As used in ORS
586.210 to 586.730, unless the context requires otherwise:
(1) "Department" means the State Department of Agriculture.
(2) "Grain" means wheat, corn, oats, barley, rye, flaxseed,
soybeans, grain sorghum, dry beans and peas and any other grain for which
standards are established by the state or the federal government.
(3) "Handling" includes receiving and loading out grain tendered
for storage.
(4) "Public terminal warehouse" means any public warehouse located
in a city of this state designated as an inspection point by the
department.
(5) "Public warehouse" includes any elevator, mill, warehouse or
other structure in which grain is received from one or more members of
the public for storage or handling for compensation.
(6) "Warehouseman" includes any person, existing legal entity or
municipality owning, operating or controlling any public warehouse.
[Amended by 1955 c.731 §1; 1959 c.195 §1; 1961 c.445 §1; 1967 c.492 §1;
1969 c.190 §1; 2001 c.66 §1]
(1) The
provisions of ORS 586.210 to 586.561 do not apply to any public warehouse
or other facility where the owner or operator thereof only receives grain:
(a) The owner or operator has purchased or has agreed to purchase,
(b) For processing or cleaning for the owner of the grain,
(c) For such purposes other than storage or handling as the State
Department of Agriculture may by rule prescribe,if the records of the owner or operator include such written evidence as
the department requires, furnished on or before delivery of the grain by
the owner or the authorized agent of the owner, clearly showing that the
grain was left or deposited for one or more of the purposes set forth in
this subsection.
(2) Grain left or deposited with an owner or operator whose records
do not clearly include the evidence showing such grain was only left or
deposited for one or more purposes as required by subsection (1) of this
section, must be considered by the department to be grain deposited for
storage and handling pursuant to ORS 586.210 to 586.561. Such owner or
operator and the warehouse or other facility of the owner or operator
where grain is received, are subject to all provisions of ORS 586.210 to
586.561 during the license period. [1969 c.190 §2b](1) The State
Department of Agriculture shall have the power to inspect public
warehouses. The department shall investigate all complaints of fraud or
injustice in the operation of public warehouses and the business
practices of warehousemen licensed by the department and make all
necessary rules and regulations for carrying out and enforcing the
provisions of ORS 586.210 to 586.730.
(2) If sufficient funds are available, the department annually
shall inspect at reasonable times any warehouse or storage facility where
grain is stored, handled or received and any records kept by the owner or
person in control of such warehouse or storage facility and pertaining to
the operation thereof, in order to determine whether or not such facility
should be licensed pursuant to this chapter. [Amended by 1955 c.731 §2;
1959 c.195 §2; 1961 c.445 §2; 1997 c.608 §4] The
Director of Agriculture may enter into cooperative agreements with
approved warehouse examination programs provided by state governments of
contiguous states to perform warehouse examinations of merged code
facilities domiciled in these contiguous states. [1997 c.608 §6]Note: 586.235 was added to and made a part of 586.210 to 586.730 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.
(1) No officer, employee, inspector,
sampler or weigher of the State Department of Agriculture shall:
(a) Be guilty of any neglect of duty.
(b) Knowingly or carelessly inspect, sample or weigh any grain,
grain products, hay or other commodities improperly.
(c) Directly or indirectly accept any money or other consideration
for any neglect of duty or any improper performance of duty as such
officer, employee, inspector, sampler or weigher.
(2) No person shall improperly influence or attempt to improperly
influence any officer, employee, inspector, sampler or weigher of the
department in the performance of duties as such officer, employee,
inspector, sampler or weigher.
(1) Every person operating any public warehouse in this state
shall, before July 1 of each year, procure from the State Department of
Agriculture a license for each such warehouse so operated for the ensuing
year, before transacting business at such public warehouse; but the
holder of a license to store grain under the United States Warehouse Act
shall furnish the department with a copy of such license and bond and,
having furnished such copies, is not required to secure a state license
or pay state warehouse inspection fees during the time the license holder
continues to operate under the federal license. The license shall be
posted in a conspicuous place in the office of each warehouse.
(2) Application for a license under this section shall be made to
the department upon forms furnished by it. The application shall include:
(a) The name and address of the applicant.
(b) The location of each public warehouse of the applicant.
(c) The total rated storage capacity in bushels of each public
warehouse.
(d) The tariff schedule of charges to be made at each public
warehouse for the handling, storage and shipment of grain during the
license year.
(e) Documentation satisfactory to the department that the applicant
has net assets of at least $50,000.
(f) Such other information as the department deems necessary to
carry out the purposes of ORS 586.210 to 586.730.
(3) The applicant shall submit with the application an annual
license fee of $500 for each public warehouse.
(4) The department shall issue a license to the applicant if it
finds that the application is in due form and the applicant has complied
with the provisions of ORS 586.210 to 586.730. [Amended by 1955 c.731 §3;
1967 c.492 §2; 1969 c.190 §2; 1981 c.204 §1; 1997 c.608 §2; 2001 c.66 §2] Subject to the
provisions of ORS chapter 183, upon determining that any person licensed
under this chapter, or who has applied for a license under ORS 586.270,
has violated or failed to comply with any of the provisions of this
chapter or any of the rules and regulations of the State Department of
Agriculture made under this chapter, or that such person has failed to
place and keep the premises, where the person conducts the licensed
business, in the manner required under this chapter, the department may
revoke such person's license or refuse to issue a license to such person.
[1957 c.11 §2; 1961 c.425 §6; 1961 c.445 §5; 1971 c.734 §89](1) No person operating a public
warehouse within this state shall issue any negotiable grain warehouse
receipt for grain for storage purposes unless the person is at the time
licensed so to do, either by the State Department of Agriculture or by
the United States Department of Agriculture.
