FINAL BILL REPORT

HB 1101

C 13 L 03

Synopsis as Enacted

Brief Description: Forwarding grain when an emergency storage situation exists.

Sponsors: By Representatives Schoesler, Linville, Grant, Rockefeller, Holmquist, Sump and Mielke; by request of Department of Agriculture.

House Committee on Agriculture & Natural Resources

Senate Committee on Agriculture

Background:

Negotiable receipts issued to a depositor by a grain warehouse for the grain deposited for storage in the warehouse must satisfy the requirements of the Uniform Commercial Code and the state's grain warehouse laws. If part of the grain governed by such a receipt is withdrawn by the depositor, the original receipt must be replaced with one showing the amount of the depositor's grain remaining in the warehouse. However, during a grain storage emergency, the Director of the Department of Agriculture may authorize a warehouse to forward grain covered by negotiable receipts to other licensed warehouses for storage without canceling and reissuing negotiable receipts for the grain. Such an action must be conducted under conditions set by rule. This authority to forward the grain without reissuing negotiable receipts is for a period that cannot exceed 30 days.

Summary:

The 30-day limitation on forwarding grain, during a grain storage emergency, to other warehouses without reissuing negotiable receipts for the grain is eliminated.

Votes on Final Passage:

House 93  0

Senate 43  0

Effective: July 27, 2003