| (a) A warehouse operator shall file with the department
a financial statement showing the net worth of the operator's grain
warehouse business as part of an application for a new license and
thereafter shall file with the department a new financial statement,
reflecting the net worth of the operator's grain warehouse business
at the end of the operator's most recent fiscal year, no later than
the 90th day following the end of the operator's most recent fiscal
year.
(b) The financial statement required by subsection
(a) of this section must be a reviewed or audited financial statement
prepared and signed by an independent public accountant.
(c) The required reviewed or audited financial statement
shall be prepared in accordance with the generally accepted accounting
principles for financial statements and related information established
by the American Institute of Certified Public Accountants and shall
include, but not be limited to, each of the following:
(1) a balance sheet;
(2) a statement of income (profit and loss);
(3) a statement of retained earnings;
(4) a statement of cash flows; and
(5) all accountant certifications, assurances, opinions,
comments, and notes to the financial statement.
(d) The financial statement required by this section
shall be accompanied by:
(1) a certification, under penalty of perjury, that
the financial statement, as prepared, accurately reflects the financial
condition of the operator's grain warehouse business as of the date
designated, and fairly represents the result of operations for the
period designated;
(2) a detailed list of company-owned grain (paid contracted
or the operator's own production), unpaid contracted grain, non-collateral
receipted grain, collateral receipted grain, open storage grain, and
grain received on consignment as of the date designated in paragraph
(1) of this subsection;
(3) a list of all parties in any pending litigation
that claim a monetary judgment against the warehouse operator, the
amount of the claim of each such party, and the status of the litigation;
and
(4) a list of all final unpaid monetary judgments against
the warehouse operator.
(e) If the department has reason to believe that the
financial status of the operator's grain warehouse business has changed
significantly since the last financial statement was submitted or
if the department becomes aware of inaccurate or false information
within or information omitted from a submitted financial statement,
the department may by written notice require the operator to provide
additional financial information and in the case of inaccurate, false,
or omitted information may require the operator to submit a new or
updated audited financial statement prepared and signed by an independent
public accountant.
(f) The notice required by subsection (e) of this section
shall state the reasons why the department believes the financial
status of the operator's grain warehouse business has significantly
changed or specify the information the department believes is inaccurate,
false, or omitted, as applicable. An operator's disagreement with
the information set forth in the notice required by subsection (e)
of this section, however, shall not operate to excuse the warehouse
operator from complying with the notice.
(g) Temporary storage shall be included in determining
net worth bonding requirements and additional net worth bonding may
be required before a temporary storage permit is issued.
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| Source Note: The provisions of this §13.6 adopted to be effective May 17, 2004, 29 TexReg 4755; amended to be effective March 21, 2011, 36 TexReg 1816; amended to be effective December 27, 2022, 47 TexReg 8525 |
