Chapter 901:7-2 Licensed Agricultural Commodities Handlers

901:7-2-01 License, examination and renewal fees.

(A) All renewal licenses shall be issued for a twelve-month period and shall expire annually on the date which corresponds with the alphabetical listing of the county in which the licensee's main facility is located. Applications for licensure shall expire as follows:

(1) Richland county to Wyandot county on September thirtieth.

(2) Adams county to Erie county on December thirty-first.

(3) Fairfield county to Logan county on March thirty-first.

(4) Lorain county to Putnam county on June thirtieth.

(B) A new license may be issued for an initial period of not less than six months or more than eighteen months so as to expire with the corresponding county in which the main facility is located. The fee for a license issued for a period other than one year shall be proportionate to the fee for a one-year license.

(C) In addition to the application fee set forth in division (B) of section 926.05 of the Revised Code, the following examination fee shall also be remitted with the application for licensure:

Storage Capacity Examination fee

To 10,000 bu. $ 50.00

10,001 to 150,000 bu. $ 100.00

150,001 to 250,000 bu. $ 200.00

250,001 to 500,000 bu. $ 300.00

500,001 to 750,00 bu. $ 400.00

750,001 to 1,000,000 bu. $ 500.00

1,000,001 to 1,200,000 bu. $ 600.00

1,200,001 to 1,500,000 bu. $ 700.00

1,500,001 to 2,000,000 bu. $ 800.00

2,000,001 to 2,500,000 bu. $ 900.00

2,500,001 to 5,000,000 bu. $1, 000.00

5,000,001 to 7,500,000 bu. $1, 100.00

7,500,001 to 10,000,000 bu. $1, 200.00

Over ten million bushels:

(1) One thousand two hundred dollars plus thirty dollars per million bushels above ten million bushels or fraction thereof.

The fees quoted in paragraph (A) of this rule shall include the total commodity storage capacity of all facilities operated by the licensed handler as defined in the above rate schedule.

(D) If the application to license is for a facility to be added to one already licensed, the capacity of the new facility shall be added to the existing capacity of the license for the purpose of determining the new examination fee. The total fee due shall be the difference in fee between the old and new examination fees plus the application fee established in division (B) of section 926.05 of the Revised Code. If the license is issued for a period other than one year, the total fee shall be proportionate to the fee for a one-year license as provided for in division (D) of section 926.05 of the Revised Code.

(E) The fee established under this rule shall be deposited into the commodity handler regulatory fund created in section 926.19 of the Revised Code.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.05 , 926.19
Prior Effective Dates: 12/30/87, 06/25/99, 2/19/2008

901:7-2-02 Annual commodity statement.

Every applicant for a handlers license or renewal of a handlers license shall submit with their financial statement a schedule of the agricultural commodities handled during the twelve months immediately preceding the closing date of his financial statement. The schedule shall list each type of agricultural commodity handled and show the number of bushels handled by type.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.06
Prior Effective Dates: 2/19/2008

901:7-2-03 Scale weight ticket format.

(A) Scale weight tickets, other than those approved for use by persons licensed under the United States Warehouse Act, which are used to weigh agricultural commodities handled shall contain only the following:

(1) The tickets shall be serially numbered and must be used in numerical order;

(2) The name of the licensed handler and location of warehouse;

(3) Inclusion of the telephone number; hours of operation, and\or facility address is acceptable;

(4) Date the commodity is weighed;

(5) Designation that the commodity is inbound or outbound at the handler's warehouse;

(6) Name of the depositor (inbound), or consignee (outbound);

(7) Name of the commodity;

(8) The gross, tare, and net weight of the commodity and adjustments due to quality factors, if applicable;

(9) The marketing transaction type;

(10) Vehicle driver on or off the scale at the time of weighing;

(11) The ticket shall be initialed by the commodity tester;

(B) One copy of each scale weight ticket shall be retained by the licensed handler as permanent record.

(C) A copy of a scale weight ticket that is used in weighing agricultural commodities or other products that is voided shall be retained as part of the permanent record of the licensed handler.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.02 , 926.05
Prior Effective Dates: 2/19/2008

901:7-2-04 Suspension of license.

(A) When the license of an agricultural commodity handler has been suspended by the director of agriculture for a violation of Chapter 926. of the Revised Code, the director shall notify the handler of the restrictions which are imposed upon him in the handling of agricultural commodities during the period of suspension.

(B) Upon written request to the director of agriculture within thirty days after receiving notice of suspension, a handler shall be afforded a hearing in accordance with Chapter 119. of the Revised Code.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.10
Prior Effective Dates: 2/19/2008

901:7-2-05 Suitability and safety of warehouses for inspection and handling agricultural commodities.

(A) In determining the suitability of warehouses for the storing, shipping, and conditioning of agricultural commodities the director of agriculture shall consider:

(1) The physical condition of the warehouse and its ability to withstand weather conditions which may cause deterioration of the agricultural commodities stored therein;

(2) Whether the warehouse has handling equipment sufficient to transfer commodities into and out of the warehouse and to maintain quality of the commodity while in storage;

(3) Whether the warehouse has scales of sufficient capacity to efficiently and accurately weigh commodities into and out of the warehouse.

