Stemming from the failure of several large grain warehouse operations over the past couple of years, TDA has proposed to increase the maximum penalty for non-compliance from $500 to $10,000 per incidence.
Citing a two-year-old request from the Sunset Commission to deter non-compliance, TDA is asking for comments on the proposed rule change prior to September 7th. As changes from the Grain Warehouse Task Force (including raising licensing fees; increasing minimum net worth to $200,000; having a reviewed financial statement, etc.) go into effect, many elevators have chosen with a short crop not to renew their state issued license.
Where there were 217 elevators being overseen by TDA this time last year, there are currently only 187 such facilities today. While most serious violations at an elevator center on the movement of grain to a “company position” without proper documentation or permission, the bulk of penalties come from bookkeeping violations.