Request By:
Hon. Alben W. Barkley, II
Commissioner of Agriculture
Capital Plaza Tower
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Thomas R. Emerson, Assistant Attorney General
This is in reply to your letter raising several questions concerning KRS Chapter 357 and the specific sections of that chapter dealing with grain warehousemen. You must be referring to KRS Chapter 359 dealing with warehouses and warehousemen as KRS Chapter 357 was repealed many years ago and it dealt with the "Bank Collection Code."
Your first question asks who is responsible for the administration of the relevant provisions of KRS Chapter 359.
KRS 359.020 provides in part that no person shall issue any warehouse receipt or voucher upon or for any goods to any person as security for indebtedness unless the goods are the property of the warehouseman and actually in store and under his control at the time the receipt or voucher is issued. KRS 359.030 requires each warehouseman to keep a register containing a list and description of all property stored in his warehouse, the name and address of the owner, if known, the time the goods were received and the amount of charges on the goods. KRS 359.040 states that states that any person injured by the violation of any of the provisions of KRS 359.020 or 359.030 may bring an action against the person who or corporation that committed the violation, to recover all damages sustained because of the violation. In addition, KRS 359.990(1) sets forth penalties (fine and/or imprisonment) for violations of KRS 359.020 or 359.030.
KRS 359.050 requires the proprietor, lessee or manager of a public grain warehouse to obtain a grain warehouseman's license from the county clerk before he transacts any business. Such a license may be revoked by the circuit court in summary proceedings, upon written complaint of any person setting forth the particular violation of the law and on satisfactory proof taken as directed by the court. Also, KRS 359.990 sets forth the penalties for the violation of KRS 359.050.
KRS 359.060 requires each person to whom a grain warehouseman's license is issued to file in the county clerk's office a bond with good sureties approved by the court. Action may be brought on the bond by any person injured by a violation of its conditions.
The Commissioner of Agriculture is required by KRS 359.070 to appoint an inspector, a weigher and a registrar for the grain warehouses of each city containing grain warehouses and having a board of trade, and shall fix their duties and the amount and kind of bond to be given by them. No such person appointed by the Commissioner of Agriculture under KRS 359.070 shall neglect his duty or knowingly or carelessly inspect or grade any grain improperly or accept any money or other consideration for any neglect of duty or for improperly performing any duty. See KRS 359.090. In addition, KRS 359.990(3) sets forth the penalties for any person who improperly influences any such inspector, weigher or registrar in the performance of his duties while KRS 359.070(4) provides for the removal of any inspector, weigher or registrar by the circuit court upon complaint and proof of malfeasance or neglect.
KRS 359.100 deals with the handling of grain tendered to a grain warehouseman; KRS 359.110 sets forth the effect of a delay in delivering grain; KRS 359.120 concerns the handling and moving of grain in storage; KRS 359.130 pertains to the records and reports of grain in warehouses; KRS 359.140 requires a grain warehouseman to post his rates of storage and charges for receipts and deliveries; KRS 359.150 requires grain warehousemen to post printed copies of KRS Chapter 359 and KRS 359.170 deals with the guaranteeing of receipts.
After examining the provisions of KRS Chapter 359, it seems clear that the Department of Agriculture is not responsible for administering the provisions of that Chapter. The Department's only statutory duty is, through the Commissioner, to appoint an inspector, a weigher and a registrar for the grain warehouses pursuant to KRS 359.070. KRS Chapter 359 provides for the filing of a civil action as a means of obtaining relief for persons injured by violations of certain sections of the Chapter in addition to authorizing an action on the grain warehouseman's bond. The penalty provisions of KRS 359.990 would, as a general rule, be enforced by the local prosecuting authorities.
Your second question asks what duty, if any, the fiscal court retains with respect to KRS Chapter 359 after the 1978 amendment to KRS 359.080.
In 1978, the General Assembly repealed rather than amended KRS 359.080. That statute had required the fiscal court in every county containing grain warehouses but not having a board of trade to appoint an inspector, a weigher and a registrar for the grain warehouses in the county. While the fiscal court is no longer required to make such appointments, it probably could enact ordinances, issue regulations, appropriate funds and employ personnel in connection with situations involving grain warehouses which are not covered by state statutes. KRS 67.083(3)(m) gives the fiscal court the power to act in connection with the regulation of commerce for the protection and convenience of the public.
Your third question asks whether the Department of Agriculture may, in the administration of KRS 251.410 to 251.510, require proof of compliance with KRS Chapter 359.
KRS 251.410 to 251.510 deals with licenses for grain storage businesses or operations and requires in part that any person, firm or corporation accepting grain for storage in this state shall first procure a license to do so from the Department of Agriculture. While the Department of Agriculture and the State Board of Agriculture have specifically enumerated duties and responsibilities in connection with those provisions, there is nothing in them extending the Department's responsibilities to the administration and enforcement of KRS Chapter 359 or requiring compliance with KRS Chapter 359 as a condition to obtaining the license required by KRS Chapter 251.