SENATE BILL REPORT

HB 1101

As Reported By Senate Committee On:

Agriculture, March 25, 2003

Title: An act relating to forwarding grain when an emergency storage situation exists.

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 History:

Committee Activity: Agriculture: 3/25/03 [DP].

SENATE COMMITTEE ON AGRICULTURE

Majority Report: Do pass.

      Signed by Senators Swecker, Chair; Brandland, Vice Chair; Jacobsen and Rasmussen.

Staff: Bob Lee (786-7404)

Background: The state Warehouse Audit Act requires that companies which receive grains, dry peas, lentils and other specified agricultural commodities for storage be licensed and bonded. Warehouses licensed under the federal Grain Warehouse Act are exempt. The purpose of the act is to assure proper accounting for the agricultural commodities deposited in warehouses.

Warehouse receipts issued by the licensed warehouse company to the producer indicate the grade, amount and location of the stored commodity. If the grain or other commodity is moved to another location, a new warehouse receipt is to be issued showing the change.

In 1983, an exception was provided allowing grain covered by a warehouse certificate to be forwarded to another licensed warehouse for storage for up to 30 days without canceling and reissuing the warehouse certificate. This exception is allowed if an emergency storage situation appears to exist and the transfer is authorized by the Department of Agriculture pursuant to conditions established by rule.

Summary of Bill: The 30-day limitation on forwarding grain, during a grain storage emergency, to other warehouses without reissuing 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.

Testimony For: This additional flexibility will help when there is a large crop that exceeds the capacity of the local grain warehouse.

Testimony Against: None.

Testified: Representative Schoesler, prime sponsor (pro); Leslie Emerick, WSDA (pro).