(2) No person shall operate a public warehouse in this state
without a license under ORS 586.210 to 586.730. [Amended by 1955 c.731 §4] The State
Department of Agriculture may apply for, and the circuit courts of this
state hereby are vested with jurisdiction to issue, a temporary or
permanent injunction against the operation by any person of a public
warehouse without a license if such license is required by ORS 586.210 to
586.730. The remedy conferred by this section is in addition to any other
remedy provided by law. [1955 c.731 §8 (enacted in lieu of 586.320); 1971
c.418 §17] (1) Every warehouseman
operating a public warehouse licensed and bonded under ORS 586.210 to
586.730 shall post at or near the main entrance to the warehouse a sign
to be furnished by the State Department of Agriculture of such design as
the department directs, having thereon the words, "Oregon Bonded Grain
Warehouse." It is unlawful to permit such sign or any sign of similar
appearance or bearing the same words, or words of similar import, to
remain during any time that the warehouse is not duly and regularly
licensed or bonded under ORS 586.210 to 586.730.
(2) When any such license expires or is revoked and a new license
from the department has not yet been issued, or if the full amount of the
bond required has not been filed and approved, then the warehouseman
immediately shall:
(a) Remove the sign.
(b) Discontinue operation of the business as a public warehouse.
(c) Place and maintain for at least one year at the main entrance
to the warehouse a sign of such dimensions and other specifications as
prescribed by the department and having thereon the words, "This is Not a
Licensed or Bonded Grain Warehouse." [Amended by 1955 c.731 §5; 1959
c.195 §3] A public
warehouse shall be maintained in a manner adequate to provide suitable,
sanitary and safe storage of the particular product or commodity stored
therein. [1957 c.11 §6; 1957 c.314 §4](1)(a) Each
warehouseman operating a public warehouse required to be licensed under
ORS 586.210 to 586.730 shall, on or before July 1 of each year, give a
bond to the State of Oregon executed by the warehouseman as principal and
by a corporate surety licensed to do business in this state as surety.
(b) The bond for each warehouseman who elects to provide to the
State Department of Agriculture a financial statement or audit
satisfactory to the department shall be not less than $20,000 nor more
than $200,000, as conforms with a schedule to be established by the
department. Such schedule shall be based upon a number of cents, varying
from 8 to 15, multiplied by the number of bushels of rated grain storage
capacity of the public warehouse furnishing the bond. The department
shall determine the rate between 8 and 15 cents and fix the amount of the
bond with reference to the market value of the commodity found or
expected by the warehouseman to preponderate in storage in the warehouse
of the warehouseman. In so doing, the department shall take into
consideration, but not be limited by, the coverage requirements of
lending agencies. The bond of a public warehouse when first licensed
shall conform with the value of commodities expected in storage.
(c) For all warehousemen who fail to provide the financial
statement or audit referred to in paragraph (b) of this subsection, the
amount of the bond shall be determined by multiplying 20 cents times the
number of bushels of rated grain storage capacity of the public warehouse
furnishing the bond. The amount of the bond shall be not less than
$20,000 nor more than $500,000. In lieu of a surety bond, the
warehouseman may submit a letter of credit or securities satisfactory to
the State Department of Agriculture.
(2) The bond must be approved by the department and shall be
conditioned upon faithful performance by the warehouseman of the acts and
duties enjoined by law upon the warehouseman as a warehouseman, and such
further obligations as a warehouseman as the warehouseman may lawfully
assume under contracts with depositors of grain in the warehouse of the
warehouseman. The liability of the surety upon such bond is limited to
the amount specified in the bond.
(3) The warehouseman may give a single bond meeting the
requirements of ORS 586.210 to 586.730, and all public warehouses
operated by the warehouseman shall be deemed as one public warehouse for
the purpose of the bond required under such sections.
(4) If a bond has been filed with, and approved by, the Department
of Agriculture of the United States, as required by the United States
Warehouse Act, then such bond shall be considered as in lieu of the bond
required by this section, if:
(a) Satisfactory proof of the filing and approval of the bond is
filed with the department;
(b) The department is satisfied with the form of the bond;
(c) The surety is a corporation authorized to do business as a
surety in this state; and
(d) The bond meets the other requirements of ORS 586.210 to 586.730.
(5) The department may require the filing of an additional bond or
bonds, within the limit stated in subsection (1) of this section, when it
has knowledge of the principal's methods of conducting business or of
conditions affecting such business that, in the department's judgment,
make such increase advisable for the protection of holders of the bonded
public warehouse's receipts or load slips.
(6) Notwithstanding ORS chapter 183, the license of a warehouseman
shall be automatically suspended for failure at any time to have or to
maintain a bond in the amount and type required by this chapter. The
department shall not remove the suspension or issue a license as the case
may be, until it is satisfied the required bond has been obtained.
[Amended by 1955 c.731 §6; 1959 c.195 §4; 1961 c.445 §8; 1997 c.608 §1](1) Except as provided in subsection (2) of this
section, grain in storage in a public warehouse or public terminal
warehouse shall be kept fully insured by the warehouseman for the current
market value of such grain against loss by fire, lightning, inherent
explosion, windstorm, cyclone and tornado. Evidence of such insurance
coverage in the form of a certificate of insurance approved by the State
Department of Agriculture shall be filed with the department at the time
of making application for an annual license to operate a public warehouse
as required by this chapter. The department shall not issue a license
until such certificate of insurance is received.
