HOUSE BILL REPORT

                  HB 2868

                    As Passed Legislature

Title:  An act relating to electronic forms of warehouse receipts.

Brief Description:  Allowing electronic warehouse receipts.

Sponsors:  Representatives Ericksen and Linville.

Brief History:

  Committee Activity:

Agriculture & Ecology:  1/28/00, 2/1/00 [DP].

Floor Activity:

Passed House:  2/8/00, 97-0.

Passed Senate:  3/2/00, 44-0.

Passed Legislature.

                 Brief Summary of Bill

$Allows warehouse receipts to be issued in an electronic form.

HOUSE COMMITTEE ON AGRICULTURE & ECOLOGY

Majority Report:  Do pass.  Signed by 12 members:  Representatives G. Chandler, Republican Co-Chair; Linville, Democratic Co-Chair; Cooper, Democratic Vice Chair; Koster, Republican Vice Chair; Anderson; B. Chandler; Delvin; Fortunato; Grant; Reardon; Schoesler and Wood.

Staff:  Bill Lynch (786-7092).

Background:

Article 7 of the Uniform Commercial Code governs warehouse receipts, bills of lading, and other documents of title.  A warehouseman is a person who stores goods for hire and is authorized to issue warehouse receipts.  Warehouse receipts are generally negotiable.

A warehouse receipt is not required to be in any particular form.  There is a requirement, however, for a warehouse receipt to contain certain terms in written or printed form in order for a warehouseman to avoid liability to a person injured by the omission of the terms.  Some of these terms include the location of the warehouse where the goods are stored; the date of issue of the receipt; and a description of the goods.  The Uniform Commercial Code does not authorize electronic warehouse receipts.

Summary of Bill:

Warehouse receipts, as defined in Article 7 of the Uniform Commercial Code, may be issued in an electronic form.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date of Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This modernizes practices by allowing customers who want an immediate receipt to get one.  It also saves businesses a lot of money in mailing and transaction costs.  One warehouse issued 105,000 warehouse receipts last year.

Testimony Against:  None

Testified:  Representative Doug Ericksen, prime sponsor; and Sheryl Hershey, Bellingham Cold Storage.