PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 00-12-006.
Title of Rule: Commission Merchant Act -- Licensing fees, proof of payment, cargo manifests and registration of acreage commitments.
Purpose: This rule combines chapters 16-621, 16-692 and 16-694 WAC, into one clear and readable rule, new chapter 16-623 WAC. This rule making accomplishes the intent of EO 97-02, regulatory improvement.
Other Identifying Information: Chapter 20.01 RCW is commonly referred to as the Commission Merchant Act.
Statutory Authority for Adoption: RCW 20.01.040, [20.01.]125, [20.01.]370, [20.01.]380, [20.01.]410, [20.01.]510.
Statute Being Implemented: Chapter 20.01 RCW.
Summary: The rule addresses licensing fees for commission merchants, dealers, brokers, cash buyers or agents; record-keeping and proof-of-payment requirements; manifests of cargo and shipping documents for hay and straw; and registration of commitments made by processors to producers.
Reasons Supporting Proposal: This new rule accomplishes the intent of EO 97-02, regulatory improvement by taking three rules governing the agricultural industry and combining them into one rule.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jerry Buendel, 1111 Washington Street, Olympia, WA, (360) 902-1856.
Name of Proponent:
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This rule combines chapters 16-621, 16-692, and 16-694 WAC into one clear and readable rule. The rule addresses licensing fees for commission merchants, dealers, brokers, cash buyers or agents; record-keeping and proof-of-payment requirements; manifests of cargo and shipping documents or hay and straw; and registration of commitments made by processors to producers. This rule making accomplishes the intent of EO 97-02, regulatory improvement in that three distinct rules used by the agricultural industry are combined into a single, easier to read document.
Proposal Changes the Following Existing Rules: This rule eliminates three existing rules and combines them into one. The new rules includes a section record-keeping requirements and minimum requirements for alternative manifests of cargo and shipping documents.
Chapter 16-621 WAC, Registration of acreage commitments made by processors to producers; chapter 16-692 WAC, hay and straw -- Manifests and shipping documents; chapter 16-694 WAC, Agricultural products -- Commission merchants, dealers, brokers, buyers, agents -- License fees, will be repealed.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule does not impose any new requirements, fees or administrative tasks on licensees or producers. The fees cited for licenses in the text of this new rule are the same as those in WAC 16-694-001. Chapter 16-694 WAC is being replaced by this rule.
Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption.
Hearing Location: Washington State Department of Agriculture, 21 North First Avenue, Conference Room 238, Yakima, WA 98902, on October 12, 2000, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Jodi Jones by October 10, 2000, TDD (360) 902-1996, or (360) 902-1976.
Submit Written Comments to: Jerry Buendel, Program Manager, P.O. Box 42560 or 1111 Washington Street, Olympia, WA 98504-2560, e-mail jbuendel@agr.wa.gov, fax (360) 902-2086, by October 10, 2000.
Date of Intended Adoption: October 24, 2000.
August 21, 2000
Candace A. Jacobs, DVM
Assistant Director
OTS-4294.1
COMMISSION MERCHANT ACT -- LICENSING FEES, PROOF OF PAYMENT, CARGO MANIFESTS AND REGISTRATION OF ACREAGE COMMITMENTS
The department of agriculture has written this chapter to implement or clarify selected portions of chapter 20.01 RCW. This administrative rule addresses four topics.
(1) Licensing fees for commission merchants, dealers, brokers, cash buyers or agents.
(2) Recordkeeping and proof of payment requirements for licensees.
(3) Manifests of cargo and shipping documents that accompany hay and straw during transportation.
(4) Rules governing the registration of acreage commitments made by processors to producers of annual crops.
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(1) The license fee to act as a commission merchant, dealer, broker, cash buyer, or agent is:
| LICENSE CLASS | FEE |
| Commission merchant | $357 |
| Dealer | $357 |
| Limited dealer | $198 |
| Broker | $249 |
| Cash buyer | $ 79 |
| Agent | $ 28 |
| Additional licenses (see subsection (2) of this section) | $ 25 |
(3) All licenses expire December 31st of each year.
(4) License renewals must be renewed before January 1st of each year.
(5) Licenses not renewed by January 1st will be assessed a penalty of twenty-five percent of the total fees. Fees and penalties must be paid before the licenses will be issued.