(2) Any person depositing or storing grain who does not wish to
have the grain of the person insured by a warehouseman, as required by
subsection (1) of this section, may relieve the warehouseman of that duty
and the provisions of this section, by notifying the warehouseman in
writing that the person does not wish the grain of the person insured. If
such notice specifies a definite period during which such grain shall not
be insured, the warehouseman shall keep such notice in the files of the
warehouseman for at least two years after such period ends. If no period
is mentioned and the notice covers all grain which has been or may
thereafter be deposited or stored with such warehouseman, then the
warehouseman shall retain such notice for at least two years after all
grain has been removed by the person giving such notice.
(3) Notwithstanding the provisions of ORS 586.275, when the
provisions of this section are violated, the department shall immediately
suspend the license of the warehouseman. The suspension shall remain in
effect until there has been compliance with this section. The provisions
of this subsection shall supersede any inconsistent provisions in ORS
chapter 183. [1959 c.195 §6; 1961 c.425 §7] All charges
made by any warehouseman subject to the provisions of ORS 586.210 to
586.730, for the handling or storage of grain shall be just, fair and
reasonable; and the State Department of Agriculture, upon the complaint
of any person interested or by inquiry upon its own motion, after a full
hearing, may:
(1) Declare any existing charge for the handling or storage of
grain or any regulation whatsoever affecting such charge, or the receipt,
handling or storage, to be unreasonable or unjust; and
(2) Declare and order what is a just and reasonable charge or
regulation to be imposed or enforced in place of that found to be
unreasonable or unjust. [Amended by 1955 c.731 §9]Every warehouseman shall annually, during the first week in
July, publish by posting in a conspicuous place in the public warehouse
of the warehouseman, a schedule of grain storage and handling rates for
the ensuing year. The schedule shall be kept posted in a conspicuous
place in the public warehouse. The rates shall not be changed during such
year. No discrimination in rates shall be made by any warehouseman.
[Amended by 1955 c.731 §10] No
warehouseman subject to the provisions of ORS 586.210 to 586.730 shall:
(1) Directly or indirectly, by any special charge, rebate, drawback
or other device, demand, collect or receive from any person a greater or
lesser compensation for any service rendered or to be rendered in the
handling or storage of grain than the warehouseman demands, collects or
receives from any other person for doing for the person a like and
contemporaneous service in the handling or storage of grain under
substantially similar circumstances or conditions.
(2) Make or give any undue or unreasonable preference or advantage
to any person in any respect whatsoever.
(3) Subject any particular person to any undue or unreasonable
prejudice or disadvantage in any respect whatsoever. [Amended by 1955
c.731 §11](1) Every warehouseman shall receive for storage and handling, as the
capacity of the public warehouse of the warehouseman will permit, all
grain in a public warehouse licensed for such purpose, in suitable
condition for storage, tendered the warehouseman in the usual course of
business, without discrimination of any kind. However, a warehouseman may
reserve adequate storage space for local producer customers.
(2) Every warehouseman receiving grain for storage or handling
shall issue to every person delivering the grain to the warehouseman a
load slip which shall contain thereon the actual weight of each draft of
the grain and the tare, if any, and other information required by the
State Department of Agriculture, immediately upon receipt of each load or
parcel of grain. The warehouseman receiving grain for storage or handling
shall within 10 days after demand, issue and deliver to the owner of the
grain, or the representative of the owner, a negotiable or nonnegotiable
grain warehouse receipt in form prescribed by the department, unless
exempted by ORS 586.380 (3). [Amended by 1955 c.731 §12; 1961 c.445 §9;
1991 c.894 §2] (1) The
State Department of Agriculture shall cause to be printed, bound and
delivered to each person operating a public warehouse a sufficient number
of blank negotiable and nonnegotiable grain warehouse receipts, in such
form and as prescribed by the department, required to carry on the
business of such public warehouse when needed. No person shall use such
forms for any purpose other than in connection with receipt of grain for
storage or handling.
(2) Every person intending to operate a public warehouse shall file
with the department for that purpose a requisition for such number of
negotiable and nonnegotiable grain warehouse receipts as may be required
for the operation of such public warehouse during the ensuing license
year, specifying:
(a) The name of the warehouseman intending to operate such public
warehouse.
(b) The state number of the public warehouse, or the respective
numbers of the public warehouses, intended to be operated.
(c) The respective quantities of blank forms of receipts required
for each public warehouse.
(d) The place where each public warehouse, respectively, is located.
(e) The location of the principal place of business of the
warehouseman operating such public warehouse or warehouses.
(f) The rate of handling and storage charges at such public
warehouse, or each of such warehouses, respectively.
(g) Such other information as may be required by the department,
specified in the blank form of requisition.
(3) All receipt forms shall state thereon the amount of cash or
other advances made by the warehouseman to the depositor of grain.
(4) Payment for such receipts shall be made in advance. Every such
warehouseman may file requisitions for additional receipts from time to
time as the warehouseman requires. [Amended by 1955 c.731 §13; 1961 c.445
§10] (1) It is
unlawful to issue negotiable or nonnegotiable grain warehouse receipts
other than those furnished by the State Department of Agriculture and
such receipts shall be issued consecutively as numbered and dated with
the true and correct date on which each receipt is actually issued. It is
unlawful to print or have in possession for the purpose of issuance under
ORS 586.210 to 586.730, any negotiable or nonnegotiable grain warehouse
receipt blanks intended for use under the provisions of those sections
other than those authorized to be printed or other than those furnished
by the department.
(2) Nothing in ORS 586.210 to 586.730 shall be construed to prevent
the issuance of nonnegotiable load slips or other nonnegotiable evidence
of similar nature showing when and what quantities of grain were received
or the condition thereof upon delivery.
(3) Warehouses operated under the United States Warehouse Act, are
exempted from the use of receipts furnished by the department. [Amended
by 1955 c.731 §14; 1961 c.445 §11; 1969 c.190 §7] (1) A warehouseman
operating another business in conjunction with, or in proximity to, the
licensed public warehouse of the warehouseman shall keep a complete set
of records for the warehouse business, entirely separate and distinct
from the accounts and records of any other business. Deposits of grain
for the account of such other business, or for grain owned by the
warehouseman, shall be entered in the books of the warehouse in the same
manner as those of other depositors.