(B) If the director finds that a warehouse is unsuitable for the storing of commodities he shall notify the handler of the requirements necessary to make the warehouse suitable.

(C) If the director finds that a warehouse, bin or any area of a warehouse is unsafe, only the area(s) the inspector can safely inspect will be approved and included in the inventory of that inspection. Any area found to be unsafe will not be counted and will not be included in the inventory. The owner of the facility will be notified of the action necessary to make the warehouse safe for examination.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.02 , 926.05 , 926.11
Prior Effective Dates: 2/19/2008

901:7-2-06 Additional warehouse examinations.

(A) Additional examinations shall occur for any of the following reasons:

(1) The issuance of a W-70; violation notice for errors other than inventory reduction or unsigned delayed price agreements, or,

(2) Failure to comply with a W-70; or,

(3) Insufficient assets to cover delayed price obligations, insufficient grain inventories to cover grain bailment obligations; or.

(4) Financial statement indicates total assets do not equal or exceed total liabilities; failure to meet the applicable net worth requirement set forth in Chapter 926. of the Revised Code; or

(5) Financial statement indicates current assets do not equal or exceed current liabilities; or,

(6) Incomplete, inadequate or non-current records or inventory; or

(7) Unsafe warehouse conditions.

(B) If the director or his designated representative is unable to conduct or complete an examination, the licensed handler may be charged as follows:

(1) The hourly salary of the examiner times the number of hours required to complete the examination; meals, lodging and mileage, and;

(2) Such additional necessary incidental expenses as may be approved by the director of agriculture.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.02 , 926.05
Prior Effective Dates: 2/19/2008

901:7-2-07 Handler's remittance of the per-bushel fee.

(A) The per-bushel fee to be remitted under section 926.16 of the Revised Code by agricultural commodity handlers to the director of agriculture shall be submitted with a form to be supplied by the director. The form shall summarize the commodities subject to the per-bushel fee that have been handled by the licensed handler for the period covered by the form. A separate form shall be completed for each facility operated by the handler.

(B) The forms shall be forwarded to the director reflecting each quarterly period ending March thirty-first, June thirtieth, September thirtieth, and December thirty-first of each year. The assessment due on commodities subject to the fee for each period shall be included with the form and made payable to the Ohio department of agriculture. The report for each reporting period shall be forwarded to the director not later than thirty days after the close of the period.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.16
Prior Effective Dates: 2/19/2008

901:7-2-08 Asset valuation.

The following assets shall not be included or considered as assets for calculating the net worth and\or in determining if current assets exceed current liabilities of a licensee:

(A) Goodwill;

(B) Customer lists;

(C) Non-competition clauses; or

(D) Trade names.

(E) Receivables other than trade receivables arising in the ordinary course of the handlers business due from any director, officer, manager or employee of the handler.

(F) Receivables due from any related party or business of the handler. .

(G) Accounts receivables that are past due over one hundred eighty days. A schedule must be provided with the annual financial statement filing

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.06
Prior Effective Dates: 2/19/2008

901:7-2-09 Delayed price agreements, form and contents.

(A) Licensed handlers who purchase agricultural commodities under delayed price agreements shall do so on the form provided by the department and attached hereto as appendix A to this rule. The original agreement shall be maintained by the handler:

(B) One agreement may cover one or more agricultural commodities delivered by a depositor.

(C) A log of applicable charges shall be retained by the licensed handler as specified in divisions (A) and (B) of section 926.11 of the Revised Code.

Appendix

OHIO DEPARTMENT OF AGRICULTURE

DELAYED PRICE AGREEMENT

Date: ________________ Number: ______________

It is hereby agreed that the undersigned Seller may, from time to time by Seller's choice, sell and deliver to the undersigned Buyer agricultural commodities on which the price is to be established at a later date. Seller pledges that the commodities delivered pursuant to this agreement shall be free of any lien or encumbrance.

In selling commodities under this agreement, Seller fully understands that Seller is transferring title to Buyer upon delivery, and that after delivery Seller is a creditor of Buyer for the market value of the commodities delivered until the price is established and settlement is completed. If Buyer defaults in his obligation for settlement, Seller's rights as a creditor of Buyer, pending settlement, are set forth in ORC 926.021(B) , which creates a lien on the agricultural commodities delivered to Buyer.

Upon demand by Seller, Buyer is obligated to pay his regular bid price at the time of demand for the commodities being priced by Seller which have been delivered under this agreement, less any service charge which is due and payable to Buyer. Notice of said demand shall be made to Buyer at Buyer's regular place(s) of business and shall be by the following method (check all that apply): _____ (oral) _____ (in writing).

The charges for service under this agreement shall be posted in a location at the handler's facility where they shall be accessible for observation and reading by persons marketing agricultural commodities.

