PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: The purpose of this rule making is to implement chapter 13, Laws of 2003 (HB 1101), which amended RCW 22.09.660, and was unanimously passed by the 2003 legislature and signed by Governor Locke on April 14, 2003. The department will implement HB 1101 by amending WAC 16-237-170 Emergency storage situation, to:
• Extend the time period from thirty to one hundred twenty days that grain covered by negotiable receipts can be forwarded during emergency storage situations without canceling or reissuing the negotiable receipt. The one hundred twenty day time period aligns the department's rule with United States Department of Agriculture (USDA) requirements under the Uniform Grain and Rice Storage Agreement.
• Allow for possible extensions of the one hundred twenty day time period. Again, this aligns the department rule with the USDA requirements.
• Require written permission from the depositor and/or the holder of the warehouse receipt before the grain is shipped.
The department will also rewrite WAC 16-237-170 according to clear rule-writing principles that comply with the "clarity" criteria in Executive Order 97-02.
Statutes Authorizing the Agency to Adopt Rules on this Subject: Chapter 13, Laws of 2003 (HB 1101), RCW 22.09.020(13), and chapter 34.05 RCW.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Amendments to WAC 16-237-170 Emergency storage situation, are needed to implement chapter 13, Laws of 2003 (HB 1101), which directs the department to establish, by rule, the period of time that grain, during emergency storage situations, can be forwarded for storage without canceling or reissuing the negotiable receipt. In addition to complying with HB 1101, the department's amendments will align state requirements with the provisions of the Commodity Credit Corporation's Uniform Grain and Rice Storage Agreement. The draft amendments may help warehouse operators rotate their inventory to maintain quality and condition, may prevent grain from being piled on the ground outside of storage facilities, and may reduce potential risk of loss to producers and depositors who store commodities in public licensed warehouses. Finally, the amendments have been written according to clear rule-writing principles to comply with Executive Order 97-02 criteria for clarity.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The USDA and the Commodity Credit Corporation. The warehouse audit program has provided these agencies with copies of the draft amendments to WAC 16-237-170 for their review and comment.
Process for Developing New Rule: The draft rule amendments have been developed as a result of industry input, especially from the Warehouse Audit Advisory Committee. Copies of the draft rule amendments can be obtained from and comments regarding them can be sent to Don Michelbook at the address listed below. Once the draft amendments are finalized, interested parties can submit comments during the public comment period and can participate during the public hearing process.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Don Michelbook, Program Manager, Washington State Department of Agriculture, Warehouse Audit Program, P.O. Box 11559, Spokane, WA 99211, phone (509) 533-2488, fax (509) 533-2486, e-mail dmichelbook@agr.wa.gov.
June 4, 2003
Robert W. Gore
Assistant Director