(2) No sale of grain by a warehouseman for future delivery, made
when grain is not in storage in the warehouse, shall be deemed a
transaction to which this chapter is applicable, nor shall such
transaction be entered in the warehouse records as a storage obligation
until the grain is placed in the public warehouse. When such grain is
received and deposited to an account of a purchaser, the warehouseman
shall immediately issue and deliver to the purchaser a negotiable or
nonnegotiable warehouse receipt therefor.
(3) When grain in storage, not covered by an outstanding warehouse
receipt, is purchased from one depositor and title passed to a new owner,
the warehouseman shall immediately issue and deliver to such new owner a
negotiable or nonnegotiable warehouse receipt therefor. [1961 c.445 §7](1) No warehouseman shall issue a receipt for grain not known by
the warehouseman to be in the public warehouse of the warehouseman.
(2) When partial withdrawal of the grain of the depositor is made
by a depositor, the warehouseman shall make appropriate notation thereof
on the depositor's nonnegotiable receipt and on other records as
prescribed by the State Department of Agriculture, or, if the
warehouseman has theretofore issued a negotiable receipt to the
depositor, the warehouseman shall claim, cancel and replace it with a
negotiable receipt showing the amount of such depositor's grain remaining
in the public warehouse.
(3) A nonnegotiable receipt shall have plainly lettered upon the
face thereof, "Not Negotiable" or "Nonnegotiable."
(4) For failure of the warehouseman to claim and cancel, on
delivery by grain stored in the public warehouse of the warehouseman, a
negotiable receipt therefor issued by the warehouseman, the negotiation
of which would transfer the right to possession of such grain, a
warehouseman shall be liable to any one who purchases such receipt for
value and in good faith, for failure to deliver to the purchaser all the
grain specified in the receipt, whether such purchaser acquired title to
the negotiable receipt before or after delivery of any part of the grain
by the warehouseman. [1961 c.445 §13](1) A warehouseman shall be liable for any loss
or injury to the grain in the public warehouse of the warehouseman caused
by the failure of the warehouseman to exercise such care in regard to it
as a reasonably careful person would exercise in regard to similar grain
of the person's own.
(2)(a) If a warehouseman discovers that as a result of a quality or
condition of certain grain placed in the public warehouse of the
warehouseman, of which the warehouseman had no notice at the time of
deposit, such grain is a hazard to other grain or to persons or to the
public warehouse, and if it is not immediately removed by the owners at
the request of the warehouseman, the warehouseman may sell the grain at
public or private sale without advertisement but with reasonable
notification to all persons known to claim an interest in the grain. If
the warehouseman after a reasonable effort is unable to sell the grain,
the warehouseman may dispose of it in any other lawful manner and shall
incur no liability by reason of such disposition.
(b) At any time prior to sale or disposition as authorized in this
section, the warehouseman shall deliver the grain to any person entitled
to it, upon proper demand and payment of charges.
(c) From the proceeds of sale or other disposition of the grain the
warehouseman may satisfy the charges of the warehouseman for which
otherwise the warehouseman would have a lien, and shall hold the balance
thereof for delivery on the demand of any person to whom the warehouseman
would have been required to deliver the grain. [1961 c.445 §14](1) Except as otherwise provided in subsection
(2) of this section, the duty of a warehouseman receiving grain for
storage or shipment in a public warehouse operated by the warehouseman
shall be governed by the provisions of ORS 77.4030.
(2) A warehouseman's duty to deliver grain is fulfilled if delivery
is made to the several owners in the order of demand as rapidly as it can
be done by ordinary diligence; where delivery is made within 48 hours
after facilities for receiving the grain are provided, such delivery is
deemed to comply with this subsection.
(3) No warehouseman shall fail to deliver grain as provided in this
section.
(4) In addition to being subject to penalties under ORS 586.990 for
violation of subsection (3) of this section, if a warehouseman fails to
deliver grain as provided in this section, the person entitled to
delivery of the grain may maintain an action against the warehouseman for
any damages resulting from the warehouseman's failure to deliver. In any
such action the person entitled to delivery of the grain has the option
to seek recovery of actual damages or of liquidated damages of one cent
per bushel for each day's delay. [Amended by 1955 c.731 §15; 1961 c.726
§420]Owners of negotiable grain warehouse receipts surrendered
for shipment of grain or of grain in a public warehouse for which load
slips only are furnished shall furnish the warehouseman with written
instructions regarding the capacity of cars to be ordered from the
transportation company and as to the manner of loading and billing
shipments made in such cars as are furnished by the transportation
company. The warehouseman shall load and bill all such shipments in exact
accordance with instructions given, and is liable to the owner of the
receipt so surrendered or of the grain for which load slips only are
furnished for the amount of any excess freight paid, or for other damages
suffered, by the owner of the receipt or grain resulting from the failure
of the warehouseman to follow exactly the loading and billing
instructions as given the warehouseman. [Amended by 1955 c.731 §16]No warehouseman shall sell, encumber,
ship, transfer or in any manner remove or permit to be shipped,
transferred or removed from a warehouse any grain received by the
warehouseman for deposit or handling, without the written approval of the
holder of the warehouse receipt or load slip. [1961 c.445 §16]
(1) Upon the request of any person or persons having an interest in grain
stored in any public warehouse and upon payment of $25 in advance, the
State Department of Agriculture shall cause such warehouse to be
inspected and shall cause to be checked the outstanding negotiable grain
warehouse receipts and load slips which have not been superseded by
negotiable grain warehouse receipts with the grain on hand and shall
report the amount of receipts and load slips outstanding and the amount
of storage, if any. If the cost of the examination is less than $25 the
excess shall be returned to the person making the payment, and if the
cost of the examination is more than $25 the person or persons having an
interest in the grain stored in any such warehouse, and requesting such
examination, shall pay the additional cost to the department.
