Montana Attorney General Opinion 15-206

Opinion No. 206 \Varehouses-Bean Storage-License -Fees. HELD: (1) 'l'hat Chapter 55, Laws of Ill33, applies to all persons engaged in wareh()usin~ and storage of beam; regardless of federal laws. (2) The li- cense fee is required from persons stor- ing beans re~ardless of whether he rents ~vace for this purpose, which he may do without authority if he chooses. (3) Scale ticket may be issued for in- terim between delivery and /.:radin~ of l.eans, hilt bond of warehouseman should cover risk from issuance of scale ticket as storage hegins then. (4) 'Vhere a puhlie warehouseman is licensed, he ma~' store heans without payment of license mentioned in Cha]l- tel' 55, La \\'s of W33. but is otherwise subject to all other requirements of the act. May 10, 193.'3. You submit certain questions per- taining to the storage of heans. Your questions and my opinion are submitted herewith: "l!'irst: 'Viii a warehouse storing heans and operating under the Fed- eral laws come within the provisions of this act'!" It is my opinion that Chapter 55. Laws of l00::l, applies to all persons engaged in the business of warehou&- ing or storing beans as specified in Section 1 in said chapter, regardless of the federal laws, as the subject matter of regulating this business clearly comes within the police powers of the state. "Second: There are warehouses which are renting space and not issu- in~ warehouse receipts, but are still storing beans in this rented space. Will they come within the provisions of this law? They claim that so long as they rent space and do not issue cer- tificates that they do not come within the law." It is my opinion that all persons who are engaged in the business of ware- houo:in~ or storing heans as set forth in Section 1 of said Aat are required to pay the license fee, regardless of whether the~' provide storage space by rental, ownership or otherwise. "Third: "'e understand that some of the bean hou~es which do not come within the pro\"isiolls of the law some- times rent this extra space and store heans in that manner. 'Vould this he permissible or would we have author- ity to grant this ri~ht upon applica- tion ?" I see no reason why a warehouseman may not rent extra space for the stor- a/.:e of graill and no special authority therefor is necessary. However, as hereinbefore stated. this would not re- lieve such wa rehouseman from his re- sponsibility for heans store(} in this manner and he should issue warehouse receipt therefor. "Fourth: Section S of this act pro- vides that all heans accepted for stor- age shall first be graded according to the standards of the United States Department of Agriculture and the grade noted and specified upon the warehouse receipt. At the time of the hean hanest it will he phYSically im- possible to comply with this as the heans must be cleaned before grading and it would probably he se\'cral days hefore a grade coul(] be arrived at. 'Vould it not he possible to issue a sca Ie ticket in the form of an appli- cation for storage and pro\'ide that the date of storage should run from the date of the scale ticket, but actual storage ticket would not be issued until beans are graded, and then to be issued upon surrender of the scale ticket'!" 144 OPINIONS OF THE ATTOHNEY GENEHAL In my opinion therc is no objection to the issuing of scale tickets or tem- porary storage tickets pending the grad- ing of the beans although the actual storage of the beans would date from the time the beans are delivered to [he warehouseman. "Fifth: Could a provision be put into the bond which would cover the stor- age of the beans between the date of the scale ticket and the time the reg- ular storage ticket was issued?" A provision could and should be put into the bond so that it would protect the owner of the beans stored from the date of the actual delivery of the beans until the regular storage ticket is is- sued. It is my opinion that a public ware- houseman operating under the ware- house laws of the state, engaged in storing beans, comes within the provi- sions of this act although he would not lie required to pay an additional license fee. The license fee will apply to all persons engaged in the business of warehousing or storing beans "not al- read~· licensed under the public ware- housing act." This exception herein quoted is expressly set forth in Section 1 of the act. It is my opinion, however, that the act applies otherwise and that all warehousemen storing beans, would be required to comply with the provi- sions thereof, including the furnishing of such bond as the commissioner may fix. ( Note: See Cha-p.l64, Laws of 1935.)