Preproposal statement of inquiry was filed as WSR 03-12-086.
Title of Rule: WAC 16-237-170 Emergency storage situation.
Purpose: The department's proposed rule amendments implement chapter 13, Laws of 2003 (HB 1101), which amended RCW 22.09.660. The proposed amendments to WAC 16-237-170:
• Extend the time period from thirty to one hundred twenty days that grain covered by negotiable receipts can be forwarded during emergency storage situations without canceling or reissuing the negotiable receipt. The one hundred twenty day time period aligns the department's rule with the United States Department of Agriculture (USDA) requirements under the Uniform Grain and Rice Storage Agreement.
• Allow for possible extensions of the one hundred twenty day time period. Again, this aligns the department rule with the USDA requirements.
• Require written permission from the depositor and/or the holder of the warehouse receipt before the grain is shipped.
• Rewrite WAC 16-237-170 according to clear rule-writing principles that comply with the "clarity" criteria in Executive Order 97-02.
Statutory Authority for Adoption: Chapter 13, Laws of 2003 (HB 1101), RCW 22.09.020(13), and chapter 34.05 RCW.
Statute Being Implemented: Chapter 13, Laws of 2003 (HB 1101) and RCW 22.09.020(13).
Summary: See Purpose above.
Reasons Supporting Proposal: Amendments to WAC 16-237-170 are necessary in order to implement chapter 13, Laws of 2003 (HB 1101), which directs the department to establish, by rule, the period of time that grain, during emergency storage situations, can be forwarded for storage without canceling or reissuing the negotiable receipt. In addition to complying with HB 1101, the department's proposed amendments will align state requirements with the provisions of the Commodity Credit Corporation's Uniform Grain and Rice Storage Agreement. Also, the department believes that the proposed amendments may:
• Help warehouse operators rotate inventories to maintain quality and condition,
• Prevent grain from being piled on the ground outside of storage facilities, and
• Reduce potential risk of loss to producers and depositors who store commodities in public licensed warehouses.
Finally, the proposed clearly written amendments will increase industry's ability to comply with the rule.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Don Michelbook, Spokane, Washington, (509) 533-2488.
Name of Proponent: Washington State Department of Agriculture, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose and Reasons Supporting Proposal above.
Proposal Changes the Following Existing Rules: See Purpose above.
No small business economic impact statement has been prepared under chapter 19.85 RCW. RCW 19.85.030 (1)(a) requires that an agency must prepare a small business economic impact statement (SBEIS) for proposed rules that impose a more than minor cost on businesses in an industry. The proposed amendments to WAC 16-237-170 do not impose any new costs on businesses regulated by the rule. In fact, the department believes that the proposed amendments, especially the extension of the time period from thirty to one hundred twenty days, may enable regulated entities to operate more efficiently and, thereby, reduce their operating costs. For these reasons, an SBEIS is not required and has not been prepared.
RCW 34.05.328 does not apply to this rule adoption. The Washington State Department of Agriculture is not a listed agency under RCW 34.05.328 (5)(a)(i).
Hearing Location: Spokane Agricultural Center, 222 North Havana, Conference Room "B," Spokane, WA, on August 28, 2003, at 1:30 p.m.
Assistance for Persons with Disabilities: Contact Laurie Crose by August 20, 2003, TDD (360) 902-1996 or (360) 902-1976.
Submit Written Comments to: George Huffman, Washington State Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, fax (360) 902-2092, by 5:00 p.m. on August 28, 2003.
Date of Intended Adoption: September 5, 2003.
July 18, 2003
Robert W. Gore
AMENDATORY SECTION(Amending WSR 00-21-043, filed 10/13/00, effective 11/13/00)
WAC 16-237-170 Emergency storage situation. If the director determines that an emergency storage situation exists, a warehouse operator may forward warehouse receipted grain to other licensed warehouses for storage without canceling the depositor's warehouse receipt under the following conditions:
(1) The warehouse operator must ((
notify the department
prior to shipment.
(2) The warehouse operator must obtain a warehouse receipt in his/her name from the receiving warehouse.
(3) The warehouse operator be back in compliance with the requirements described in RCW 22.09.250 within thirty days)):
(a) Obtain written permission from the depositor and/or the holder of the warehouse receipt before the grain is shipped.
(b) Notify the department before the grain is shipped.
(c) Have a warehouse receipt issued in his/her name from the receiving warehouse.
(d) Be back in compliance with the requirements described in RCW 22.09.250 within one hundred twenty days from the date of the first grain shipment.
(2) An extension of the one hundred twenty-day requirement in subsection (1)(d) of this section may be granted for government owned commodities.
[Statutory Authority: RCW 22.09.020(13). 00-21-043, § 16-237-170, filed 10/13/00, effective 11/13/00.]