Chapter 901:7-2 | Licensed Agricultural Commodities Handlers

Rule 901:7-2-01 | License, examination and renewal fees.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) All renewal licenses shall be issued for a twelve-month period and will expire annually on the date which corresponds with the alphabetical listing of the county in which the licensee's main facility is located.

(1) Richland county to Wyandot county on September thirtieth.

(2) Adams county to Erie county on December thirty-first.

(3) Fairfield county to Logan county on March thirty-first.

(4) Lorain county to Putnam county on June thirtieth.

(B) A new license may be issued for an initial period of not less than six months or more than eighteen months so as to expire with the corresponding county in which the main facility is located. The fee for a license issued for a period other than one year is proportionate to the fee for a one-year license.

(C) In addition to the application fee set forth in division (B) of section 926.05 of the Revised Code, the following examination fee shall also be remitted with the application for licensure:

Storage Capacity	Examination fee
0 to 150,000 bu.	$ 100.00
150,001 to 250,000 bu.	$ 200.00
250,001 to 500,000 bu.	$ 300.00
500,001 to 750,00 bu.	$ 400.00
750,001 to 1,000,000 bu.	$ 500.00
1,000,001 to 1,200,000 bu.	$ 600.00
1,200,001 to 1,500,000 bu.	$ 700.00
1,500,001 to 2,000,000 bu.	$ 800.00
2,000,001 to 2,500,000 bu.	$ 900.00
2,500,001 to 5,000,000 bu.	$1,000.00
5,000,001 to 7,500,000 bu.	$1,100.00
7,500,001 to 10,000,000 bu.	$1,200.00

Over ten million bushels:

(1) One thousand two hundred dollars plus fifty dollars per million bushels above ten million bushels or fraction thereof.

The fees quoted in paragraph (A) of this rule shall include the total commodity storage capacity of all facilities operated by the licensed handler as defined in the above rate schedule.

(D) If the application to license is for a facility to be added to one already licensed, the capacity of the new facility shall be added to the existing capacity of the license for the purpose of determining the new examination fee. The total fee due shall be the difference in fee between the old and new examination fees plus the application fee established in division (B) of section 926.05 of the Revised Code. If the license is issued for a period other than one year, the total fee is proportionate to the fee for a one-year license as provided for in division (D) of section 926.05 of the Revised Code.

(E) All fees collected under this rule are deposited into the commodity handler regulatory fund created in section 926.19 of the Revised Code.

Last updated February 13, 2023 at 5:04 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.05, 926.19
Five Year Review Date: 2/13/2028
Prior Effective Dates: 12/30/1987

Rule 901:7-2-02 | Annual commodity statement.

• Effective: February 13, 2023
• Promulgated Under: 119.03

Every licensed handler shall submit with the handler's annual financial statement a schedule for each agricultural commodity handled during the stated fiscal year. Each schedule shall list all corn, soybeans, or wheat received in bushels.

Last updated February 13, 2023 at 5:05 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.05, 926.19
Five Year Review Date: 2/13/2028
Prior Effective Dates: 2/19/2008

Rule 901:7-2-03 | Scale weight ticket format.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) Scale weight tickets, other than those approved for use by persons licensed under the United States Warehouse Act, which are used to weigh agricultural commodities handled shall contain only the following:

(1) A serially numbered ticket series used in numerical order;

(2) The name of the licensed handler and location of warehouse;

(3) Inclusion of the telephone number, hours of operation, and\or facility address is acceptable;

(4) Date the commodity is weighed;

(5) Designation that the commodity is inbound or outbound at the handler's warehouse;

(6) Name of the depositor (inbound), or consignee (outbound);

(7) Name of the commodity;

(8) The gross, tare, and net weight of the commodity and adjustments due to quality factors, if applicable;

(9) The marketing transaction type;

(10) Vehicle driver on or off the scale at the time of weighing;

(11) Initialed or signed by the commodity tester; and

(12) The ticket may be initialed or signed by the driver.

(B) Tickets for agricultural commodities that are handled but not physically delivered into the licensed handler's warehouse shall contain only the following:

(1) A separate ticket series serially numbered and used in numerical order;

(2) The name of the licensed handler and liable location;

(3) Date the commodity is delivered;

(4) Date of entry into the licensed handler's records;

(5) Name of the depositor;

(6) Name of the consignee and location where delivered;

(7) The serial number of original delivery ticket;

(8) Name of the commodity;

(9) The gross, tare, and net weight of the commodity and adjustments due to quality factors, if applicable;

(10) The marketing transaction type between the depositor and licensed handler;

(11) The marketing transaction type between the licensed handler and consignee;

(12) The initials of the person completing the ticket; and

(13) "Warning to Seller: You may have no recourse from the Ohio Agricultural Commodity Depositors' Fund if you did not submit tickets within five days of delivery, demand payment within fifteen days after the last delivery of a contract, enter into a contract with specific pricing terms, or possess a deferred payment agreement with specified payment terms."

