liability is less than the sum demanded, the director shall return the
appropriate pro rata portion of the funds received, and interest earned
as applicable. (L. 1980 H.B. 1627 § 7, A.L. 1986 H.B. 1578, A.L. 1987
H.B. 751)

1. The total amount of the surety bond required of a dealer
licensed pursuant to sections 276.401 to 276.582 shall be established by
the director by rule, but in no event shall such bond be less than twenty
thousand dollars nor more than three hundred thousand dollars, except as
authorized by other provisions of sections 276.401 to 276.582.

2. The formula for determining the amount of bond shall be established by
the director by rule and shall be computed at a rate of no less than the
principal amount to the nearest one thousand dollars, equal to not less
than one percent and not more than five percent of the aggregate dollar
amount paid by the dealer for grain purchased in the state of Missouri
and those states with whom Missouri has entered into contracts or
agreements as authorized by section 276.566 during the dealer's last
completed fiscal year, or, in the case of a dealer who has been engaged
in business as a grain dealer for less than one year or who has not
previously engaged in such business, not less than one percent and not
more than five percent of the estimated aggregate dollar amount to be
paid by the dealer for grain purchased in the state of Missouri and those
states with whom Missouri has entered into contracts or agreements as
authorized by section 276.566 during the applicant's initial fiscal year.

3. Any licensed grain dealer or applicant who has, at any time, a net
worth less than the amount required by subsection 7 of section 276.421,
shall be required to obtain a surety bond in the amount of one thousand
dollars for each one thousand dollars or fraction thereof of the net
worth deficiency. Failure to post such additional bond is grounds for
refusal to license or the suspension or revocation of a license issued
under sections 276.401 to 276.582. This additional bond can be in
addition to or greater than or both in addition to and greater than the
maximum bond as set by this section.

4. The director may, when the question arises as to a grain dealer's
ability to pay for grain purchased, require a grain dealer to post an
additional bond in a dollar amount deemed appropriate by the director.
Such additional bond can be in addition to or greater than or both in
addition to and greater than the maximum bond as set by this section. The
director must furnish to the dealer, by certified mail, a written
statement of the reasons for requesting additional bond and the reasons
for questioning the dealer's ability to pay. Failure to post such
additional bond is a ground for modification, suspension or revocation by
the director of a license issued under sections 276.401 to 276.582. The
determination of insufficiency of a bond and of the amount of the
additional bond shall be based upon evidence presented to the director
that a dealer:

(1) Is or may be unable to meet his dollar or grain obligations as they
become due;

(2) Has acted or is acting in a way which might lead to the impairment of
his capital;

(3) As a result of his activity, inactivity, or purchasing and pricing
practices and procedures, including, but not limited to, the dealer's
deferred pricing or deferred payment practices and procedures, is or may
be unable to honor his grain purchase obligations arising out of his
dealer business. The amount of the additional bond required under this
subsection shall not exceed the amount of the dealer's current loss
position. Current loss position shall be the sum of the dealer's current
liabilities less current assets or the amount by which he is currently
unable to meet the grain purchase obligations arising out of his dealer
business.

5. One bond, cumulative as to minimum requirements, may be given where a
dealer has multiple licenses; except however, that in computing the
amount of the single bond the grain dealer may add together the total
purchases of grain of all locations to be covered thereby and use the
aggregate total purchases for the fiscal year for the purpose of
computing bond. However, this single cumulative bond must be at least
equal to twenty thousand dollars per dealer license issued up to the
three hundred thousand dollar* maximum bond amount specified in
subsection 1 of this section. When a grain dealer elects to provide a
single bond for a number of licensed locations, the total assets of all
the licensed locations shall be subject to liabilities of each individual
licensed location.

6. Failure of a grain dealer to provide and file a bond and financial
statement and to keep such bond in force shall be grounds for the
suspension or revocation, by the director, of a license issued under
sections 276.401 to 276.582.

7. A dealer shall be required to post additional surety bond when he
surpasses the estimated aggregate dollar amount to be paid for grain
purchased as set forth in subsection 2 of this section. Such additional
bond shall be determined by the director so as to effectively protect
sellers of grain dealing with such dealer. (L. 1980 H.B. 1627 § 8, A.L.
1981 H.B. 892, A.L. 1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

*Word "dollar" does not appear in original rolls.

1. Any grain dealer who is of the opinion that his net worth is
sufficient to guarantee payment for grain purchased by him may make a
formal, written request to the director that he be relieved of the
obligation of filing a bond in excess of the minimum bond of twenty
thousand dollars. Such request shall be accompanied by a financial
statement of the applicant, prepared within four months of the date of
such request and accompanied by such additional information concerning
the applicant and his finances as the director may require which may
include the request for submission of a financial statement audited by a
public accountant.

2. If such financial statement discloses a net worth equal to at least
five times the amount of the bond otherwise required by sections 276.401
to 276.582, and the director is otherwise satisfied as to the financial
ability and resources of the applicant, the director may waive that
portion of the required bond in excess of twenty thousand dollars for
each license issued. (L. 1980 H.B. 1627 § 9, A.L. 1981 H.B. 892, A.L.
1986 H.B. 1578, A.L. 1997 H.B. 211)

Effective 4-2-97

Any grain dealer whose total purchases of grain within Missouri
and those states with whom Missouri has entered into contracts or
agreements as authorized by section 276.566 during any fiscal year, do
not exceed an aggregate dollar amount of four hundred thousand dollars
may satisfy the bonding requirements of sections 276.401 to 276.581 by
filing with the director a bond at the rate of one thousand dollars for
each twenty thousand dollars or fraction thereof of the dollar amount to
be purchased, with a minimum bond of ten thousand dollars required. (L.
1980 H.B. 1627 § 10, A.L. 1986 H.B. 1578)

Effective 4-22-86

1. Upon receiving a dealer's original application for licensure,
the director may make such examination and inquiries into the applicant's
business, past business history, business reputation and may view all
information available to the extent he deems necessary to determine that:

(1) The application is sufficient;

(2) The bond filed by the applicant is sufficient;

(3) The applicant is capable of performing the services proposed;

(4) The applicant has sufficient financial resources to guarantee payment
for grain purchased;

(5) The applicant is willing and able to comply with the provisions of
sections 276.401 to 276.581 and regulations promulgated hereunder;

(6) The applicant, or, if the applicant is a corporation or partnership,
officer, majority shareholder, board member, or partner has not been
involved in improper or illegal manipulation of grain inventories and
grain purchases which involved or resulted in any losses to grain sellers
within the ten-year period of time immediately preceding the date the
director received the application.

