S-1760.1                   _______________________________________________

                                            SUBSTITUTE SENATE BILL 5678

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Senate Committee on Agriculture (originally sponsored by Senators Loveland, Newhouse, Deccio and Winsley)

Read first time 02/17/93.

Exempting licensed domestic wineries from commission merchant requirements.

          AN ACT Relating to exempting domestic wineries from chapter 20.01 RCW; and reenacting and amending RCW 20.01.030.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  RCW 20.01.030 and 1989 c 354 s 38 and 1989 c 307 s 37 are each reenacted and amended to read as follows:

          This chapter does not apply to:

          (1) Any cooperative marketing associations or federations incorporated under, or whose articles of incorporation and bylaws are equivalent to, the requirements of chapter 23.86 RCW, except as to that portion of the activities of the association or federation that involve the handling or dealing in the agricultural products of nonmembers of the organization:  PROVIDED, That the associations or federations may purchase up to fifteen percent of their gross from nonmembers for the purpose of filling orders:  PROVIDED FURTHER, That if the cooperative or association acts as a processor as defined in RCW 20.01.500(2) and markets the processed agricultural crops on behalf of the grower or its own behalf, the association or federation is subject to the provisions of RCW 20.01.500 through 20.01.560 and the license provision of this chapter excluding bonding provisions:  PROVIDED FURTHER, That none of the foregoing exemptions in this subsection apply to any such cooperative or federation dealing in or handling grain in any manner, and not licensed under the provisions of chapter 22.09 RCW;

          (2) Any person who sells exclusively his or her own agricultural products as the producer thereof;

          (3) Any public livestock market operating under a bond required by law or a bond required by the United States to secure the performance of the public livestock market's obligation.  However, any such market operating as a livestock dealer or order buyer, or both, is subject to all provisions of this chapter except for the payment of the license fee required in RCW 20.01.040;

          (4) Any retail merchant having a bona fide fixed or permanent place of business in this state, but only for the retail merchant's retail business conducted at such fixed or established place of business;

          (5) Any person buying farm products for his or her own use or consumption;

          (6) Any warehouseman or grain dealer licensed under the state grain warehouse act, chapter 22.09 RCW, with respect to his or her handling of any agricultural product as defined under that chapter;

          (7) Any nurseryman who is required to be licensed under the horticultural laws of the state with respect to his or her operations as such licensee;

          (8) Any person licensed under the now existing dairy laws of the state with respect to his or her operations as such licensee;

          (9) Any producer who purchases less than fifteen percent of his or her volume to complete orders;

          (10) Any person, association, or corporation regulated under chapter 67.16 RCW and the rules adopted thereunder while performing acts regulated by that chapter and the rules adopted thereunder;

(11) Any domestic winery, as defined in RCW 66.04.010, licensed under Title 66 RCW, with respect to its transactions involving agricultural products used by the domestic winery in making wine.

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