Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-03-139.

     Title of Rule and Other Identifying Information: Chapter 16-623 WAC, Commission Merchant Act -- Licensing fees, proof of payment, cargo manifests and registration of acreage commitments, the department is proposing to increase the license fees for commission merchants, dealers, limited dealers, brokers, cash buyers, and agents within the OFM fiscal growth factor for fiscal year 2008 (5.53%).

     Hearing Location(s): Washington State Department of Agriculture, 21 North 1st Avenue, Conference Room 238, Yakima, WA 98902, on June 13, 2007, at 11:00 a.m.

     Date of Intended Adoption: Not before June 20, 2007.

     Submit Written Comments to: Henri Gonzales, P.O. Box 42560, Olympia, WA 98504-2560, e-mail hgonzales@agr.wa.gov, fax (360) 902-2094, by June 13, 2007.

     Assistance for Persons with Disabilities: Contact Henri Gonzales by June 6, 2007, TTY (360) 902-1996 or (360) 902-2061.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule establishes the license fees charged by the commission merchants program for activities authorized in chapter 20.01 RCW. This proposal increases the license fees by no more than 5.53%, which is the OFM fiscal growth factor for fiscal year 2008. Current fees are not adequate to cover the costs of providing services; therefore, the proposed increase is necessary to ensure that the program will remain financially solvent. Chapter 20.01 RCW authorizes the director of the Washington state department of agriculture to adopt rules to enforce and carry out the provisions of this chapter.

     Reasons Supporting Proposal: The commission merchant program enforces the Commission Merchants Act, licenses commission merchants, dealers, brokers and cash buyers, and investigates complaints. The program's revenue is derived almost solely from license fees. This increase in licensing fees would enable the program to cover the costs associated with operating the program.

     Statutory Authority for Adoption: Chapters 20.01 and 34.05 RCW.

     Statute Being Implemented: Chapter 20.01 RCW.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Washington state department of agriculture, governmental.

     Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Kirk Robinson, 1111 Washington Street, Olympia, WA 98504-2560, (360) 902-1856.

     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 business in an industry. The department has analyzed the economic effects of the proposed revisions and has concluded that they do not impose a more than minor cost on small businesses in the regulated industry and, therefore, a formal SBEIS is not required.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington state department of agriculture is not a listed agency under RCW 34.05.328 (5)(a)(i).

May 2, 2007

Mary A. Martin Toohey

Assistant Director

OTS-9570.3

AMENDATORY SECTION(Amending WSR 05-09-094, filed 4/20/05, effective 5/21/05)

WAC 16-623-010   What requirements apply to licenses for commission merchants, dealers, brokers, cash buyers and agents?   (1) The following table summarizes the license fee requirements for commission merchants, dealers, brokers, cash buyers, or agents:

License Class	License Fee	Annual Expiration Date	Annual Renewal Date	Penalty Amount for Not Renewing Before January 1
Commission merchant	$((450.00)) 474.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees
Dealer	$((450.00)) 474.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees
Limited dealer	$((250.00)) 263.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees
Broker	$((300.00)) 316.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees
Cash buyer	$((100.00)) 105.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees
Agent	$((50.00)) 52.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees
Additional license per class	$25.00	December 31	Before January 1	A late renewal penalty of twenty-five percent of the total fees

     (2) A licensee can be licensed in more than one class for an additional fee of twenty-five dollars per class. The principal license must be in the class requiring the greatest fee and all requirements must be met for each class in which a license is being requested.

     (3) All fees and penalties must be paid before the department issues a license.

     (4) Applications for licenses are considered incomplete unless an effective bond or other acceptable form of security is also filed with the director.

     (5) Licenses may be obtained by contacting the department's commission merchants program at 360-902-1854 or e-mail at: commerch@agr.wa.gov. Application forms, bond forms, and forms for securities in lieu of a surety bond are available on the department's web site at: ((http://www.agr.wa.gov/Inspection/CommissionMerchants/default.htm))http://www.agr.wa.gov/Inspection/CommissionMerchants/default.asp.

[Statutory Authority: Chapters 20.01 and 34.05 RCW, 2003 1st sp.s. c 25. 05-09-094, § 16-623-010, filed 4/20/05, effective 5/21/05. Statutory Authority: RCW 20.01.040, [20.01.]125, [20.01.]370, [20.01.]380, [20.01.]410, [20.01.]510. 00-22-071, § 16-623-010, filed 10/30/00, effective 11/30/00.]

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