SENATE BILL REPORT

SHB 1285

BYHouse Committee on Agriculture & Rural Development (originally sponsored by Representatives Taylor, Day, Padden, S. Wilson, Prince, Bumgarner, Dellwo, Smith, May, Moyer and Silver)

Providing an exemption to the bonding requirements for grain dealers.

House Committe on Agriculture & Rural Development

Senate Committee on Agriculture

Senate Hearing Date(s):February 18, 1988; February 19, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Halsan, Hansen.

Senate Staff:Kaleen Cottingham (786-7415)

                  February 19, 1988

AS REPORTED BY COMMITTEE ON AGRICULTURE, FEBRUARY 19, 1988

BACKGROUND:

State law requires grain dealers to be licensed and bonded.  The bonding is to, among other things, assure that the dealer will pay for the commodity.  A grain dealer is someone who solicits, contracts for, or obtains from a producer grain or similar commodity for purpose of resale.  The annual license fee for a grain dealer is $300 unless the dealer is also licensed as a grain warehouseman in which case the fee is $150.  The minimum bond required for a grain dealer is $50,000.  In lieu of a bond, the grain dealer may give the Department of Agriculture a certificate of deposit or other acceptable security.

SUMMARY:

Grain dealers who pay for grain only in cash may be exempt from bonding or providing other security by rule of the department.  The licensing fee for such grain dealers is reduced to $75.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The exemption from bonding is limited to grain dealers who do no more than $100,000 in business annually and who pay for the grain in cash, cashier's check, certified check or bank draft.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Mike Schwisow, Department of Agriculture (for)