2. If the director is not satisfied with the applicant's qualifications
as stated in this section, the application may be denied. If the
application is denied, notice shall be mailed to the applicant setting
forth the reasons for the denial of the license. Within fifteen days of
receipt of a notice of denial for license, the applicant may file a
written application with the director for a hearing on the denial. The
hearing shall be carried out in accordance with the provisions of this
chapter, regulations promulgated hereunder, and chapter 536, RSMo.

3. Licenses shall be renewed annually on the last day of the fifth month
after the close of the dealer's fiscal year.

4. A dealer making original application for license, and fulfilling all
requirements for licensing as stated in sections 276.401 to 276.581,
shall be issued a license effective from the date of application and
terminating on the last day of the fifth month after the close of the
dealer's fiscal year.

5. A dealer's license may be renewed annually by the filing of an
application on a form prescribed by the director and accompanied by a
true and accurate financial statement prepared in accordance with the
requirements for financial statements set forth in section 276.421.

6. A separate license shall be required for each location in which the
records are normally kept and from which grain payments are made for
transactions of the dealer.

7. A dealer's license is not transferable or assignable to any person,
including successors in interest to the licensee.

8. The director shall not issue a license, renew a license, or allow a
license to remain in effect if the dealer or applicant fails to:

(1) Comply with sections 276.401 to 276.581 and the regulations
promulgated pursuant to sections 276.401 to 276.581; or

(2) Pay all required fees and assessed penalties.

9. If the holder of any grain dealer's license is convicted of any
violation of sections 276.401 to 276.581, or if the director determines
that any holder of such license has violated any of the provisions of
such sections, or any of the rules and regulations adopted by the
director under the provisions of such sections, the director may at his
discretion modify, suspend, cancel, revoke, or refuse to renew the
license of the holder.

10. Whenever the director shall modify, suspend, cancel, revoke or refuse
to issue any license he shall prepare an order so providing which shall
be signed by the director or some person designated by him, and the order
shall state the reason or reasons for the modification, suspension,
cancellation, revocation or refusal to issue the license. The order shall
be sent by certified mail to the licensee or applicant at the address of
the dealer licensed or applying for a license. Within thirty days after
the mailing of the order, the licensee, if aggrieved by the order of the
director, may appeal as provided in chapter 536, RSMo. At the time of the
filing of the appeal, the party appealing shall give a bond for costs
conditioned on his prosecuting the appeal without delay and paying all
costs assessed against him. In addition, the licensee shall post a bond
which shall remain in effect pending final disposition of all appeals,
including review by the Missouri court of appeals or Missouri supreme
court, or federal review, in an amount sufficient to cover all grain
purchases and grain purchase obligations of the licensee as identified by
the director. The posting of such bond is jurisdictional to the circuit
court's authority to entertain the appeal. (L. 1980 H.B. 1627 § 11, A.L.
1986 H.B. 1578)

Effective 4-22-86

1. Each dealer shall have and conspicuously display in each of
his business locations, within full and unobstructed sight of the public:

(1) Either the original or a certified copy of the dealer license as
issued by the director;

(2) Such other materials or information as may be required by the
director.

2. Upon written request of a licensee and the payment of the proper fees
the director shall issue to the licensee a certificate that a license has
been issued or renewed as required by sections 276.401 to 276.582. The
number of such certificates shall be based upon the dealer's request and
need as shown by his application.

3. A certificate of license issued or renewed shall be posted in each
location listed on a licensee's application where he engages in the
business of a grain dealer but does not keep records pertaining to his
business or transactions as a grain dealer. In the case of a licensee
operating various grain transporting vehicles, the licensee is required
to have a certificate that the license is in effect carried in each grain
transporting vehicle used in connection with the purchase and
transporting of grain.

4. The certificate of license shall be displayed upon demand and shall
contain information as deemed necessary by the director.

5. All licenses, including, without limitation, certificates of license,
shall be and remain the property of the director and shall be subject to
revocation, cancellation or repossession, as provided by sections 276.401
to 276.582. (L. 1980 H.B. 1627 § 12, A.L. 1997 H.B. 211)

Effective 4-2-97

1. In general, a person licensed as a grain dealer shall make
payment of the agreed-upon purchase price to the seller of grain upon
delivery or demand of said seller or his authorized agent, unless a
written grain purchase contract or valid deferred payment contract shall
provide otherwise. However, every person licensed as a grain dealer shall
establish and properly document the agreed-upon purchase price of all
grain he buys as prescribed by the director or as otherwise provided by
law. When a dealer has failed to make payment upon demand of the seller
and such failure has come to the attention of the director, the director
may request the dealer to make payment. Such request may be made verbally
or in writing. The director may require the dealer to make payment with a
certified or cashier's check, or in cash. The license may be modified,
suspended or revoked if the dealer fails to make timely payment as
requested by the director.

2. A person licensed as a class I dealer shall properly document the
agreed-upon, between buyer and seller, purchase price of grain, as
prescribed by the director, and shall make payment upon demand. However,
if no demand for payment is made, a class I dealer has the option of
entering the account, as prescribed by the director, onto a formal
settlement sheet or paying the seller the agreed upon price. Such entry
onto a formal settlement sheet must occur within thirty days of delivery.
When an account is so entered onto a formal settlement sheet, payment
shall be made the earlier of demand or one hundred eighty days from
delivery. If payment is not made at the conclusion of the one hundred
eighty day period, a formal written contract as provided for in
subsections 8 and 11 of this section shall be executed.

3. A person licensed as a class II dealer shall properly document the
agreed-upon, between buyer and seller, purchase price of grain, as
prescribed by the director, and shall make payment upon demand. However,
if no demand for payment is made, a class II dealer has the option of
entering the account, as prescribed by the director, onto a formal
settlement sheet or paying the seller the agreed-upon price. Such entry
onto a formal settlement sheet must occur within thirty days of delivery.
When an account is so entered onto a formal settlement sheet, payment
shall be made on demand or within one hundred eighty days from delivery,
whichever occurs first. A class II dealer shall not enter into any type
of credit sales contract.

4. A person licensed as a class III, IV, V or VI grain dealer shall make
payment to the seller within thirty days of delivery or upon demand of
the seller or his authorized agent, whichever occurs first. A class III,
IV, V, or VI dealer shall not enter into any type of credit sales
contract.

5. Nothing contained in sections 276.401 to 276.582 shall be construed to
limit or prohibit the right of a seller of grain to make an oral demand
for payment from a dealer, provided that the right to recover under the
surety bond shall be based only upon written demand to the surety by the
seller or by the department on behalf of the claimant.

6. Recovery by a claimant on the bond shall not be his sole or exclusive
remedy and shall not bar a civil action based upon rights or obligations
arising under the grain purchase contract.

