TITLE 15 DEPARTMENT OF AGRICULTURESubtitle 19 GRAIN DEALERS' LICENSING
Authority: Agriculture Article, 13-212 and 13-213, Annotated Code of Maryland
These regulations govern any person required to be licensed as a grain buyer in this State.
A. The following terms have the meanings indicated.
B. Terms Defined.
A. A person may not be a grain dealer without first obtaining a grain dealer's license from the Secretary as provided by this chapter.
B. By way of example but not limitation, a licensed grain dealer shall be a person who:
C. Types of Licenses. The type of license an applicant shall obtain and the license fee the applicant shall pay is dependent on the number of bushels he anticipates handling in the year of the application as shown in the chart below:
D. The license shall be effective until the following December 31, unless suspended or revoked.E. If a person who has been issued a license is handling an amount of grain greater than the amount he was licensed to handle he shall:
.04 Requirement of Licensure.
A license may not be issued or renewed by the Department unless the applicant has:
A. Applied on a form provided by the Department;B. Paid the fee that is required for the license being obtained as set forth in Regulation .03C of this chapter;C. Complied with one of the following options:
D. Provided proof of insurance coverage as required by Regulation .07 of this chapter; and
E. Provided additional financial information when requested by the Secretary.
If the applicant chooses to post a surety bond, letter of credit or cash guaranty, instead of filing a financial statement, he shall use a form furnished by the Department and post an amount at least as large as the following for the different types of licenses:
B. If the applicant does not file a financial statement, the Department may not issue a:
C. If the applicant chooses the posting option, he shall:
.06 Financial Statement
A. If the applicant chooses to file a financial statement he shall indicate in the statement a minimum net worth for each type of grain dealer's license as follows:
B. If the applicant does not post a surety bond, irrevocable letter of credit or cash guaranty, the Department may not issue a:
C. An applicant for a Type A or B license shall submit a financial statement that:
D. An applicant for a Type C or D license shall file a:
.07 Insurance Requirements for Licensees.
A. A person licensed under this chapter shall insure, and at all times keep insured, in that licensed person's name or as a co-insurer, all of the grain received into the actual physical control or possession of the licensed person.
B. The amount of the insurance shall be the fair market value of the grain and shall include coverage against theft, loss or damage by fire, lightning, inherent explosion, water, windstorm, cyclone, tornado, or other act of God.
C. If any loss or damage to grain or to the warehouse or warehouses occurs, whether the loss was insured against, the dealer shall immediately notify the Secretary, and at the grain dealer's own expense promptly take the steps necessary to collect any money which may be due as indemnity for the loss or damage.D. The applicant shall submit one of the following items as proof of insurance:
E. The Department may not accept as proof of insurance any insurance policy that does not contain a clause requiring the insurer to notify the Secretary at least 45 days in advance of any policy's cancellation or nonrenewal.
F. A person licensed under this chapter may not receive grain into that person's physical control or possession unless insured as required by this regulation.
.08 Posting of License.
Immediately upon receipt, a person shall post the grain dealer license in a conspicuous place at each place of business where grain is received.
.09 Required Records.
A. Records showing the total amount of grain bought, received, exchanged, or stored in the dealer's grain business shall be kept at each place of business or at one central location within the boundaries of the State of Maryland. If records are stored at one central location from more than one location, it shall be noted at each location the central location and the date the transfer of records occurred.
B. Records of grain transactions shall be kept for 3 years.
C. All grain records shall be available to the Secretary upon request. If not, the Secretary may take action as provided by Regulation .10 of this chapter.
.10 Inspection of Records and Premises.
A. Upon request, the Secretary may review grain records of a grain dealer during normal business hours.
B. The Secretary may subpoena the business records of any person believed to be acting as a grain dealer.
C. If a person fails to comply with a subpoena, the Secretary may petition a court of competent jurisdiction to gain compliance.
.11 Disciplinary Action Against Licensee.
A. After a hearing, the Secretary may refuse to issue a license or may suspend or revoke a license for:
B. If a license is suspended or revoked, it shall be returned immediately to the Secretary.
A. A person who violates the provisions of this chapter is guilty of a misdemeanor, and upon conviction by a court of competent jurisdiction, is subject to a fine of $10,000.
B. An injunction prohibiting a person from engaging in a violation of this subtitle may be sought by the Attorney General.
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