Ala. Admin. Code r. 80-6-5-.04 - Only Authorized Receipts May be Used
(1) No warehouseman is authorized to issue
any character or form of a receipt except that authorized by law and the rules
and regulations of the State Board of Agriculture and Industries. Receipts now
in use and approved by the State Board of Agriculture and Industries are
approved receipts for use of public warehousemen.
(2) All endorsements on the warehouse receipt
of the words stored in the open, shall be with a rubber stamp across the face
of the receipts with letters of the words to be not less than 1/4 inch in
height.
No receipts shall be used for representing cotton or other articles of value, stored in the open other than those which are in use for the storage of cotton or other articles of value within the warehouse.
(3) The Commissioner of
Agriculture and Industries is authorized to negotiate and make arrangements by
contract with a manufacturer of safety paper to have the seal of the Department
of Agriculture and Industries watermarked in said paper for printing receipts
approved for use by public warehousemen, and to cause the watermarked safety
paper to be placed at the disposal of a contract printer. He is also authorized
to negotiate and make arrangements by contract for printing of public warehouse
receipts on the watermarked safety paper secured by contract from the
manufacturer thereof. The printer shall make such bond or bonds for the
faithful performance of his contract and the proper handling of the watermarked
paper and orders of public warehousemen as the Commissioner may require.
All orders for receipts shall be made to the contract printer by the warehouseman and the printer will submit a copy of the order, in duplicate, to the Department of Agriculture and Industries for approval before the order is filled.
(4)
Any warehouseman who for some extraordinary reason desires to print his
receipts in approved form and/or as an approved Block receipt, on a safety
paper other than that herein described, may do so after first obtaining a
special permit from the Commissioner of Agriculture and Industries, provided
the printer making such receipts posts the necessary bond that may be required
by the Commissioner and meets all other terms required of the contract printer.
Should the warehouseman contract for and use receipts, contrary to the
provisions of this section, the Commissioner may himself, or through his
agents, at his discretion, confiscate such illegal receipts wherever found.
Also the Commissioner himself, or through his agents, may confiscate all unused
receipts of warehousemen whose permits have been withdrawn or who have ceased
to do a warehouse business.
(5)
Warehousemen are also authorized to use and issue receipts printed upon
tabulating machine cards provided such receipts otherwise comply with all
requirements of the law and rules and regulations now in effect which govern
the issuance of uniform warehouse receipts and such receipts must be issued in
accordance with all of the requirements for receipts set out in this rule and
the law.
(6) The Commissioner of
Agriculture and Industries is authorized to enter into a contract with a
manufacturer of tabulating business machine cards whereby such manufacturer
will supply and furnish public warehouses storing cotton with tabulating
machine cards pre-punched which comply with requirements of the Commodity
Credit Corporation on which there shall be imprinted the uniform cotton
warehouse receipts now required of such warehousemen. The manufacturer
furnishing the tabulating machine card receipts shall be required to make and
execute any bond that may be required by the Commissioner for the faithful
performance of his contract and for the proper handling of receipts prepared
for sale and distribution to public warehousemen together with other
requirements which will enable the Commissioner of Agriculture and Industries
to enforce the provisions of the Uniform Commercial Code and this
rule.
(7) In addition to the above
forms of warehouse receipts authorized for use, the form of electronically
recording warehouse receipts knows as an electronic warehouse receipt (EWR)
record is authorized for use provided:
1. that
electronic warehouse receipts recorded, issued and filed meet the requirements
of the regulations promulgated by the Consolidated Farm Services Agency (CFSA),
formerly Agricultural Stabilization Conservation Services (ASCS), and published
in the Federal Register and annually codified as 7 C.F.R. part 735, relating to
the issuance of cotton warehouse receipts, which regulations are incorporated
herein and made a part hereof by reference for use of the Commissioner of the
Alabama Department of Agriculture and Industries (Commissioner) as he may deem
necessary;
2. that the individual
or entity which operates the central filing system (CFS) which stores the (EWR)
records, called "provider", shall meet the requirements of 7 C.F.R. part 735, as determined by the Commissioner. Only provider applicants approved by the
CFSA shall be considered eligible for approval as a provider in Alabama.
Eligible provider applicants shall first apply and secure approval form the
Commissioner prior to providing service. The Commissioner shall not approve
applicants with an interest which may reasonable be deemed to be in conflict
with provider status as determined by Commissioner. Commissioner is authorized
to formulate provider agreement for use as he may prescribe. He may suspend or
terminate a provider's agreement for cause at any time.
3. Approved providers shall furnish to
Commissioner annual audit level financial statements and submit to electronic
data processing audits in like form submitted to CFSA; provide the
Commissioner, for Department purposes, with unrestricted access to the physical
site where the CFS and off-site records are retained, unrestricted access of
provider's CFS and all related and backup files at no charge; and provide in a
timely manner requested information in either electronic or printed format or
both at Commissioner's discretion.
4. Each provider shall maintain an "errors
and omissions", and a "fraud and dishonesty" insurance policy showing users,
holders, and warehousemen as payees, each having a minimum coverage of $2
million dollars with a deductible for each policy not to exceed $10,000.
Provider shall provide Department with proof of such insurance upon request.
Each policy shall contain a clause requiring written notification to Department
thirty days prior to cancellation.
5. In addition to all other authority and
power granted the Commissioner in the execution of the duties of the
Department, as the same shall pertain to the regulation of EWR's for
non-federally licensed warehousemen in the State of Alabama, the Commissioner's
authority and power herein shall in all respects correspond to that of the CFSA
under the provisions of 7 C.F.R. part 735.
(8) The Commissioner may enter into a
contract with providers as may be necessary in order to perform his regulatory
duties hereunder. The provider shall be required to make and execute any bond
that may be required by Commissioner for the faithful performance of the
contract and for the proper handling of EWR records together with other
requirements which will enable the Commissioner to enforce the provisions of
the Uniform Commercial Code, referenced federal regulations, Alabama law and
this rule.
Author: Robert J. Russell
Notes
Statutory Authority: Code of Ala. 1975, ยง 8-15-2.
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