7. Notwithstanding any provisions of this section, in the case of valid
deferred price contracts the seller of grain shall have no right of
recovery under the grain dealer's surety bond. Deferred price contracts
shall be in writing, dated, and shall contain a statement informing the
seller that the seller is relinquishing title and all rights of ownership
in the grain, that the grain dealer is not required to carry bond on the
grain for the benefit of the seller, and that the payment for the grain
becomes a common claim against the grain dealer. Only a class I grain
dealer may enter into deferred price contracts.

8. In the case of deferred payment contracts, a class I grain dealer and
a seller of grain may agree that payment be deferred to a future date.
The agreement shall be in writing, dated, and shall contain a statement
informing the seller that the seller is transferring title to the buyer
and that the seller is relinquishing all rights in the grain and that the
class I dealer is required to carry bond on the grain for the benefit of
the seller for twelve months from the date the contract was entered into,
and that after twelve months, payment for the grain becomes a common
claim against the dealer. No other class of dealer may enter into
deferred payment contracts.

9. In the event the license of a grain dealer is revoked by the director
for any reason, all deferred payment agreements executed within the
twelve months prior to revocation shall be deemed priced unpaid
obligations as of the effective date of the revocation and as such
agreements are covered by the grain dealer's bond.

10. In the case of minimum price contracts, a class I grain dealer and a
seller of grain may agree upon a minimum price for the grain sold but
allow the seller to retain the ability to participate in subsequent price
gains or futures market increases, if any. The agreement shall be in
writing, dated, and shall contain a statement informing the seller that
the seller is transferring title and all rights of ownership in the grain
to the buyer, and shall contain entries stating the agreed upon minimum
price and explaining how subsequent price gains will be calculated. This
agreement shall also contain statements informing the seller that only
the payment of the specified minimum price is covered under the dealer's
bond for the benefit of the seller, for, and only for, twelve months from
the date the contract was entered; and that payment for any subsequent
price gains, if any, is not covered by bond. No other class of dealer may
enter minimum price contracts.

11. For the purposes of this section, deferred price, deferred payment,
and minimum price contracts are not deemed valid unless they contain all
the required statements and are signed by both the buyer and seller or
their authorized representatives. The director may require any additional
information from a grain dealer that he deems necessary to protect the
interests of the seller of grain in such transactions. Class II, III, IV,
V and VI grain dealers may not use or enter into such contracts with
sellers of grain. (L. 1980 H.B. 1627 § 13, A.L. 1986 H.B. 1578, A.L. 1987
H.B. 751, A.L. 1997 H.B. 211)

Effective 4-2-97

1. The grain dealer shall maintain at his principal place of
business current and complete records with respect to all grain received
and withdrawn from, purchased, sold, and held by him for that business.

2. Each licensed grain dealer shall keep in a place of safety, complete
and correct records and accounts of:

(1) The quantity of each kind and class of grain received in his facility
and withdrawn therefrom;

(2) Duplicate copy of receipts, tickets and bills of lading issued by him;

(3) Original receipts and tickets returned to and canceled by him;

(4) A register which records all grain transactions not evidenced by the
dealer's own scale ticket, i.e., direct farm-to-market shipments. This
register shall be updated daily showing, at a minimum, the name of the
seller, quantity of grain, date of shipment, name of terminal or other
business accepting the physical commodity, destination scale ticket
number and whether the grain was delivered for sale, or other specified
purpose.

3. In addition to the records required by subsections 1 and 2 of this
section, the grain dealer shall maintain such adequate financial records
as will clearly reflect his current financial position and will clearly
support any financial information required to be submitted to the
director for licensing, auditing, inspection and/or investigation
purposes.

4. A grain dealer licensed or required to be licensed under this chapter
shall keep available for examination all books, records and accounts
required by this chapter and any other books, records and accounts
relevant to his operating a grain dealer business for a period of not
less than three years after the close of the period for which such books
or records were required. An examination may be performed by the director
or his representative, and may take place at any time during the normal
business hours of the dealer or, if prior notice of the examination is
given to the grain dealer, at such time as is prescribed in that notice.
(L. 1980 H.B. 1627 § 15, A.L. 1997 H.B. 211)

Effective 4-2-97

The director may appoint auditors familiar with the purchase,
sale, and handling of grain and knowledgeable with respect to sections
276.401 to 276.581 and regulations promulgated hereunder to investigate,
audit, and inspect persons as authorized by sections 276.401 to 276.581
and the regulations promulgated hereunder. It shall be the duty of
employees of the Missouri highway patrol and weighing station employees
to cooperate with the director in the enforcement of sections 276.401 to
276.581. (L. 1980 H.B. 1627 § 16)

1. The director or any auditor appointed pursuant to the
provisions of section 276.476 may inspect the premises used by any person
licensed under sections 276.401 to 276.581, or persons who the director
has reasonable cause to believe should be licensed under sections 276.401
to 276.581, in the conduct of his business at any time. The books,
accounts, records and papers of every grain dealer shall at all times
during business hours be subject to inspection as prescribed by the
director.

2. The director may perform such inspections as are necessary for the
orderly administration of the provisions of sections 276.401 to 276.581
based upon reports and other information available to him.

3. Every person licensed under sections 276.401 to 276.581 and such
person's employees, agents, officers, partners, directors, and
shareholders shall cooperate and hold themselves available to assist in
the inspection, including allowing full and reasonable use of the
weighing, sampling, and grading equipment, if any.

4. Any dealer who is licensed in this state and who does not have a place
of business within the state shall make available and furnish to the
director or an auditor, upon request, all books, accounts, papers, and
records of grain transactions within this state at any time and place
that the director may designate.

5. Each grain dealer may also be required to make such reports as deemed
necessary by the director to protect the seller of grain as set forth in
sections 276.401 to 276.581 and the regulations promulgated hereunder.

6. The transporter of grain in transit shall have in his possession bills
of lading or other documents covering such grain in transit. Such
documents shall be available for inspection by the director or his agent
upon request.

7. The director shall, upon the verified complaint in writing of any
person setting forth facts which if proved would be in violation of the
provisions of sections 276.401 to 276.581, or regulations promulgated
hereunder or would constitute grounds for refusal, suspension, or
revocation of a license under sections 276.401 to 276.581, investigate
the actions of any person applying for, holding, or claiming to hold a
license; provided that the director is not required to investigate any
complaint which does not appear to have a reasonable basis. (L. 1980 H.B.
1627 § 17)

1. The director may apply for a restraining order or a temporary
or permanent injunction against the operation of a dealer which is in
violation of sections 276.401 to 276.582 or regulations promulgated
hereunder or in order to enforce sections 276.401 to 276.582 or such
regulations, notwithstanding the existence of other remedies at law. The
restraining order or injunction may be prosecuted by the attorney general
or the prosecuting attorney of the proper county upon request of the
director.