(2) The department may cause every such warehouse and business
thereof and the mode of conducting the warehouse to be inspected by one
or more of its officers, employees or inspectors whenever deemed proper.
A public warehouse shall be maintained in a manner adequate to provide
convenient and safe means of ingress and egress to the various storage
bins and compartments by those persons authorized to make inspections.
The warehouseman shall cooperate with the department in any inspection of
the warehouse or warehouse records and shall assist the department in
every reasonable manner in any of such inspections.
(3) The property, books, records, accounts, papers and proceedings
of every such warehouseman shall at all times during the business hours
be subject to such inspection by the department. The warehouseman shall
maintain adequate records and systems for the filing and accounting of
warehouse receipts, canceled warehouse receipts, load slips, other
documents and transactions necessary or common to the warehouse industry.
Canceled warehouse receipts, copies of load slips and other copies of
documents evidencing ownership or ownership liability shall be retained
by the warehouseman for a period of at least three years from date of
cancellation. [Amended by 1955 c.731 §17; 1957 c.11 §5; 1957 c.314 §2;
1969 c.190 §4; 1981 c.204 §2](1) Whenever it appears
probable after investigation that a licensed warehouseman has not in
possession sufficient grain to cover the outstanding warehouse receipts,
load slips or other evidence of storage liability issued or assumed by
the warehouseman, or when such warehouseman refuses to submit books,
papers or property to lawful inspection, the State Department of
Agriculture may give notice to the warehouseman to comply with all or any
of the following requirements:
(a) Cover such shortage.
(b) Give additional bond.
(c) Submit to such inspection as the department may deem necessary.
(2) If such warehouseman fails to comply with the terms of such
notice within 24 hours from the date of its issuance, or within such
further time as the department may allow, the department, represented by
the Attorney General or the district attorney of the county in which the
warehouse is located, shall apply to the circuit court of such county for
an order:
(a) Authorizing the department to take possession of all special
piles and special bins of grain and all commingled grain in the public
warehouse or warehouses owned, operated or controlled by the
warehouseman, and of all books, papers and property of all kinds used in
connection with the conduct or the operation of such warehouseman's
warehouse business, whether such books, papers, records and property
pertain specifically, exclusively, directly or indirectly to that
business, or are related to the handling, storage or use of grain of the
warehouseman in any other business; and
(b) Enjoining the warehouseman from interfering with the department
in the discharge of its duties as required by this section.
(3) Upon taking possession the department shall give written notice
of its action to the surety on the bond of the warehouseman and may
notify the holders of all warehouse receipts or other evidence of
deposits issued for grain, to present their warehouse receipts or other
evidence of deposits, for inspection, or to account for the same. The
department may thereupon cause an audit to be made of the affairs of such
public warehouse with respect to the grain in which there is an apparent
shortage, determine the amount of such shortage and compute the shortage
as to each depositor of grain. The department shall notify the
warehouseman and the surety on the bond of the warehouseman of the amount
of such shortage and notify each depositor thereby affected.
(4) The department shall retain possession of the grain in the
warehouse or warehouses, and of the books, papers and property of the
warehouseman, until such time as the warehouseman or the surety on the
bond shall have satisfied the claims of all holders of warehouse receipts
or other evidence of deposits, or, in case the shortage exceeds the
amount of the bond, the surety on the bond shall have satisfied such
claims pro rata, or until such time as the department is ordered by the
court to surrender possession.
(5) If during or after the audit provided for in this section, or
at any other time the department is of the opinion that the warehouseman
is insolvent or in danger of becoming so or is unable to satisfy the
claims of all holders of warehouse receipts or other evidence of
deposits, the department, represented by the Attorney General or the
district attorney of the county in which the public warehouse is located,
may petition the circuit court of such county for the appointment of a
receiver to operate or liquidate the business of the warehouseman in
accordance with law.
(6) At any time within 10 days after the department takes
possession of any grain, or the books, papers and property of any
licensed grain warehouse, the warehouseman may serve notice upon the
department to appear in the circuit court of the county in which such
warehouse is located, at a time to be fixed by such court, which shall be
not less than five, nor more than 15 days from the date of the service of
such notice, and show cause why such grain, books, papers and property
should not be restored to the possession of the warehouseman.
(7) All expenses incurred by the department in carrying out the
provisions of this section shall be a first charge and lien upon the
assets of the warehouseman, and may be recovered in a separate civil
action brought by the department, represented by the Attorney General or
the district attorney, in the circuit court of the county in which the
public warehouse is located, or recovered at the same time and as a part
of the action filed under this section.
(8) As a part of the expenses so incurred, the department or the
receiver is authorized to include the cost of adequate liability
insurance necessary to protect the department, its officers and others
engaged in carrying out the provisions of this section.
(9) Nothing in this section shall be construed as a waiver by the
State of Oregon of any immunity against suit or action. [1957 c.11 §3;
1961 c.445 §17] (1)
If the State Department of Agriculture considers the appointment of a
receiver or other action provided by ORS 586.525 inadvisable or
inexpedient in the case of depositors of grain in a public warehouse
operated by a warehouseman who is in default as to any condition of bond,
it may obtain settlement for such depositors as provided in this section.
(2) The department shall:
(a) Give reasonable notice to persons holding warehouse receipts or
other evidence of deposit issued by the defaulting warehouseman, to file
claims with the department.
