FINAL BILL REPORT
SHB 353
C 393 L 87
BYHouse Committee on Agriculture & Rural Development (originally sponsored by Representatives Rayburn, Nealey, Kremen, Rasmussen and Doty; by request of Department of Agriculture)
Modifying provisions relating to the department of agriculture.
House Committe on Agriculture & Rural Development
Senate Committee on Agriculture
SYNOPSIS AS ENACTED
BACKGROUND:
GRAIN DEALER AND WAREHOUSE LAWS. The state's agricultural warehouse laws require grain dealers and agricultural warehouses to be licensed by the Department of Agriculture. Those laws provide a person who deposits a commodity in such a warehouse or who sells it to a grain dealer with a first priority lien. The department has the authority to take certain specified actions in the event of the financial failure of a grain dealer or warehouseman.
APPLE ADVERTISING COMMISSION. The state's Apple Advertising Commission is created. The commission is required to provide a comprehensive research, advertising and educational campaign.
1961 AGRICULTURAL ENABLING ACT. The 1961 Agricultural Enabling Act is one of two enabling acts under which the producers of an agricultural commodity may establish a marketing agreement for the commodity. A marketing agreement is administered by a commodity commission or board. The members of the commission or board are elected under elections supervised by the Department of Agriculture.
COMMISSION MERCHANT STATUTES. The state's commission merchant statutes require agricultural commission merchants, dealers and limited dealers, brokers, cash buyers, agents and boom loaders to be licensed. The fees for such licenses are specified in law.
ORGANIC FOODS. Foods offered for sale may be advertised or labeled as being organic foods only if they satisfy certain requirements of state law. The laws regulating the sale of such foods are administered by the Department of Agriculture.
LIVESTOCK LIENS. The department administers a lien filing system for statements of security interest in livestock. The filing system is used under state law to determine whether a person registered under the Federal Packers and Stockyard Act takes livestock free of a security interest created by the seller of the livestock. The filing system does not satisfy the criteria established by the federal Food Security Act of 1985 for state lien filing systems used to protect such security interests.
OTHER. State law specifies the official chemists of the department and the procedures to be used in collecting assessments for the Beef Commission.
SUMMARY:
GRAIN DEALER AND WAREHOUSE LAWS. A civil penalty of not more than $1,000 is established for a violation of the laws governing agricultural warehouses and grain dealers. The termination date for certain liens provided by those laws is based upon the date the title to the commodity passes, rather than being based upon the time of the sale of the commodity. Evidence of an obligation which is based upon the storage of a commodity, rather than the sale of the commodity, may be provided by certain scale tickets.
The responsibility of the department to take possession of commodities in a warehouse upon the failure of a warehouse or grain dealer as a means of satisfying claims is expanded to include taking possession of commodities owned by the warehouseman or grain dealer that are in the warehouse. Certain provisions of the laws regarding commodity sales to grain dealers also apply to sales by a Washington producer to a grain dealer whose place of business is located outside the state. The financial information submitted with an application for a grain dealer or warehouse license is confidential and is not subject to public disclosure.
APPLE ADVERTISING COMMISSION. The Apple Advertising Commission is authorized to borrow money and incur indebtedness. The obligations incurred by the commission and other liabilities or claims against it can be enforced only against its assets. No liability for the debts or actions of the commission exists against the state or its subdivision or instrumentality or a member, employee, or agent of the commission in his or her individual capacity. The liability of the members of the commission will be several and not joint.
1961 AGRICULTURAL ENABLING ACT. An alternative procedure is authorized for nominating members of commodity boards created under the 1961 Agricultural Enabling Act. Under certain circumstances, the director of the Department of Agriculture must give notice by mail of a vacancy to all affected producers or handlers and call for nominations in accordance with the marketing order.
The director must designate financial institutions which are qualified as public depositaries, under laws administered by the State Finance Committee, to receive monies for marketing act revolving funds. A commodity assessment under the act may be expressed as a percentage of the receipt price at the first point of sale. A provision of law establishing the maximum assessment on wheat as one-fourth cent per bushel is repealed.
ORGANIC FOODS. The director may adopt rules establishing a certification program for producers of organic food. The rules may govern the number and scheduling of on-farm visits, the submission of samples for analysis and other subjects. The rules may also include a fee schedule that will provide for the recovery of the full cost of the certification program. The fees must be deposited in an account within the agricultural local fund that is not subject to appropriation and will be used solely for carrying out this program.
COMMISSION MERCHANT STATUTES. Licensing fees for commission merchants, dealers and limited dealers, brokers, cash buyers, agents and boom loaders may be established by the director by rule.
LIVESTOCK LIEN. State laws are repealed which establish a procedure for filing statements of security interest in livestock with the Department of Agriculture and which specify the circumstances under which a person registered under the Federal Packers and Stockyard Act selling livestock for others takes the livestock free of any security interest created by the seller.
OTHER. The chief chemist of the Department of Agriculture's dairy and food laboratory replaces the dean of the College of Fisheries at the University of Washington as one of the official chemists of the department. While the federal order for the national beef promotion program is in effect, assessments levied for the Beef Commission will be collected as required by that order.
Retail sales of fresh or frozen lamb products imported from another country, including products from live lambs imported for slaughter in this country, must be labelled as to the country of origin.
The Department of Agriculture is authorized to develop an informational guide to state and federal programs which would be of assistance to farm families.
The director of the Department of Agriculture may establish the frequency of the audits to be conducted regarding the payment of assessments by egg handlers or dealers.
Removed from law is a requirement that 25 percent of the total salary of an at-large horticultural inspector be paid by warrants drawn upon the state treasurer.
VOTES ON FINAL PASSAGE:
House 86 0
Senate 47 0(Senate amended)
House (House insisted)
Free Conference Committee
Senate 48 0
House 98 0
EFFECTIVE:July 26, 1987
May 15, 1987 (Sections 15 and 27)