2. The director may apply for a restraining order or a temporary or
permanent injunction enjoining a grain dealer from disposing of any grain
owned, in whole or in part, or held or in his possession whether owned in
whole or in part, or enjoining anyone from removing any grain in which
the grain dealer or claimants from which he has purchased grain have an
interest. The restraining order or injunction may be prosecuted by the
attorney general or the prosecuting attorney of the proper county upon
request of the director.

3. The director shall have power in the conduct of any investigation or
hearing authorized or held by him to:

(1) Examine, or cause to be examined, under oath, any person;

(2) Examine, or cause to be examined, books and records of any dealer or
warehouseman;

(3) Hear such testimony and take such evidence as will assist him in the
discharge of his duties under this chapter;

(4) Administer or cause to be administered oaths;

(5) Issue subpoenas to require the attendance of witnesses and the
production of books; and

(6) Serve, or cause to be served, any subpoena, petition, or order
required for the administration of this chapter.

4. Any circuit court may, by order duly entered, require the attendance
of witnesses and the production of relevant books and records subpoenaed
by the director, and the court may compel obedience to its order by
proceedings for contempt. (L. 1980 H.B. 1627 § 18, A.L. 1997 H.B. 211)

Effective 4-2-97

1. The director may, after a hearing or upon verified complaint
filed by any person, modify, suspend or revoke the license of any person
licensed under sections 276.401 to 276.582 for the violation of or
failure to comply with the provisions of sections 276.401 to 276.582 or
regulations promulgated pursuant to sections 276.401 to 276.582.

2. Any information of a verified complaint stating the grounds for
modification, suspension or revocation shall be filed with the director.
The director shall notify the licensee of the complaint and furnish him
with a copy of the information or the complaint and a copy of the order
of the director fixing the time for a hearing, which time shall be at
least five days but not more than thirty days from the date of
notification. Such written notification may be served by personal service
on the licensee or by mailing the same by registered or certified mail to
the place of business specified by the licensee in the last application
or notification to the director.

3. If at any time the director determines that the public good requires
immediate action, and that there is reasonable cause to believe that
there exists a violation of sections 276.401 to 276.582 or regulations
promulgated pursuant hereunder, and that the nature of the violation is
such that there exists an immediate danger of loss to any claimant, the
director may, upon the filing of the information or the complaint with
the licensee, without hearing, temporarily suspend a license pending the
determination of the complaint. Such temporary suspension shall be for
not longer than ninety days. When a license is suspended without hearing,
however, the director shall grant a hearing to be held in accordance with
the provisions of sections 276.401 to 276.582 as soon thereafter as is
possible, but not later than five days after such temporary suspension.

4. At the time and place fixed in the notice, the director shall proceed
to hear the matter and any charges made, and both the licensee and
complainant shall be accorded ample opportunity to present in person or
by counsel such statement, testimony, evidence, and arguments as may be
pertinent to the matter or charges or to any defense thereto. The
director may continue such hearing from time to time.

5. Any person aggrieved by the decision of the director may appeal the
decision as provided in chapter 536, RSMo.

6. Upon revocation of a license, any claim shall be filed against the
former licensee and the surety company within one hundred twenty days
after the date of revocation. Failure to timely file such claim shall
defeat the claim for the purposes of recovery under the grain dealer's
bond. (L. 1980 H.B. 1627 § 19, A.L. 1997 H.B. 211)

Effective 4-2-97

1. When a license is revoked or expires without having been
renewed, the dealer shall terminate, in the manner prescribed by the
director, all arrangements covering the purchase, holding or sale of
grains held or controlled by the dealer. In terminating such
arrangements, the dealer shall prepare a notice in a form approved by the
director for all creditors, sellers, and purchasers, which notice shall
set forth the fact of termination and indicate the method of resolving
open engagements.

2. During the period of suspension of a license, including a temporary
suspension, the dealer may, with the approval and under the supervision
of the director or an auditor, continue to operate his dealer business.
All necessary expenses incurred by the director or his designated agents
in administering the provisions of this section may be recovered from the
dealer in a separate civil action brought by the director in the circuit
court. The director or his designated agents shall be entitled to a fee,
computed in accordance with the provisions of subdivision (4) of
subsection 1 of section 276.506, for each day or fraction thereof that he
or his agents are required to perform services in discharging the duties
imposed by this section. The cost of liability insurance necessary to
protect the director and others engaged in carrying out the provisions of
this section may also be assessed against the dealer by the court in said
suit. (L. 1980 H.B. 1627 § 20)

1. If at any time the director has evidence that a dealer is
insolvent or is unable to satisfy the claims of all sellers, the director
may petition the circuit court in the county where the dealer's principal
place of business is located, for an ex parte order authorizing the
director or his authorized agent to seize, and take title and possession,
as trustee, of any grain in the dealer's possession or under the dealer's
control, and of all pertinent records and property as provided for in
subsection 2 of this section.

2. Upon receipt of the director's verified petition setting forth the
circumstances of the dealer's failure to comply with sections 276.401 to
276.582, and further stating reasons why immediate possession by the
director or his authorized agent is necessary for the protection of grain
sellers or sureties, the court is authorized to issue an ex parte order
authorizing the director or his authorized agent to take immediate
possession for the purposes stated in this section. A copy of the
petition and order shall be sent to the dealer. If appropriate, the court
may order the director's taking possession of only grain-related assets
and not the entire business of the dealer. Such order may include, but is
not limited to, the following:

(1) The director locking down and securing, by padlocks or other
appropriate means, the grain storage bins, scales, offices, equipment and
rolling stock of the dealer;

(2) Removing and excluding the dealer, or any and all of the dealer's
employees, from the facility;

(3) Prohibiting the dealer from engaging in any grain-related business
transactions whatever during the director's possession of the
grain-related assets of the dealer's business;

(4) Authorizing all financial institutions to place all business accounts
of the dealer under the director's authority and to freeze all
transactions involving such accounts except to honor outstanding checks
written previous to the issuance of the court's order. If it appears that
the dealer has conducted, in part, his grain dealer business through the
use of personal accounts as opposed to business accounts, or intermingled
two or more such accounts, the court may authorize the applicable
financial institutions to place such personal accounts, as well as the
business accounts, under the authority of the director in order to allow
the director to accurately determine the extent of all grain-related
obligations incurred by the dealer, the correct status of same and the
dealer's resources to pay his grain-related obligations;

(5) Authorizing the director to redeliver or sell depositor or
dealer-owned grain, as appropriate in the circumstances and setting forth
the conditions for doing such;

(6) Authorizing the director to deposit all grain-related assets and
proceeds therefrom in an interest-bearing escrow account to be disbursed
only upon orders of the court;

(7) Directing the dealer to provide the director with all grain-related
business documents which come into his possession subsequent to the
director's possession of the grain-related assets, as well as any other
grain-related documents which the dealer may have knowledge of and which
are not at the dealer's facility.