(b) Fix a reasonable time within which such filing shall be done.
(c) Investigate each claim so filed and reasonably verify the
circumstances under which the claims accrued and the good faith of the
claimants.
(3) With the approval of the claimants who filed claims, the
department may settle such claims with the surety without filing legal
action. Such settlement unless appealed to the circuit court within 30
days as provided by law, is final between the surety and all claimants
covered by the bond.
(4) If any claimant or the surety does not agree with the findings
of the department, the department shall file a declaratory judgment
action without right to jury trial in the circuit court in the name of
the State of Oregon for the benefit of the claimants as authorized by ORS
chapter 28. Unless appealed as prescribed by law, the order of the court
shall be final between the surety and all claimants covered by the bond.
[1961 c.445 §19; 1979 c.284 §177]
(1) An employee of the State Department of Agriculture may be appointed
receiver if the court is unable, or deems it inadvisable, to obtain the
services of another qualified person to accept the position as authorized
by ORS 586.525. If a person other than an employee of the department is
appointed a receiver and if at any time it is apparent to the court that
there is or may be insufficient assets from which to make reasonable
payment for expenses or services rendered or to be rendered, the
department is authorized with the approval of the court from funds
received under this chapter, to make payment to such receiver for
services rendered or expenses incurred thereunder of a total amount not
to exceed $2,000 in any one particular receivership. The department is
entitled to be reimbursed from the assets of the receivership on the same
basis and priority as otherwise applies by law to payment to receivers
appointed by the court.
(2) If a receiver is appointed as authorized by ORS 586.525, the
surety on the bond of the warehouseman shall be made a party to the
receivership and the action filed by the department. In addition to other
authority provided by law, the receiver shall have authority to give
notice and provide a reasonable time, as approved by the court, to
persons holding warehouse receipts or other evidence of deposit issued by
the defaulting warehouseman, to file their claims with the receiver. The
receiver shall investigate each claim, determine the pro rata share of
grain less setoffs, or the proceeds of the sale of such grains, due each
claimant. The receiver shall also determine the amount, if any, due each
claimant by the surety. The court after hearing may adopt or amend the
findings of the receiver and shall by order, make distribution of grains
or the proceeds from the sale of grains. The court by order shall also
require the surety to make payment to claimants. Such orders unless
appealed as otherwise authorized by law, are to be a final settlement of
such matters between the parties concerned. The receiver is authorized
with the approval of the court to continue the operation of all or any
part of the entire business of the warehouseman and to take any other
course of action or procedure which will best serve the interests of the
depositors or those who need and use the services offered by the licensee
and the warehouse. [1961 c.445 §20]
(1) The State Department of Agriculture shall fix and establish standard
grades to apply to all grain received for shipment or storage by public
warehouses in this state. The department may establish standard grades
for forage products, including but not limited to straw and hay and for
other agricultural commodities received for shipment or storage at such
warehouses.
(2) The standards shall be established or changed in accordance
with the provisions of ORS 632.900 to 632.935. [Amended by 1955 c.731
§18; 1969 c.190 §5; 1997 c.460 §1](1) It is the duty of the State Department of Agriculture,
immediately after the establishment of grades under ORS 586.530, to
supply all warehousemen with a copy of the grades, rules and regulations
of the department.
(2) Every public warehouseman shall keep:
(a) The copy of grades, rules and regulations on file in a
convenient place in every such warehouse.
(b) If an office is maintained in connection with such warehouse, a
copy of the grades, rules and regulations on file in the office.
(c) A placard notice, furnished by the department, posted in a
conspicuous place in every such warehouse and such office, reading as
follows:
___________________________________________________________________________
___A copy of Oregon grades, rules and regulations is on file here for
information of interested parties.
___________________________________________________________________________
___ (3) Every warehouseman shall exhibit the copy of grades, rules and
regulations to any interested party applying therefor at the warehouse or
office and shall permit the interested party to examine and consult the
copy. [Amended by 1955 c.731 §19; 1995 c.79 §317] Each warehouseman
shall report information to the State Department of Agriculture at such
times and as may be required by the department for the necessary
enforcement and supervision of a sound, reasonable and efficient
warehouse inspection program for the protection of depositors of grain
and for persons or agencies who lend money against such grains. [1961
c.445 §21] (1) Any person
operating a public warehouse who desires to discontinue the operation
shall at least 30 days prior to the date of expiration or closing date
notify, by certified or registered mail, at the last-known address all
holders of warehouse receipts, all persons storing grain in such
warehouse and the department of the intention to discontinue the public
warehouse business.
(2) If the address of any holder of a warehouse receipt or persons
storing grain is unknown, then the person operating a public warehouse
shall also give notice of the intention to discontinue the operation of a
public warehouse by publication in some newspaper of general circulation
in the county once a week for two consecutive weeks. The date of the
second published notice shall be at least 30 days prior to the date of
expiration of the operations.
(3) It shall be the duty of owners of such grain to remove, or
cause to be removed, their grain from such warehouse before the
expiration date.
(4) If the warehouseman has not notified all persons or holders of
warehouse receipts as provided in subsection (1) of this section or
published a notice as provided by subsection (2) of this section, and if
at the expiration date of the operations of the warehouseman there are
outstanding warehouse receipts covering grain in storage in the
warehouse, or in the opinion of the department there is reasonable
evidence of outstanding liability by the warehouseman under ORS chapter
77 or this chapter, then:
(a) The warehouseman is required to apply for, obtain and maintain
a bond as provided for in ORS 586.300 until such date that the State
Department of Agriculture determines all grain has been removed from the
warehouse or the rights or claims of all holders of warehouse receipts
have been protected and satisfied.
