SENATE BILL REPORT

SB 6208

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of January 24, 2012

Title: An act relating to license fees under the warehouse act.

Brief Description: Regarding license fees under the warehouse act.

Sponsors: Senators Schoesler and Hatfield.

Brief History:

Committee Activity: Agriculture, Water & Rural Economic Development: 1/23/12.

SENATE COMMITTEE ON AGRICULTURE, WATER & RURAL ECONOMIC DEVELOPMENT

Staff: Bob Lee (786-7404)

Background: The Department of Agriculture is charged with administering the Grain Warehouse Act. Under that act, the department supervises the receiving, storage, weighing and inspection of grain. It also is authorized to conduct audits of warehouses. Warehouses that store specified agricultural commodities are required to be licensed and bonded. Funding for administering the program is derived from the fees paid by licensees which are placed in a separate non-appropriated account.

Summary of Bill: The fees are increased for the following:

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: Due to consolidations of warehouses, funds have declined. Fees haven't been raised for at least a decade. Additional funding is needed to train and employ grain warehouse auditors. There is a need to generate a bit more from fees than the current bill and suggest that the fees for country warehouses also be increased. The industry understands the need to provide sufficient revenue to adequately administer the program.

Persons Testifying: PRO: Dan Coyne, WA Assn. of Farmer Cooperatives; Mark Streuli, Department of Agriculture.