3. At any time within ten days after the director or his authorized agent
takes possession, the dealer may file with the court a response to the
petition of the director stating reasons why the director or his
authorized agent should not be allowed to retain possession. The court
shall set the matter for hearing on a date not more than fifteen days
from the date of the filing of the dealer's response. The order placing
the director or his authorized agent in possession shall not be stayed
nor set aside until such time as the court, after hearing, determines
that possession should be restored to the dealer.

4. Upon taking possession, the director shall give written notice of his
action to the surety on the bond of the dealer and may notify all known
sellers as shown by the dealer's records.

5. The director or his authorized agent shall retain possession obtained
under this section until such time as the dealer or the surety on the
bond shall have satisfied the claims of all sellers, or until such time
as the director or his authorized agent is ordered by the court to
surrender possession. At no time while the director or his authorized
agent is in possession of a dealer's business, as authorized by this
section, shall the director, or his authorized agent be required to
operate the dealer's business; nor shall the director or his authorized
agent be liable for any claims which have arisen or could arise from the
nonoperation of the dealer's business.

6. If at any time, the director, whether or not he or his authorized
agent has possession as authorized by this section, has evidence that a
dealer is insolvent or is unable to satisfy the claims of all sellers,
the director may petition the circuit court for the appointment of a
receiver to operate or liquidate the business of the dealer in accordance
with law.

7. All necessary expenses incurred by the director, his authorized agents
or any receiver appointed under this section, in carrying out the
provisions of this section may be recovered from the dealer in a separate
civil action brought by the director in the circuit court or as part of
the seizure or receivership action filed under this section. If the
director or any of his authorized agents seize and take possession of the
grain, records or property at the dealer's facility, the dealer may be
assessed and shall pay as part of the necessary expenses incurred a fee
of one hundred dollars per person for each day or part thereof that each
such person performs such activities. The cost of liability insurance
necessary to protect the director, the receiver, and others engaged in
carrying out the provisions of this section, may be recovered as part of
the necessary expenses. (L. 1980 H.B. 1627 § 21, A.L. 1986 H.B. 1578,
A.L. 1997 H.B. 211)

Effective 4-2-97

1. The director shall collect fees as follows:

(1) A filing fee of twenty-five dollars for each original application for
license filed;

(2) A license fee of forty dollars for the issuance of an original or
renewal license;

(3) A fee for each special or requested examination of a grain dealer for
extra work beyond regular examination procedures in connection with
regular scheduled examinations computed as follows:

(a) Necessary personal expenses in conformance with the rules and
regulations promulgated by the commissioner of administration pursuant to
section 33.090, RSMo;

(b) A mileage allowance equal to the allowance established by the
commissioner of administration pursuant to section 33.095, RSMo;

(c) Twenty dollars for each man-hour required to complete the inspection.

2. All fees collected by the director under sections 276.401 to 276.582
shall be deposited in the general revenue fund of the state. No fees
shall be prorated.

3. Nonpayment of fees shall be grounds for refusal to issue or renew a
license or for suspension or revocation of a grain dealer's license.

4. Notwithstanding other provisions of sections 276.401 to 276.582, a
grain dealer licensed under sections 276.401 to 276.582 who is also
licensed by the state of Missouri under chapter 411, RSMo, shall not be
charged application filing fees or licensing fees authorized by sections
276.401 to 276.582. (L. 1980 H.B. 1627 § 22, A.L. 1997 H.B. 211)

Effective 4-2-97

1. For the purpose of regulation, all dealers shall be
classified according to their type of business operation.

2. Dealers that meet the requirements set forth below may be classified
as class I dealers:

(1) Each class I grain dealer must have and maintain a net worth equal to
the greater of fifty thousand dollars or two percent of grain purchases;

(2) Each class I grain dealer shall be open for business every business
day for a period of not less than six hours between the hours of 8:00
a.m. and 6:00 p.m., except as provided in subdivision (3) of this
subsection. The dealer shall keep conspicuously posted on the door of the
public entrance to his office a notice showing the hours during which the
business will be kept open, except when such business is kept open
continuously from 9:00 a.m. to 4:00 p.m.;

(3) In case the dealer's office is not to be kept open as required by
subdivision (2) of this subsection, the notice posted as prescribed in
that subdivision shall state the period during which the business is to
be closed and the name of an accessible person, with the address where he
is to be found, and the telephone number, if any, of whom shall be
authorized to pay for grain sold to such dealer business.

3. Dealers also licensed as warehousemen under chapter 411, RSMo, or
under the United States Warehouse Act that do not meet the requirements
of class I dealers are class II dealers.

(1) Each class II grain dealer shall be open for business every business
day for a period of not less than six hours between the hours of 8:00
a.m. and 6:00 p.m., except as provided in subdivision (2) of this
subsection. The dealer shall keep conspicuously posted on the door of the
public entrance to his office a notice showing the hours during which the
business will be kept open, except when such business is kept open
continuously from 9:00 a.m. to 4:00 p.m.;

(2) In case the dealer's office is not to be kept open as required by
subdivision (1) of this subsection, the notice posted as prescribed in
that subdivision shall state the period during which the business is to
be closed and the name of an accessible person, with the address where he
is to be found, and the telephone number, if any, of whom shall be
authorized to pay for grain sold to such dealer business.

4. Dealers using physical facilities, in which bulk grain may be stored
or held, in the operation of their dealer business, maintaining* an
office, and not licensed as a warehouseman under chapter 411, RSMo, or
the United States Warehouse Act, may be classified by the director as
class III grain dealers.

(1) Each class III grain dealer shall be open for business every business
day for a period of not less than six hours between the hours of 8:00
a.m. and 6:00 p.m., except as provided in subdivision (2) of this
subsection. The dealer shall keep conspicuously posted on the door of the
public entrance to his office a notice showing the hours during which the
business will be kept open, except when such business is kept open
continuously from 9:00 a.m. to 4:00 p.m.;

(2) In case the dealer's office is not to be kept open as required by
subdivision (1) of this subsection, the notice posted as prescribed in
that subdivision shall state the period during which the business is to
be closed and the name of an accessible person, with the address where he
is to be found, and the telephone number, if any, of whom shall be
authorized to pay for grain sold to such dealer business.

5. Dealers primarily engaged in the trucking or transportation business,
who incidental to or as a part of such business buy or sell grain, may be
classified by the director as class IV dealers.

6. Notwithstanding subdivision (18) of subsection 4 of section 276.401 to
the contrary, dealers whose grain transactions are only comprised of
sales of grain from their own farming operations may apply for a class V
grain dealers license.

