Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
Agriculture & Natural Resources Committee |
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HB 1101
Brief Description: Forwarding grain when an emergency storage situation exists.
Sponsors: Representatives Schoesler, Linville, Grant, Rockefeller, Holmquist, Sump and Mielke; by request of Department of Agriculture.
Brief Summary of Bill |
• Allows, during a grain storage emergency, an extension of the time during which grain may be forwarded from one warehouse to another without the re-issuance of a negotiable receipt for the grain. |
Hearing Date: 1/28/03
Staff: Kenneth Hirst (786-7105).
Background:
Negotiable receipts issued to a depositor by a grain warehouse for the grain deposited for storage in the warehouse must satisfy the requirements of the Uniform Commercial Code and the state's grain warehouse laws. (RCW 22.09.300.) If part of the grain governed by such a receipt is withdrawn by the depositor, the original receipt must be replaced with one showing the amount of the depositor's grain remaining in the warehouse. (RCW 22.09.140.) However, during a grain storage emergency, the Director of the Department of Agriculture may authorize a warehouse to forward grain covered by negotiable receipts to other licensed warehouses for storage without canceling and re-issuing negotiable receipts for the grain. Such an action must be conducted under conditions set by rule. This authority to forward the grain without re-issuing negotiable receipts is for a period that cannot exceed 30 days. (RCW 22.09.660.)
Summary of Bill:
The 30-day limitation on forwarding grain, during a grain storage emergency, to other warehouses without re-issuing negotiable receipts for the grain is eliminated.
Appropriation: None.
Fiscal Note: Not Requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.