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(1) Every commission merchant, dealer, and cash buyer taking possession of or purchasing agricultural products must make and keep for three years accurate records showing the following:
(a) The name and address of the consignor.
(b) The date received.
(c) The quality and quantity delivered by the consignor and where applicable the dockage, tare, grade, size, net weight or quantity.
(d) An itemized statement of the charges to be paid by the consignor, dealer or cash buyer to be paid by the consignor in connection with the sale.
(e) These records must be made available to the director and the consignor or their authorized representatives.
(2) In addition to subsection (1) of this section, the commission merchant's records must include:
(a) An accounting of all sales, including dates, terms of sales, quality and quantity of agricultural products sold and proof of payments received on behalf of the consignor.
(b) The terms of payment to the producer.
(c) The names and addresses of all purchasers if the commission merchant has any financial interest in the business of the purchaser or if the purchaser has any financial interest in the business of the commission merchant. The business interest may be direct or indirect such as holders of the other's corporate stock, as a copartner or as a lender or borrower of money. The interest must be noted in the records following the name of the purchaser.
(d) A lot number or identifying mark for each consignment which will appear on all sales tags and other records showing the price for which the agricultural products actually sold.
(e) If there is a pooling arrangement, the consignor must have agreed in writing to the pooling arrangement before the commission merchant may handle the agricultural product.
(f) In cases where a pooling arrangement is in place, the requirements of subsections (1)(c) and (d) and (2)(b) and (d) of this section apply.
(g) Keep and make available to the director or consignor or their representative claims filed by the commission merchant against any person for overcharges or damages resulting from the injury or deterioration of agricultural products.
(3) In addition to subsection (1) of this section, dealers and cash buyers must include:
(a) Terms of the sale.
(b) Name and address of the purchaser. The name and address of the purchaser may be deleted from the record furnished to the consignor.
(4) Commission merchants will furnish consignors with proof of payment. Proof of payment will be a listing of payments received by the commission merchant on behalf of any consignor whether through an individual accounting or pool arrangement.
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(1) Commission merchants, dealers, their employees or licensed agents transporting hay or straw on equipment owned or under their control must have a copy of the manifest of cargo with each load.
(2) The manifest must be on a form prescribed by the director. The form is available from the department. Exceptions to the manifest form are outlined in subsections (3) and (4) of this section. The form, as a minimum, will state the following:
(a) Purchaser's name and address.
(b) Hauler's name and address.
(c) Business or person the products were received from and their address.
(d) The commodity, unit count, unit price, total price, total weight, tare weight and weight of the commodity.
(e) Terms of the settlement.
(f) Date.
(3) Any common carrier transporting hay or straw for a commission merchant or dealer may use shipping documents required by the Washington public utilities and transportation commission, or interstate commerce commission.
(4) Any common carriers, commission merchants, dealers, their employees or licensed agents transporting hay or straw may use other shipping documents that have been reviewed and authorized by the department of agriculture. The alternate shipping documents must be authorized by the department prior to their use.
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When reporting plant capacity as provided for under RCW 20.01.510, a processor must report the daily total capacity in tons, cases or other legal and customary measure for each crop for all plants that process any Washington agricultural product. The report must include the name, site address, business address and name of the person(s) who may receive legal service for each processing plant reported.
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(1) Any grower may notify the director that he has an oral commitment with a processor for a specified amount of product within ten days after the commitment was made. The notification will be in writing and sent by certified mail.
(2) When the director receives the notification, he shall notify the processor within five days by certified mail.
(3) The processor will simultaneously notify the director and the grower within ten days by certified mail of receipt of the director's notice whether or not he confirms the notice.
(4) The processor may accept all, none, or any portion of the acreage and/or tonnage stated.
(5) Once the oral commitment is confirmed for all or for a portion of the acreage and/or tonnage, the processor is committed to receive the acreage or tonnage specified. If the contract is that processor's standard contract and the terms of the contract, price or other conditions later offered to the grower are unacceptable to the grower, then the agreement is not binding upon the processor.
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In contracts for the purchase of the production of a specific number of acres, the amount contracted for will be based on the crop yield for the comparable area for the most recent five-year average. The crop yield will be determined by using data from the USDA's National Agricultural Statistics Service.
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