7. All dealers who are not class I, II, III, IV or V dealers are class VI
dealers.

8. The director may establish, by rule or regulation, additional
requirements for the regulation of all classes of grain dealers. Such
rules and regulations shall not be inconsistent with the provisions of
sections 276.401 to 276.582. (L. 1980 H.B. 1627 § 23, A.L. 1986 H.B.
1578, A.L. 1997 H.B. 211)

Effective 4-2-97

*Word "maintain" appears in original rolls.

1. A scale ticket, or other document approved by the director,
shall be made out and filed for each movement of grain in or out of any
grain facility owned or operated by a dealer licensed or required to be
licensed under the provisions of this chapter. All scale tickets shall be
printed with the business name and location and consecutively numbered.
They must be issued in consecutive order. A copy of all scale tickets
shall be kept on file in numerical order in the grain dealer's office.
All other source documents for movement of grain in or out of the
facility shall be in a form approved by the director and kept and
maintained in a manner approved by the director. Any scale ticket or
other source document used in pricing grain for the purpose of sale to
the grain dealer shall have the price shown on all copies of the ticket.

2. A scale ticket issued in accordance with the provisions of this
chapter or regulations promulgated hereunder shall be considered a form
of nonnegotiable receipt. This form of nonnegotiable receipt shall be
deemed a document of title. The grain dealer's failure to complete all
entries on a scale ticket as required by this chapter and the rules
promulgated pursuant to this chapter shall constitute a violation on the
part of the grain dealer, but shall not preclude or restrict a seller's
right to receive payment for grain sold. The scale ticket or document
issued in lieu of a scale ticket shall constitute prima facie evidence of
the holder's claim for payment for the grain regardless of the degree of
compliance with this chapter with respect to completion of the entries
required by this chapter.

3. All scale tickets, or other approved documents, issued shall contain
the following information:

(1) Customer name;

(2) Date issued;

(3) Type of grain;

(4) Quantity of grain;

(5) Notation to show whether the grain movement was IN or OUT;

(6) If movement was IN, whether the grain received was for purchase by
the grain dealer, or for other specified purpose; and

(7) If received for purchase by the grain dealer, the price shall be
stated on all copies or supporting documents. (L. 1980 H.B. 1627 § 24,
A.L. 1997 H.B. 211)

Effective 4-2-97

1. All purchases of grain shall be evidenced by a grain purchase
contract.

2. The scale ticket prepared and delivered in accordance with section
276.516 may constitute a written grain purchase contract in the case of
grain purchased and priced at the time of delivery of the grain.

3. All types of grain purchase contracts shall be in a form as prescribed
by the director. (L. 1980 H.B. 1627 § 25)

1. Any person issued a license under sections 276.401 to 276.581
who is, or after the issuance of said license becomes, a nonresident of
the state of Missouri shall designate in writing the secretary of state
of the state of Missouri as his true and lawful attorney upon whom may be
served all lawful processes in any action or proceeding brought by the
director or other person growing out of the licensee's violation of any
of the terms of sections 276.401 to 276.581 or regulations promulgated
hereunder; except, any such nonresident who has designated a resident
agent upon whom process may be served as provided by law shall not be
required to designate the secretary of state as his agent. The secretary
of state shall be allowed such fees therefor as provided by law.

2. The acceptance of a dealer's license shall be signification of the
licensee's agreement that any such process against him, which is so
served, shall be of the same legal force and validity as if served upon
him personally. Such appointment shall be irrevocable and binding upon
his executor, administrator, or assigns. It shall be the duty of the
licensee to keep his current address on file with the office of the
secretary of state. The secretary of state shall forward the notice to
the person by registered mail, return receipt requested, and when said
return receipt is received the same shall be forwarded to the director.
In case the notice sent by the secretary is refused or not claimed by the
addressee, then the returned mail shall be forwarded to the director and,
in either event, the service or attempt thereof shall be sufficient
service upon the licensee. (L. 1980 H.B. 1627 § 26)

1. Upon conviction, any person who does any of the following is
guilty of a class B misdemeanor:

(1) Engaging in the business of being a grain dealer without securing a
license prior to engaging in said business. If a grain dealer has been
charged, and has paid, a penalty fee for operating without a license as
set forth in section 276.411, the grain dealer may not be charged with a
class B misdemeanor for operating without a license for the time period
covered by the penalty fee;

(2) Violating any of the provisions of sections 276.401 to 276.581;

(3) Impeding, hindering, obstructing, or otherwise preventing or
attempting to prevent the director, the director's designated
representative, employees, or any auditor in the performance of his duty
in connection with sections 276.401 to 276.581 or the regulations
promulgated pursuant thereto;

(4) On the part of any person, refusing to permit inspection of his
premises, books, accounts or records as provided in sections 276.401 to
276.581.

2. In case of a continuing violation, each day a violation occurs
constitutes a separate and distinct offense.

3. It shall be the duty of the attorney general or each prosecuting
attorney to whom any violation of sections 276.401 to 276.581 is reported
to cause appropriate proceedings under this section to be instituted and
prosecuted in a court of competent jurisdiction without delay. Before a
violation is reported for prosecution, the director may give the grain
dealer an opportunity to present his views at an informal hearing. In the
event the director determines that a prosecutor to whom a violation has
been reported has failed to institute appropriate proceedings, the
director may make a written report of the failure to institute
proceedings to the attorney general. The attorney general may investigate
the circumstances which resulted in the report. If the attorney general
determines additional proceedings are appropriate, he shall cause such
proceedings to be instituted. When the attorney general causes such a
proceeding to be instituted, he shall have all the powers and rights of
the office of the prosecuting attorney to whom the violation was
originally reported. Such powers and rights are restricted to the
prosecution of the specific case reported.

4. A grain dealer licensed or required to be licensed under sections
276.401 to 276.581, or any officer, agent, or servant of such grain
dealer who files false records, scale tickets, financial papers or
accounts with the director, or who withholds records, scale tickets,
financial papers or accounts from the director, or who alters records,
scale tickets, financial papers or accounts in order to conceal amounts
owed to sellers of grain or actual amounts of grain received and paid or
not paid for or for the purpose of in any way misleading department
auditors and officials is, upon conviction, guilty of a class C felony.

