KRS 251.380: Periodic inspections of licensed grain warehouses and licensed grain

dealers -- Correction of deficiencies.

(1) The department shall inspect each licensed grain warehouse at least two (2) times each year. The department’s inspection shall include:

(a) A determination whether the grain in storage is properly accounted for;

(b) An assessment of the storage facilities for fitness; and

(c) An assessment of the condition of the grain in storage.

(2) The department shall permit a licensee to store gra in at another facility that is licensed and located in the Commonwealth of Kentucky, if the requirements for a surety bond or other evidence of financial responsibility set forth in KRS 251.365 are satisfied.

(3) A licensee that is short of grain may cover the shortage by:

(a) Acquiring additional bond on one hundred percent (100%) of the value of the grain; or

(b) Depositing the shortage value of the grain into a special account that is payable jointly to the licensee and the department.

(4) The department may allow a licensee that is short of grain to substitute one (1) type of grain for another type of grain on a dollar-for-dollar basis.

(5) The department shall inspect each licensed grain dealer at least one (1) time each year. The department’s inspection shall include:

(a) An inspection of the licensee’s scale tickets, settlements, and canceled checks; and

(b) Verification that payments are made by the dealer within thirty (30) days of the completion of delivery.

(6) A licensee that is short of grain sha ll correct any deficiencies identified by the department within the deadline mandated by the department.