________________________________ _____________________________

Seller name (Please print) Buyer (Please print)

________________________________ _____________________________

Address Address

________________________________ _____________________________

Authorized Signature Authorized Signature

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.021 , 926.29
Prior Effective Dates: 2/19/2008

901:7-2-10 Agricultural commodity tester training.

(A) A training course in agricultural commodity testing and grading shall meet the following standards in order to qualify its participants for exemption from examination for renewal of their agricultural commodity tester certificates:

(1) The training course shall contain not less than three hours of classroom instruction and training which shall include the actual testing and grading of corn, wheat and soybeans;

(2) The USDA "Inspecting Grain Practical Procedures for Grain Handlers,"

February 2009 edition shall be used for all instruction and training.

(3) Instruction and hands on training shall cover the following testing procedures;

(a) Drawing and dividing the sample;

(b) Determining the test weight of the commodity;

(c) Determining the moisture in the commodity;

(d) Determining all types of damaged kernels in the sample;

(e) Determining amount of foreign material and\or dockage in the sample;

(f) Using testing equipment; divider, gram scales, moisture meter, sieves, and sample.

(4) Instructors shall either have a current agricultural commodity tester certificate issued by the director of agriculture or be currently approved by the U.S. department of agriculture grain inspection service, packers and stockyard administration, to test and grade agricultural commodities.

(B) An agricultural commodity tester who, during the year prior to the expiration date of his certificate, completes a training course approved by the director of agriculture shall submit to the director a certificate, supplied by the director, signed by the sponsor of the training course certifying that the tester has completed the training course.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.30
Prior Effective Dates: 2/19/2008, 12/09/2010

901:7-2-11 Application for commodity tester certificate.

(A) Application for a new or renewal certificate as an agricultural commodity tester shall be made on the form supplied by the director and shall be accompanied by an application fee of twenty-five dollars and proof of training or successful completion of the written test.

(B) Successful completion of the written test is a score of eighty percent or higher. Any score under eighty percent is considered failure of the written test will require the applicant to attend an approved training course prior to retaking the written test. After the successful completion of the training course, the application must successfully complete the written test with a score of eight percent of higher.

(C) Certification as an agricultural commodity tester shall be valid for a period of thirty-six months unless canceled or revoked.

R.C. 119.032 review dates: 03/11/2013 and 03/11/2018
Promulgated Under: 119.03
Statutory Authority: 926.02
Rule Amplifies: 926.30
Prior Effective Dates: 2/19/2008

901:7-2-12 Buyers exempt from licensing.

(A) Any person whose purchase of all agricultural commodities does not exceed thirty thousand bushels annually and who is exempt from the requirement to license as an agricultural commodity handler as defined in division (C) of section 926.01 of the Revised Code shall notify the director of agriculture of his exempt status and shall file an annual report with the director on a license exemption form provided by the director . The annual period for the report shall be from the first of July of each year to the thirtieth of June of the following year and shall be filed with the director not later than the thirty-first of August of each year. The person shall not be subject to the per-bushel fee required under section 926.16 of the Revised Code. If, during the period of exemption from licensing, the person's purchases of agricultural commodities exceeds one hundred thousand bushels, the person shall immediately notify the director and comply with licensing requirements including remitting the per-bushel fee required under section 926.16 of the Revised Code.

(B) A producer who sells an agricultural commodity to a person who is exempt from the requirement to license as an agricultural commodity handler as defined in division (C) of section 926.01 of the Revised Code is not eligible to file a claim under section 926.18 of the Revised Code for any loss or damage he may sustain from the sale of commodities to persons exempt from licensing.

(C) A buyer of agricultural commodities who is exempt from the requirement to license as an agricultural commodity handler shall notify any person from whom he purchases a commodity that he is exempt from the requirement to license and that the seller is not eligible to file a claim as stated in paragraph (B) of this rule.

Effective: 07/01/2013
R.C. 119.032 review dates: 04/15/2013 and 07/01/2018
Promulgated Under: 119.03
Statutory Authority: 926.01 , 926.02
Rule Amplifies: 926.01 , 926.02
Prior Effective Dates: 02/19/2008

901:7-2-13 Adjustment of the per bushel fee. [Rescinded].

Rescinded eff 2-19-08

901:7-2-14 Partial delivery on a warehouse receipt. [Rescinded].

Rescinded eff 2-19-08

901:7-2-15 Sale of commodity under bailment. [Rescinded].

Rescinded eff 2-19-08

901:7-2-16 Asset valuation. [Rescinded].

Rescinded eff 2-19-08

901:7-2-17 Delayed price agreements, form and contents. [Rescinded].

Rescinded eff 2-19-08

901:7-2-19 Agricultural commodity tester training. [Rescinded].

Rescinded eff 2-19-08

901:7-2-20 Application for commodity tester certificate. [Rescinded].

Rescinded eff 2-19-08

901:7-2-21 Buyers exempt from licensing. [Rescinded].

Rescinded eff 2-19-08

901:7-2-22 Designated agricultural commodities. [Rescinded].

Rescinded eff 5-12-05

901:7-2-23 Agricultural commodity advisory commission meetings. [Rescinded].

Rescinded eff 2-19-08