5. Any duly authorized officer or employee appointed under the provisions
of sections 276.401 to 276.581 who neglects his duty, or who knowingly or
carelessly inspects, grades, tests, or weighs any grain improperly,
conducts an inspection improperly, intentionally falsifies any inspection
report, or intentionally gives false information, or who accepts any
money or other valuable consideration, directly or indirectly, for any
neglect of duty as such duly authorized officer or employee in the
performance of his duties as such officer or employee is deemed guilty of
a class B misdemeanor. (L. 1980 H.B. 1627 § 27, A.L. 1986 H.B. 1578)

Effective 4-22-86

The director shall not, directly or indirectly, be interested in
buying or selling grain, either on his own account or for others, or in
handling grain as a grain dealer or on private account, during his term
of office; except that, the director may sell, handle, buy or store grain
in connection with his farming operation. (L. 1980 H.B. 1627 § 28)

Nothing in sections 276.401 to 276.581 shall be construed to
imply any guarantee or obligation on the part of the state of Missouri,
or any of its agencies, employees, or officials, either elective or
appointive, in respect of any agreement or undertaking to which the
provisions of sections 276.401 to 276.581 relate. (L. 1980 H.B. 1627 § 29)

1. Unless in accordance with a judicial order, and except in
accordance with other provisions of sections 276.401 to 276.581, the
director, the department, its counsel, auditors, or its other employees
or agents shall not divulge any information disclosed by the applications
or reports filed or inspections performed under the provisions of
sections 276.401 to 276.581 and regulations promulgated hereunder, except
to agents and employees of the department or to any other legal
representatives of the state or federal government otherwise empowered to
see or review such information; provided, the director may, upon written
application of any person, disclose or direct any auditor or employee of
the department to disclose any information which, in the opinion of the
director, the person applying for the same is entitled to receive.

2. The director may disclose information contained in applications,
reports, or inspections only in the form of an information summary or
profile, or statistical study based upon data provided with respect to
more than one grain dealer which does not identify the grain dealer to
which the information applies.

3. The director may, at his discretion, disclose the fact of licensing
and any other information which appears on the face of the grain dealer's
license.

4. Subject to other provisions of sections 276.401 to 276.581 this
section shall not prevent the taking of sworn testimony at a public
hearing with respect to violations of sections 276.401 to 276.581 or
regulations promulgated pursuant hereto.

5. Any duly authorized officer or employee, appointed under the
provisions of sections 276.401 to 276.581 and regulations promulgated
hereunder who violates the provisions of this section is, upon
conviction, guilty of a class B misdemeanor. (L. 1980 H.B. 1627 § 30)

All hearings provided for in sections 276.401 to 276.581 or in
regulations promulgated hereunder shall be held in accordance with the
provisions prescribed by the director. (L. 1980 H.B. 1627 § 31)

1. Upon the agreement of the director, and the known interested
parties, a hearing may be held without formal notice at such time and
place as all of the parties may agree.

2. In all disputes arising from rights or obligations under sections
276.401 to 276.581 and regulations promulgated hereunder in which all
parties are private persons and in which the director is not involved as
a party, the parties shall be afforded the opportunity to settle and
resolve such dispute prior to a hearing held pursuant to sections 276.401
to 276.581. (L. 1980 H.B. 1627 § 32)

The director is authorized and empowered to enter into contracts
and agreements necessary to cooperate with any other state to make
uniform the procedures followed in bonding, licensing and examining state
licensed grain dealers and to make available to those states with whom
Missouri has entered into such contracts and agreements the information
acquired under such bonding, licensing and examining procedures. (L. 1980
H.B. 1627 § 33)

When the director receives notice from a state with which
Missouri has a cooperative agreement under sections 276.401 to 276.581 of
the imposition of a final judgment in a civil action, criminal
conviction, or final administrative action for an act by a grain dealer
licensed in this state, which, if committed in this state would
constitute a violation of sections 276.401 to 276.581, he is authorized
to initiate such proceedings as he may deem appropriate under sections
276.401 to 276.581, either administrative or judicial, to suspend or
revoke the grain dealer's license or to enjoin such grain dealer from
operating in this state. (L. 1980 H.B. 1627 § 34)

The bonding requirements of sections 276.401 to 276.581 may be
satisfied by:

(1) Filing with the director evidence of a bond on file with any other
state with which Missouri has a cooperative agreement as provided for by
sections 276.401 to 276.581; and

(2) Such bond shall be copayable to the state of Missouri for the benefit
of sellers of grain in Missouri; and

(3) The bond shall be in an amount at least equal to the amounts required
by sections 276.401 to 276.581. (L. 1980 H.B. 1627 § 35)

Any bond required by sections 276.401 to 276.581 may be made
copayable to any state with whom Missouri has entered into contracts or
agreements as authorized by section 276.566, for the benefit of sellers
of grain in that state. (L. 1980 H.B. 1627 § 36)

1. Each grain dealer, as defined in section 276.401, shall
prominently display, at the main entrance to the building of the grain
dealer and on or about the scale of the grain dealer, if any, so that
such sign may be easily viewed by a person using the scale, a sign
containing letters of not less than one inch and not more than six inches
in height, which shall read either:

(1) "NOTICE: THIS GRAIN DEALER IS NOT LICENSED AS REQUIRED BY LAW
PURSUANT TO SECTION 276.411, RSMO"; or

(2) "NOTICE: THIS GRAIN DEALER IS LICENSED AS REQUIRED BY LAW PURSUANT TO
SECTION 276.411, RSMO".

2. Any grain dealer, as defined in section 276.401, who does not display
the sign as required by subsection 1 of this section, is guilty of a
misdemeanor, and shall be subject to a fine of up to three hundred
dollars for each day of the violation.

3. The director of the department of agriculture may refer violations of
this section and section 411.778, RSMo, to the attorney general if the
local circuit or prosecuting attorney has not acted upon violations of
this section and section 411.778, RSMo, within ninety days of notice by
the director of the department of agriculture of such violation. The
attorney general may investigate, prosecute and appoint a special
prosecuting attorney in any case which has been referred under this
subsection. (L. 1993 H.B. 822 § 1 subsecs. 5, 6, 7, A.L. 1994 H.B. 1732)

Sections 276.600 to 276.661 shall be known, and may be cited, as
the "Missouri Livestock Dealer Law". (L. 1977 H.B. 148 § 1, A.L. 1987
H.B. 368)

As used in sections 276.600 to 276.661, the following terms mean:

(1) "Agent", any person authorized to act for a livestock dealer;

(2) "Dealer transactions", any purchase, sale, or exchange of livestock
by a dealer, or agent, representative, or consignee of a dealer or person
in which any interest equitable or legal is acquired or divested whether
directly or indirectly;

(3) "Director", the director of the Missouri department of agriculture or
his designated representative;

(4) "Engaged in the business of buying, selling, or exchanging in
commerce livestock", sales and purchases of greater frequency than the
person would make in feeding operation under the normal operation of a
farm, if the person is a farmer. If the person is not a farmer he is a
dealer engaged in the business of buying, selling, or exchanging in
commerce livestock;

(5) "Livestock", cattle, swine, sheep, goats, horses and poultry, llamas,
alpaca, buffalo, and other domesticated or semidomesticated or exotic
animals;

