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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 35. Oklahoma Department of Agriculture, Food, and Forestry |
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Chapter 10. Agricultural Products |
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Subchapter 7. Public Warehouses |
SECTION 35:10-7-7. Examination of warehouse
Latest version.
- (a) If it is necessary to establish proof of law or rule violation, a special investigation of the chartered warehouse shall be conducted by the Board. The Board may contact the warehouseman, the warehouseman's employees, or any other interested party to gain information for the investigation.(b) If a subsequent examination determines that a warehouseman is in a short position, or has operated in a short position for longer than 72 hours since their last examination, a follow up examination shall be ordered and the warehouseman shall be charged for the cost of this examination. If during this follow up examination it is determined that the warehouseman remains in a short position or has operated in a short position after a designated date, a three (3) month examination schedule shall be initiated and shall continue until the warehouseman has two (2) correct consecutive examinations.(c) Any shortage position of either quantity or quality is a violation of the Public Warehouse and Commodity Indemnity Act and shall be subject to the penalties.(d) If a warehouseman fails to keep adequate commodity records, such as a daily position record, open storage list, or warehouse receipt register, etc., or in the event the commodity records are significantly incorrect, a second examination shall be ordered and the warehouseman shall be assessed a fee for the examination as per the schedule in 35:10-7-2.(e) If a warehouseman has a shortage of stored on hand commodities, the warehouseman shall correct the position of the facility within 72 hours by a valid warehouse receipt or a written receipt verifying the cash purchase of grain. Failure to correct unreasonable shortages by the end of the 72 hour period shall allow the Board to initiate the suspension or revocation of the warehouseman's charter in accordance with the Administrative Procedures Act.(f) If a warehouseman allows the quality of stored on hand commodities to be diminished, the warehouseman shall correct the position of the facility within 72 hours by replacing any damaged or out of condition grain with grain equal in quality to that which was originally delivered by the producer or securing a bond, certificate of deposit, or irrevocable letter of credit in an amount equal to or greater than the difference between the dollar value of the grain delivered and the dollar value of the reduced quality grain. Failure to correct an unreasonable quality change of commodities by a warehouseman shall allow the Board to initiate a suspension or revocation of the charter in accordance with the Administrative Procedures Act.