(C) Depositors shall submit original delivery tickets and the licensed handler shall issue a direct-delivery ticket within five days of delivery.

(D) One copy of each scale weight ticket shall be retained by the licensed handler as permanent record. Electronic copies are permitted after the original copy has been reviewed and examined by Ohio department of agriculture.

(E) A copy of a scale weight ticket that is used in weighing agricultural commodities or other products that is voided shall be retained as part of the permanent record of the licensed handler.

Last updated February 13, 2023 at 5:05 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.02, 926.05
Five Year Review Date: 2/13/2028

Rule 901:7-2-05 | Suitability and safety of warehouses for inspection and handling agricultural commodities.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) In determining the suitability of warehouses for the storing, shipping, and conditioning of agricultural commodities the director of agriculture may consider:

(1) The physical condition of the warehouse and the warehouse's ability to withstand weather conditions which may cause deterioration of the agricultural commodities stored therein;

(2) Whether the warehouse has handling equipment sufficient to transfer commodities into and out of the warehouse and to maintain quality of the commodity while in storage;

(3) Whether the warehouse has scales of sufficient capacity and dimensions to efficiently and accurately weigh commodities into and out of the warehouse. Receiving and shipping scales shall be tested and sealed at least once annually by one of the following; Ohio department of agriculture weights and measures division, county weights and measures division, or state of Ohio registered service person or company.

(B) If the director finds that a warehouse is unsuitable for the storing of commodities, the director will notify the handler of the requirements necessary to make the warehouse suitable.

(C) If the director finds that a warehouse, bin, or any area of a warehouse is unsafe, only the areas the inspector can safely inspect will be approved and included in the inventory of that inspection. Any area found to be unsafe will not be counted and will not be included in the inventory. The owner of the facility will be notified of the action necessary to make the warehouse safe for examination.

(1) Fixed ladders. If the total length of the climb on a fixed ladder equals or exceeds twenty-four feet up to one hundred fifty feet, the ladder must be equipped with a cage or well and multiple ladder sections. Each ladder section not to exceed fifty feet in length. The ladder sections must be offset from adjacent sections and landing platforms must be provided at maximum intervals of fifty feet.

(2) Fixed ladder cage or well exception. If the fixed ladder equals or exceeds twenty-four feet up to one hundred fifty feet and the ladder is equipped with occupational safety and health administration (OSHA) approved ladder safety systems or personal fall arrest systems.

(3) Guardrail systems. Adequate guardrail systems shall be installed on all silos or bins where walking away from the ladder or manlift is required for physical measurement. Adequate guardrail systems shall be installed on all catwalks used for access to bin measurement.

Last updated February 13, 2023 at 5:06 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.02
Five Year Review Date: 2/13/2028

Rule 901:7-2-06 | Additional warehouse examinations.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) Additional examinations shall occur for any of the following reasons:

(1) A violation notice issued for violations other than inventory reduction or unsigned delayed price agreements;

(2) Failure to comply with a previously issued violation notice;

(3) A violation notice was issued for insufficient assets to cover delayed price obligations; grain inventories to cover grain bailment obligations; or.

(4) A violation notice was issued for insufficient grain inventories to cover grain bailment obligations;

(5) The annual financial statement indicates total assets do not equal or exceed total liabilities; failure to meet the applicable net worth requirement set forth in Chapter 926. of the Revised Code;

(6) The annual financial statement indicates current assets do not equal or exceed current liabilities;

(7) A violation notice issued for incomplete, inadequate or non-current records or inventory; or

(8) The necessary staff not present or available to allow for an examination to be conducted.

(B) If the director or the director's designated representative performs additional examinations for any reason listed in paragraph (A) of this rule, the licensed handler may be charged as follows:

(1) The hourly salary of the examiner times the number of hours required to complete the examination including; meals, lodging, and mileage, and;

(2) Such additional necessary incidental expenses as may be approved by the director of agriculture.

Last updated February 13, 2023 at 5:06 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.02, 926.05
Five Year Review Date: 2/13/2028

Rule 901:7-2-08 | Asset valuation.

• Effective: February 13, 2023
• Promulgated Under: 119.03

The following assets shall not be included or considered as assets for calculating the net worth and\or in determining if current assets exceed current liabilities of a licensee:

(A) Goodwill;

(B) Customer lists;

(C) Non-competition clauses;

(D) Trade names;

(E) Receivables other than trade receivables arising in the ordinary course of the handlers business due from any director, officer, manager, or employee of the handler;

(F) Receivables due from any related party or business of the handler; or

(G) Accounts receivables that are past due over one hundred eighty days. A schedule must be provided with the annual financial statement filing.