(b) The department may invoke and is authorized to use the
procedures and authority as provided for in ORS 586.525. The department
is authorized to carry out and the warehouseman is subject to the
provisions of ORS 586.525 regardless of the fact that the license of the
warehouseman may have expired. [1957 c.11 §1; 1961 c.726 §422; 1995 c.79
§318]GRAIN AND COMMODITY INSPECTION, WEIGHING AND GRADING(1) The State Department of
Agriculture shall have exclusive control of the weighing, inspection and
grading of grain at all inspection points established under ORS 586.600,
including public terminal warehouses. The department may also, upon the
request of any interested party, weigh, grade, sample or inspect
commodities of commerce other than grain including but not limited to
hay, grain or hay products, rice, beans and other agricultural or
horticultural commodities, fertilizer, sulphur or other chemicals used in
the arts, science or in manufacturing, when such commodities are received
from or delivered to any rail, water or other motor vehicle carrier
within the state in commercial transportation. The department may certify
the weight, grade or other results of its inspection in accordance with
the request therefor, insofar as its personnel and facilities permit. The
action and certificate of the department, signed by one of its officers,
employees, inspectors or weighers in the discharge of duties, as to all
commodities weighed, graded or inspected by the officer, employee,
inspector or weigher, is conclusive upon all parties interested but
appeal may be taken to the department in the manner provided in ORS
632.960. The provisions of ORS 632.965 shall apply to any certificate
issued under the provisions of this section.
(2) Suitable books and records shall be kept in which shall be
entered a faithful and true record of every carload, motor vehicle load
or cargo or part of cargo of grain and other commodities inspected,
graded or weighed by the department, showing the following:
(a) The number and initial or other designation of the car, motor
vehicle or boat containing the carload, load or cargo or part thereof.
(b) Its weight.
(c) The kind of grain or other commodity, and its grade.
(3) For each carload, load or cargo, or part thereof, of grain or
other commodity inspected, the officers, employees, inspectors and
weighers of the department shall, if requested so to do by consignor or
consignee, give a certificate of inspection showing:
(a) The kind and grade of such grain or commodity and the reason
for all grades below No. 1.
(b) If other than bulk, the number of sacks, bales or other parcels
thereof, with the grade or grades and weight of same.
(4) The department also shall furnish the agent of the railroad
company or other carrier over which such commodity was shipped or carried
a certificate showing the weight thereof, if requested so to do.
(5) The department also shall keep a true record of all appeals,
decisions and a complete record of every official act, which books and
records shall be open to inspection by any party in interest. [Amended by
1955 c.731 §20]The State Department of Agriculture shall fix the fees for
inspection, grading and weighing of grain and other commodities included
in the provisions of ORS 586.210 to 586.730, which fees shall be
sufficient to cover the cost of such service. The fees for the
inspection, grading and weighing of grain or other commodities are lien
upon such grain or other commodities and shall, in the case of grain and
hay only, be paid by the carrier transporting it and treated by the
carrier as advanced charges. The department may prescribe a different
scale of fees for different localities. Notwithstanding any other
provision of this chapter, the fees charged for inspection, grading and
weighing at Portland and at Pendleton shall be the same. [Amended by 1955
c.731 §21; 1967 c.208 §7] If any
owner, consignee or shipper of grain or other commodity, or the agent or
broker of the owner, consignee or shipper or any warehouseman, is
aggrieved at the grading of such commodity, the aggrieved person may
appeal to the State Department of Agriculture as provided in ORS 632.960.
Notice of appeal to the department shall state that the party appeals
from the decision of the inspector and shall specify the initials and
numbers of cars or motor vehicles or the name of the ship in which the
commodity was contained when inspected and graded. [Amended by 1955 c.731
§22] Any place where grain is
received in carload lots or by watercraft, or motor vehicle, may be
designated by the State Department of Agriculture as an inspection point
and be provided with state inspection, grading and weighing. [Amended by
1955 c.731 §23; 1967 c.208 §10](1) All grain and hay
received at public terminal warehouses may be inspected and graded by the
State Department of Agriculture. All grain received at public terminal
warehouses, except that received in truck lots of not more than 15 tons
of grain, shall be weighed by or under the supervision of the department.
Weighing is not required where grain has been officially weighed at point
of origin unless it is so requested by the consignee. If requested, all
grain delivered out of any such warehouse shall be inspected, weighed or
graded in like manner and a certificate of grade issued.
(2) All other grain received at inspection points in carload lots
or in any other manner, in lots containing more than 15 tons of grain,
not unloaded at a public terminal warehouse, shall be weighed. [Amended
by 1955 c.731 §24; 1969 c.190 §6](1) Any officer, employee, deputy inspector, sampler
or weigher of the State Department of Agriculture before opening the
doors of any car containing grain, hay or any other commodity for the
purpose of inspection, grading or weighing shall first ascertain the
condition of such cars and determine whether any leakages have occurred
while the cars were in transit, whether or not the doors were properly
secured and sealed at point of shipment, and shall make a record of such
facts in all cases, giving seal numbers.
(2) After such examinations are made and recorded, and the
inspection, grading or weighing of such grain, hay or other commodity has
been made, such officials shall securely close and reseal such doors as
have been opened by them, using the special seal of the department for
the purpose. Such officials shall make a record of all original seals
broken by them, the date when broken, the state seals substituted
therefor and the date and number of such seals.
