§ 26-3-7-3 — Powers and duties of director

Indiana § 26-3-7-3

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 3: WAREHOUSES
• Ch. 7: Indiana Grain Buyers and Warehouse Licensing and

Text

(a) The director may do the following:
(1) Require any reports that are necessary to administer this
chapter.
(2) Administer oaths, issue subpoenas, compel the attendance and
testimony of witnesses, and compel the production of records in
connection with any investigation, informal meeting, or hearing
under this chapter.
(3) Prescribe all forms within the provisions of this chapter.
(4) Establish grain standards in accordance with the grain
standards act and federal regulations promulgated under that act
that must be used by warehouses.
(5) Investigate the activities required by this chapter including the
storage, shipping, marketing, and handling of grain and
complaints with respect to the storage, shipping, marketing, and
handling of grain.
(6) Inspect a facility, the grain stored in a facility, and all property
and records pertaining to a facility. All inspections of an applicant
or licensee under this chapter must take into consideration the
proprietary nature of an applicant's or licensee's commercial
information. This chapter does not authorize the inspection of an
applicant's or licensee's trade secret or intellectual property
information.
(7) Determine whether a facility for which a license has been
applied for or has been issued is suitable for the proper storage,
shipping, and handling of the grain that is stored, shipped, or
handled, or is expected to be stored, shipped, or handled.
(8) Require a licensee to terminate storage, shipping, marketing,
and handling agreements upon revocation of a license.
(9) Attend and preside over any investigation, informal meeting,
or hearing allowed or required under this chapter.
(10) Impose sanctions for violations of this article.
(11) Require all contracts for the purchase of grain from
producers, except a flat price contract or a contract for the
production of seed, to include the following notice immediately
above the place on the contract where the seller of the grain must
sign:
"NOTICE - SELLER IS CAUTIONED THAT
CONTRACTING FOR THE SALE AND DELIVERY OF
GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE
FUTURE PAYMENTS BY YOU TO MAINTAIN THIS
CONTRACT, A LOWER SALES PRICE, AND OTHER
RISKS NOT SPECIFIED.
INDIANA STATE LAW REQUIRES THAT ALL DEFERRED
PRICED GRAIN MUST BE PRICED WITHIN THE CROP
YEAR AS DEFINED BY IC 26-3-7-2(7). THIS CONTRACT
MUST BE PRICED BY _(Insert Date)_.
COVERAGE UNDER THE INDIANA GRAIN INDEMNITY
PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED
TO A FIRST PURCHASER LICENSEE WITHIN THE 15
MONTHS BEFORE THE DATE OF THE REVOCATION OF
A LICENSE AND IS LIMITED TO 100% OF A LOSS FOR
STORED GRAIN AND 80% OF A LOSS FOR OTHER
COVERED CONTRACTS.
BE SURE YOU UNDERSTAND THE NATURE OF THIS
CONTRACT AND THE ASSOCIATED RISKS.".
(12) Require all contracts executed for the production of seed to
include the following notice, in conspicuous letters, immediately
above the place on the contract or an addendum where the seller
of the seed must sign:
"NOTICE - IF THE TERMS OF THIS CONTRACT STATE
THAT THE CONTRACTOR RETAINS OWNERSHIP OF
THE SEED AND ITS PRODUCTS, YOU MAY NOT BE
ELIGIBLE FOR PARTICIPATION IN THE INDIANA GRAIN
INDEMNITY PROGRAM. TO BE ELIGIBLE TO
PARTICIPATE IN THE INDIANA GRAIN INDEMNITY
PROGRAM, FARMERS MUST OWN AND SELL GRAIN OR
SEED. BE SURE YOU UNDERSTAND THE NATURE OF
THIS CONTRACT AND THE ASSOCIATED RISKS.".
(13) At any time, order an unannounced audit for compliance with
this article.
(14) Require all grain buyers offering deferred pricing, delayed
payments, or contracts linked to the commodity futures or
commodity options market in connection with a grain purchase to
document the agreement in writing not more than twenty-one (21)
days after delivery.
(15) Receive and consider financial audits of a licensee conducted
by an independent audit or accounting firm.
(16) Share information with board members regarding the
financial status of a licensee, while the board is in executive
session and without disclosing the name or any other identifying
information of the licensee, including the following:
(A) Whether there is a risk that a licensee's license may be
revoked.
(B) The financial impact to the fund if a licensee identified in
clause (A) were to have the licensee's license revoked.
(C) The estimated number of potential claimants that could
result from the revocation of a licensee identified in clause (A).
(D) Any other information the director determines is necessary
to solicit the advice of the board regarding the financial status
of a licensee.
However, the director may not share information under this
subdivision with a board member who has not executed a
confidentiality agreement.
(b) The director shall do the following:
(1) Establish standards to ensure that a grain buyer has a suitable
financial position to conduct a business as a grain buyer.
(2) Require a person who conducts business as a grain buyer to
first be licensed by the agency.
(c) The director may designate an employee to act for the director
in the administration of this chapter. An employee designee may not:
(1) adopt rules; or
(2) act as the ultimate authority in the administration of this
chapter.
(d) The director may designate an administrative law judge to act for
the director in the administration of this chapter.
(e) The director may determine whether geographically separate
facilities constitute a single warehouse or grain buyer and in making
the determination may consider the following:
(1) The number of facilities involved.
(2) Whether full weighing equipment is present at the
geographically separate facilities.
(3) The method of bookkeeping employed by the separate
facilities.
(4) The hours of operation of the separate facilities.
(5) The personnel employed at the separate facilities.
(6) Other factors the director deems relevant.
(f) For purposes of determining whether a building or other
protected enclosure constitutes a single warehouse that requires a
single license under this chapter, the director may consider the
following:
(1) The presence of a full weighing facility at geographically
diverse warehouse facilities.
(2) The traditional method of record keeping with respect to the
separate facilities.
(3) The hours, number of personnel, and activities of the separate
facilities.
(4) Any other factor considered relevant.
In the absence of contradictory information, any warehouses owned and
operated by the same person that are located within close proximity of
each other are presumed to constitute a single warehouse.
(g) The director and the director's designated representative shall
become members of the national grain regulatory organization and
shall:
(1) work in partnership with other state grain regulatory officials;
(2) participate in national grain regulatory meetings; and
(3) provide expertise and education at national meetings.
(h) The director shall engage an independent third party firm to
conduct a performance review of the agency's auditing practices and
procedures at least once every five (5) years. The agency shall make
reasonable efforts to implement any corrective measures identified in
the performance review to enhance and improve the agency's auditing
practices and procedures. The agency shall make the findings of the
performance review available to the board.
(i) The director may subpoena or require that certain records located
outside Indiana, if any, be brought to a specified location in Indiana for
review by the agency.
Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120,
SEC.2. As amended by P.L.191-1991, SEC.2; P.L.1-1992, SEC.143;
P.L.249-1995, SEC.1; P.L.139-1996, SEC.7; P.L.125-1997, SEC.20;
P.L.173-1999, SEC.2; P.L.75-2010, SEC.11; P.L.60-2015, SEC.5;
P.L.145-2017, SEC.2; P.L.208-2021, SEC.2; P.L.114-2025,
SEC.3.