Last updated February 13, 2023 at 5:07 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.10
Five Year Review Date: 2/13/2028

Rule 901:7-2-09 | Delayed price agreements, form and contents.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) Licensed handlers who purchase agricultural commodities under delayed price agreements shall do so on the form provided by the department and attached hereto as appendix A to this rule. The original agreement shall be maintained by the handler. The agreements can be converted to electronic copies for storage once the director has reviewed, examined, and recorded the original agreement. The electronic copies will remain available and viewable if requested by the director.

(B) One agreement may cover one or more agricultural commodities delivered by a depositor.

(C) The licensed handler will maintain a log of applicable charges with effective dates as specified in divisions (A) and (B) of section 926.11 of the Revised Code.

Last updated February 13, 2023 at 5:07 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.11
Five Year Review Date: 2/13/2028

Rule 901:7-2-10 | Agricultural commodity tester training.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) A training course in agricultural commodity testing and grading shall meet the following standards to qualify for renewal of an agricultural commodity tester certificate:

(1) Three hour minimum training course to include instruction and training on testing and grading of corn, wheat, and soybeans;

(2) The USDA "Inspecting Grain Practical Procedures for Grain Handlers," September 2016 edition will be used for all instruction and training;

(3) Instruction will include:

(a) How to draw representative samples;

(b) How to divide samples;

(c) How to determine the test weight of the sample;

(d) How to determine the moisture in the sample;

(e) How to determine and pick damaged kernels in the sample; and

(f) How to determine the amount of foreign material or dockage in the sample.

(4) Current events and new technology relative to grain grading or testing may be considered as part of the three hour training course if pre-approved by the director.

(5) Instructors are certified Ohio agricultural commodity testers holding a current certificate issued by the director of agriculture or a licensed federal grain grader holding a current license issued by the U.S. department of agriculture.

(B) Upon completion of an approved training course, the instructor shall provide to the director an individual verification of attendance certificate for each attendee. The verification of attendance certificate includes the attendee's name, address, company, date of the training, and signature of the instructor.

Last updated February 13, 2023 at 5:07 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.30
Five Year Review Date: 2/13/2028
Prior Effective Dates: 2/19/2008

Rule 901:7-2-11 | Application for commodity tester certificate.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) Application for a new or renewal certificate as an agricultural commodity tester shall be made on the form supplied by the director and shall be accompanied by an application fee of twenty-five dollars and proof of training or successful completion of the test. All new applicants and all applicants that have let their certificate expire are required to successfully complete the test before applying for certification.

(B) Successful completion of the test is a score of eighty percent or higher. Any score under eighty percent is considered failure of the test will require the applicant to attend an approved training course prior to retaking the test. After completion of the approved training course, the applicant must successfully complete the test with a score of eighty percent or higher.

(C) Certification as an agricultural commodity tester shall be valid for a period of no less than thirty-six months unless canceled or revoked. All certificates expire on September thirtieth. The applicant is given the remaining days left in the application year up to September thirtieth plus thirty-six months. If a certificate has expired, the thirty-six month period for the renewal certificate will begin the day after the expiration date.

(D) The handler may be fined $50.00 for every person found performing quality tests on commodities without a valid commodity tester certificate.

Last updated February 13, 2023 at 5:08 PM

Supplemental Information

Authorized By: 926.02
Amplifies: 926.30
Five Year Review Date: 2/13/2028
Prior Effective Dates: 2/19/2008

Rule 901:7-2-12 | Buyers exempt from licensing.

• Effective: February 13, 2023
• Promulgated Under: 119.03

(A) Any person whose annual purchases of all agricultural commodities does not exceed thirty thousand bushels and does not participate in agricultural commodity handlng as defined in division (C) of section 926.01 of the Revised Code is exempt from licensing as an agricultural commodity handler. The director of agriculture may examine any records of any person claiming exemption at any reasonable time to verify exemption compliance.

(B) A producer who sells an agricultural commodity to a person who is exempt from the requirement to license as an agricultural commodity handler as defined in division (C) of section 926.01 of the Revised Code is not eligible to file a claim under section 926.18 of the Revised Code for any loss or damage the producer may sustain from the sale of commodities to persons exempt from licensing.

Last updated February 13, 2023 at 5:08 PM

Supplemental Information

Authorized By: 926.01, 926.02
Amplifies: 926.01, 926.02
Five Year Review Date: 2/13/2028