(3) The authorized officers, employees, inspectors, deputies,
samplers or weighers of the department shall break the seal, weigh and
superintend the unloading of all cars of grain, hay or other commodity
subject to inspection, grading or weighing. No person other than the
authorized officers, employees, inspectors, deputies, samplers or
weighers of the department shall break the seal or weigh such cars of
grain, hay or other commodity. [Amended by 1955 c.731 §25]Any railroad delivering grain, hay
or other commodities in cars at any of the places provided with state
inspection under ORS 586.210 to 586.730 shall designate safe and
convenient sidetracks on which all cars of such commodities required to
be inspected, graded or weighed shall upon arrival be set and arranged
convenient for inspection, grading or weighing and there held until the
inspection, grading or weighing has been completed, subject to applicable
tariffs, charges and limitations. [Amended by 1955 c.731 §26](1) When occasions arise where it is deemed advisable to load
or unload cars, motor vehicles or cargoes of grain, hay or other
commodities outside of the usual working days or working hours, the State
Department of Agriculture shall provide inspectors and weighers necessary
to supervise the inspection, grading and weighing of such commodities.
The department shall, by rule, fix a reasonable sum per hour to be paid
therefor by the party requesting such unusual service. Such fees are in
addition to the regular fees provided for weighing, grading and
inspection.
(2) All moneys collected under the provisions of this section shall
be paid into the State Treasury and credited to the Department of
Agriculture Account and an amount not exceeding such additional fees may
be paid to the employees of the department by whom such additional
service may be performed. [Amended by 1955 c.731 §27]Samples may be
drawn from all grain and other commodities inspected, graded or weighed.
Such samples become the property of the state and are subject to
disposition by the State Department of Agriculture under such rules and
regulations as the State Department of Agriculture prescribes. The
department shall transmit samples of grain showing the standards thereof
adopted to such foreign chambers of commerce, boards of trade, exporters
and persons, firms, corporations or associations handling and dealing in
grain, as the department deems desirable. Upon request the department
shall furnish such samples to similar parties in this state or the United
States under such reasonable rules and regulations as the department
prescribes. [Amended by 1955 c.731 §28] Every person having
an interest in any grain stored in any public warehouse has the right to
examine at all times during ordinary business hours any grain so stored,
and all parts of the public warehouse. Every warehouseman, the agents and
servants of the warehouseman, shall furnish proper facilities for such
examination. [Amended by 1955 c.731 §29] When
grain, hay or any other agricultural commodity is shipped to points where
inspection is provided and the grain, hay or other agricultural commodity
is unloaded without being inspected, graded or weighed by the State
Department of Agriculture under the provisions of ORS 586.210 to 586.730,
the shipper's weight and grade is conclusive and final and is the weight
and grade upon which settlement shall be made with the seller. [Amended
by 1955 c.731 §30]MISCELLANEOUS PROVISIONS
Except for fees paid under ORS 586.270, 586.580 and 586.650, all fees
collected by the State Department of Agriculture under this chapter shall
be paid into the State Treasury to the credit of the Department of
Agriculture Account. Such moneys constitute a continuing appropriation
for the purpose of carrying out the provisions of this chapter. The fees
paid to the department under ORS 586.270, 586.580 or 586.650 shall be
deposited in the Department of Agriculture Service Fund, and such funds
are continuously appropriated to the department for the purpose of
administering and enforcing this chapter. [Amended by 1955 c.731 §31;
1979 c.499 §10](1) Except as
provided in subsection (2) of this section, every public warehouse and
warehouseman complying with the provisions of ORS 586.210 to 586.730 is
exempt from all the provisions of all other laws of this state regulating
and licensing warehouses and warehousemen.
(2) The provisions of ORS chapter 77 apply to public warehouses and
warehousemen complying with the provisions of ORS 586.210 to 586.730 to
the extent that the provisions of ORS chapter 77 are not inconsistent
with the provisions of ORS 586.210 to 586.730. [Amended by 1955 c.731
§32; 1961 c.726 §423; 1995 c.79 §319] (1) No
warehouseman shall violate, or procure, aid, or abet any violation by any
warehouseman, of any provision of ORS 586.210 to 586.300, 586.315 to
586.380, 586.400, 586.410, 586.520, 586.525, 586.530, 586.550, 586.570 to
586.630 and 586.650 to 586.730, or fail to comply with any order of the
State Department of Agriculture, or procure, aid or abet any warehouseman
in failure to comply with any such order.
(2) No person, individually or acting as an official or agent of
any corporation other than a warehouseman, shall violate any provisions
of ORS 586.210 to 586.300, 586.315 to 586.380, 586.400, 586.410, 586.520,
586.525, 586.530, 586.550, 586.570 to 586.630 and 586.650 to 586.730, or
fail to comply with any order made by the department under those sections
so long as the order remains in force, or procure, aid or abet any such
corporation, in its violation of those sections, or in its failure to
comply with any such order. [Amended by 1983 c.740 §226]PENALTIES(1) Violation of ORS 586.250 is punishable, upon
conviction, by a fine of not less than $1,000 nor more than $3,000, or by
imprisonment in the county jail for not less than six months nor more
than one year, or by both.
(2) Violation of ORS 586.730 is punishable, upon conviction, by a
fine not exceeding $3,000, or by imprisonment in the county jail for not
more than one year, or by both.
(3) Violation of any of the provisions of ORS 586.210 to 586.300,
586.315 to 586.380, 586.400, 586.410, 586.520, 586.525, 586.530, 586.550,
586.570 to 586.630 and 586.650 to 586.720, or failure to comply with any
order, rule, direction, demand or requirement of the State Department of
Agriculture made pursuant to those sections, is punishable, upon
conviction, by a fine not exceeding $3,000 for each offense. Each
violation is a separate and continuing offense; and in case of a
continuing violation, every day's continuance of the violation is a
separate and distinct offense.
(4) Violation of ORS 586.382, 586.385 and 586.395 is a misdemeanor.
[Amended by 1955 c.731 §33; subsection (4) added by 1961 c.445 §22; 1961
c.726 §424; 1963 c.116 §2; 1983 c.740 §227; 1997 c.608 §3]
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