(6) "Livestock dealer", any person engaged in the business of buying,
selling, or exchanging in commerce of livestock;

(7) "Livestock transactions", any purchase, sale or exchange of livestock
by a person, whether or not a livestock dealer, in which any interest
equitable or legal is acquired or divested whether directly or indirectly;

(8) "Official ear tag", a metal or plastic ear tag prescribed by the
director conforming to the nine character alpha-numeric national uniform
ear-tagging system;

(9) "Person", any individual, partnership, corporation, association or
other legal entity;

(10) "State veterinarian", the state veterinarian of the Missouri
department of agriculture, or his appointed agent. (L. 1987 H.B. 368,
A.L. 2005 S.B. 355)

Any person engaged in the business of buying, selling, or
exchanging in commerce livestock shall be registered annually with the
director. Registration shall be made on forms provided by the director.
(L. 1987 H.B. 368, A.L. 1989 H.B. 362)

1. If the state veterinarian has reasonable cause to believe any
livestock in this state are diseased in such a manner as to constitute a
health hazard to other livestock, wherever located, he may request in
writing the livestock sales records of any livestock dealer in this state
for the purpose of tracing or discovering the diseased livestock, the
source of the disease and all other livestock which may be affected by
the disease. A livestock dealer shall have twenty-four hours to comply
with such a request.

2. The state veterinarian may inspect, acquire and use such records only
for the detection and eradication of disease and for no other purpose.
(L. 1977 H.B. 248 § 4)

1. All penalties assessed for violations of this chapter shall
be paid to the state treasurer to be credited to the "Livestock Dealer
Law Enforcement and Administration Fund", which is hereby created. All
money credited to the livestock dealer law enforcement and administration
fund shall be for the use and benefit of the animal health division of
the department of agriculture and specified in the annual appropriations
to the department.

2. The unexpended balance in the fund at the end of each fiscal year
shall not be transferred to the general revenue fund of the state, and
the provisions of section 33.080, RSMo, relating to the transfer of funds
to the general revenue fund of the state by the state treasurer shall not
apply to this fund.

3. The state treasurer shall invest all sums in the livestock dealer law
enforcement and administration fund not needed for current operating
expenses in interest-bearing banking accounts or United States government
obligations in the manner provided by law. All yield, increment, gain,
interest or income derived from the investment of these sums shall accrue
to the benefit of, and be deposited within, the state treasury to the
credit of the livestock dealer law enforcement and administration fund.
(L. 1987 H.B. 368)

Any of the following acts or omissions by any person who is a
livestock dealer or agent thereof or other person engaged in livestock
transactions shall constitute violations of this chapter:

(1) Failure by a livestock dealer to obtain any bond required by the
Packers and Stockyard Act;

(2) Any movement of livestock by any person without accompanying proper
health certificates, proper tests for disease or identification as may be
required under the animal health statutes of Missouri or the United
States, or any rules and regulations promulgated thereunder;

(3) Failure to maintain records as required by the director;

(4) Failure to register in accordance with section 276.611. (L. 1987 H.B.
368)

The director shall exercise the following powers and duties:

(1) Promulgate such rules and regulations pursuant to section 276.406 and
chapter 536, RSMo, as he deems necessary to implement and supplement
sections 276.600 to 276.661 and provide for the orderly administration of
these sections. The senate committee on agriculture, conservation and
parks and the house committee on agribusiness shall receive copies of any
proposed rules and regulations prior to submission to the secretary of
state;

(2) Require the necessary record keeping by livestock dealers;

(3) Request the attorney general to take civil action against a livestock
dealer found to be in violation of any provision of sections 276.600 to
276.661. The circuit courts are hereby authorized to take jurisdiction of
all such actions. Any person in violation of any provision of sections
276.600 to 276.661 is subject to a penalty not to exceed ten thousand
dollars for each violation;

(4) Subpoena any record required by sections 276.600 to 276.661 or any
rule or regulation promulgated hereunder of any person operating as a
livestock dealer, or of any person acting for or on behalf of, or
providing a service to a livestock dealer;

(5) Designate representatives. (L. 1987 H.B. 368, A.L. 1993 S.B. 52)

1. The director may, upon his own motion or upon verified
complaint in writing of any person, investigate the actions of any
livestock dealer or other person engaging in livestock transactions. If
such person is found to be in violation of any provision of sections
276.600 to 276.661, the director may summon same to a hearing which shall
be set no later than twenty business days from the date of the summons.
At any time after the summons is issued, the director may apply to the
circuit court in the county in which the livestock dealer resides, or, if
a nonresident, in Cole County, and the court shall be authorized to enter
an order barring further purchases or sales of livestock. Such order
shall remain in effect until the administrative hearing provided for in
this section shall be had.

2. At the hearing, the livestock dealer or other person engaging in
livestock transactions and the state shall have the opportunity to
present in person or by counsel such statements, testimony, evidence and
argument as may be pertinent to the charges or to any defense. The
director may subpoena any persons or documents incident to the hearing,
may take testimony orally, by deposition or by exhibit, in the same
manner and with the same fees and mileage as prescribed in judicial
proceedings in civil cases. The director or his designated representative
may also administer oaths to those giving evidence. Following the
hearing, the director may:

(1) Assess a penalty upon such livestock dealer or other person engaging
in livestock transactions in an amount not to exceed ten thousand dollars
for each violation of sections 276.600 to 276.661; or

(2) Dismiss the case.

3. Any person aggrieved by a decision of the director after a hearing
pursuant to this section may appeal to the circuit court. (L. 1987 H.B.
368, A.L. 1989 H.B. 362)

Every livestock dealer and any agent of any livestock dealer
shall maintain written records of sales and purchase transactions and
other information relating thereto, as shall be established by rule or
regulation promulgated under the provisions of sections 276.600 to
276.661. (L. 1987 H.B. 368)

If any livestock dealer fails or refuses to comply with the
provisions of sections 276.600 to 276.661, the director may subpoena such
person and all livestock sales and purchase records. Upon refusal of any
person to comply with any such subpoena, the director may petition the
circuit court having venue for an order enforcing such subpoena. Upon
failure of any person to obey a court order enforcing the director's
subpoena, the court issuing such order shall find that person in contempt
and punish him as provided by law. For purposes of this section venue
shall be in the circuit court of any county in which the livestock dealer
regularly purchases or sells any livestock. (L. 1987 H.B. 368)

The director, on determining that any person may have violated
any provision of sections 276.600 to 276.661, may petition for injunctive
relief from further violation. Such petition shall be addressed to the
circuit court in the county in which the offense occurred or in which the
offender has his principal place of business or is doing business or
resides. The court, on determining that there is probable cause that a
violation of sections 276.600 to 276.661 exists, shall issue appropriate
injunctive relief. (L. 1987 H.B. 368)

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