La. Admin. Code tit. 7 § XXVII-107

Current through Register Vol. 50, No. 11, November 20, 2024

Section XXVII-107 - Application for License (Initial and Renewal); Time for Filing; Contents; Fees; Style of Document

A. Applications for renewal of warehouse, cotton merchant and grain dealer licenses shall be received no later than April 30 of each year. Applications for initial license may be filed at any time during the year. For both initial and renewal licenses, the following information shall be furnished on the application form provided by the commission:

1. type of application:

a. warehouse;

b. grain dealer;

c. cotton merchant;

2. date of submission;

3. nature of application:

a. initial application;

b. renewal application;

4. nature of applicant's business:

a. sole proprietorship;

b. partnership;

c. corporation;

d. association;

e. agricultural cooperative;

f. other;

5. name under which the business will operate;

6. address of the principal office of the business, either in-state or out-of-state, including mailing address, physical location, and telephone number;

7. name of the person in charge (e.g., manager, warehouse operator, principal dealer, etc.) and his residence address and telephone number;

8. if a partnership, the names, addresses, and interests of all partners;

9. if a corporation, the names and addresses of all officers;

10. if an association, including an agricultural cooperative, the names and addresses of all members of the board of directors;

11. name and address of the owner of the business, if not shown under §107. A 7, 8, and 9 of this Part;

12. status of the facility in which the business will be operated:

a. owned by applicant;

b. leased by applicant (short term or long term);

c. rented by applicant and name and address of owner;

d. other;

13. type of agricultural commodities that the applicant will store or trade;

14. for all business locations to be operated under one license:

a. number of locations;

b. address of each location;

c. total capacity;

d. capacity of each location to be licensed, if different from total capacity;

e. name of person in charge of each facility;

15. security status of the applicant:

a. amount of security posted;

b. name and address of issuing company providing the security;

c. period for which the security is written;

16. insurance of applicant:

a. amount of provisional stock insurance carried;

b. name and address of carrier;

c. term of policy;

d. physical address of each location covered by stock insurance;

17. names of all authorized agents;

18. a statement that the applicant will abide by the requirements of R.S. 3:3401-3425 and the regulations contained in this Part;

19. a certified statement that all representations contained in the application and in all required attachments are true and correct;

20. grain dealer applicants only:

a. name of person(s) on grain dealer's staff who is certified as a grain sampler and/or grader;

21. warehouse applicant only:

a. if utilizing paper warehouse receipts, three signature cards, on card forms provided by the commission, completed by each person listed as an authorized agent of the applicant, together with a resolution from the board of directors naming each person, other than the owner or president, whose name is listed as an authorized agent;

b. a copy of the warehouse's current schedule of tariffs or charges;

22. cotton merchant applicants only:

a. name and written notarized agency agreements of cotton agents buying cotton in the state;

23. grain dealers and cotton merchant applicants only:

a. aggregate amount paid to producers during applicant's most recent fiscal year;

24. application for acceptance into the self-insurance fund, if applicable.

B. For initial licensure under R.S. 3:3401-3425, each applicant shall provide a financial statement as of the close of the applicant's most recent fiscal year.

1. The financial statement shall be prepared by an accountant who is not a full-time employee of the applicant and who meets at least one of the following:

a. a certified public accountant;

b. a graduate of an accredited four-year college or university with a degree in accounting; or

c. has passed the examination administered by the National Society of Accountants.

2. The financial statement presented for initial licensure under R.S. 3:3401-3425 may be any of the following:

a. compilation;

b. review;

c. audited.

3. The financial statement shall contain:

a. a balance sheet;

b. a statement of income (profit and loss);

c. a statement of retained earnings;

d. a statement of changes in financial position;

e. a certificate by the applicant or the chief executive officer of the applicant, in the form of an authentic act, that the financial statement accurately reflects the financial condition of the applicant for the period covered in the financial statement;

f. whenever the certificate required under §107. B.3.e of this Part is executed by a representative of the applicant other than the owner or president, a resolution of the board of directors authorizing such representative to execute the certificate is required.

4. Multi-state and/or multi-national corporations with subsidiary divisions located in Louisiana shall either:

a. submit a fully audited financial statement showing the position of the parent company, together with sufficient financial information pertaining to the Louisiana subsidiary to reasonably reflect the corporation's ability to satisfy all obligations to Louisiana producers; or

b. pay all expenses necessary for performance of a full audit, at one or more locations where pertinent corporation records are maintained, by the department's Central Audit Committee.

5. The financial statement shall be prepared and signed by an accountant, as defined in §107. B of this Part, and shall be presented in accordance with generally accepted accounting principles.

a. Financial statements shall include contracts covering commodities which have not been delivered. Contracts covering commodities which have not been delivered to the licensee or applicant shall be brought to market in the financial statement. Contracts on commodities which have not been delivered to the licensee or applicant may be made a part of the financial statement by means of a footnote to the statement.

b. Fixed assets shall be presented at cost on financial statements.

6. Only one financial statement shall be required for a chain of warehouses covered by a single warehouse license.

C. Each licensee shall file a financial statement conforming to the requirements of §107. B of this Part within 90 days after the close of the licensee's fiscal year.

D. Each applicant shall also provide the following information, in addition to completing the required application form and providing a financial statement:

1. evidence of security which meets the requirements set forth in §115 of this Part (warehouse license applicants), §123. G of this Part (grain dealer license applicants) or R.S. 3:3411.1 (cotton merchant license applicants);

2. evidence of provisional stock insurance which meets the requirements set forth in §117 of this Part (warehouses) or §123 of this Part (grain dealers);

3. copy of scale ticket. Applicants who do not use scale tickets in their business operations shall certify to that effect in lieu of filing a scale ticket;

4. applicants who apply under corporate status shall provide evidence of compliance with Louisianas corporation laws.

E. A fee of $200, as required by R.S. 3:3401-3425, shall accompany each application at the time of filing. This fee is non-refundable, whether or not the license is granted.

F. All licenses shall signify on the face the following information:

1. name and address of licensee;

2. if a cotton merchant or grain dealer, the location of the principal place of business;

3. if a warehouse, the licensed capacity of the location covered by the license;

4. amount of security;

5. term of license.

G. Approved licenses shall be issued in the name of the commission and signed by the commissioner.

H. A late fee of $50 may be assessed per application per business day when the application is received after April 30.

La. Admin. Code tit. 7, § XXVII-107

Promulgated by the Department of Agriculture, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 9:289 (May 1983), amended LR 10:75 (February 1984), LR 11:229 (March 1985), amended by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 12:287 (May 1986), LR 19:1300 (October 1993), amended by the Department of Agriculture and Forestry, Office of the Commissioner, LR 24:624 (April 1998), amended by the Department of Agriculture and Forestry, Agricultural Commodities Commission, LR 37:497 (February 2011), Amended by the Department of Agriculture and Forestry, Office of Agro-Consumer Services, Agricultural Commodities Commission, LR 421499 (9/1/2016).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:3405, R.S. 3:3408, R.S. 3:3409, R.S. 3:3410, R.S. 3:3411 and R.S. 3:3411.1.