Commission Merchants

Notice: Misrepresentation of a bond for illegal purposes

The Commission Merchants program recently became aware of a misrepresentation of a surety bond that is being used to convince individuals to consign automobiles and recreational vehicles for resale. If you are presented with a bond when approached by someone that is interested in doing business with you, be sure to take the time to research the individual or business to make sure that they are licensed to do business in the state of Washington. It is always a good idea to take a few minutes and research who you are doing business with. For questions or concerns regarding the Commission Merchant Program, including the licensing and bonding of dealers, please contact the program at (360) 902-1854.

Contact Information
Forms
Licensees

The Commission Merchants Program enforces the Commission Merchants Act (RCW 20.01) and administrative rules. Program staff investigates complaints to protect producers, buyers and sellers of agricultural products against illegal activities.

Washington’s Commission Merchants Program was established to protect producers, buyers and sellers of agricultural products against illegal business practices. RCW 20.01, Agricultural Products – Commission Merchants, Dealers, Brokers, Buyers, Agents, was first enacted in 1959. The statute gives the department authority to regulate individuals and businesses that receive on consignment, take possession or control of or act as brokers in the resale or processing of unprocessed agricultural products. The department regulates individuals and businesses through licensing and bonding. The program takes complaints from consignors, conducts investigations and enforcement activities. This program is entirely funded through the collection of license fees and other charges (WAC 16-623); no general fund dollars are received.

Among many provisions this law requires:

Commission merchants, dealers, limited dealers, brokers, and cash buyers be licensed annually by the Washington State Department of Agriculture (WSDA). In most cases agricultural businesses must post bonds. Licenses can be obtained from WSDA at any time, however all licenses expire on December 31 of each year. Bonds are obtained through commercial surety companies.
Commission merchants must remit payment for consignments within 30 days of selling agricultural products on the grower’s account unless otherwise agreed to by contract.
Dealers in livestock must pay within seven days or as required by contract.
Dealers in all other agricultural products must pay within 30 days of taking possession or as required by contract.
Dealers or commission merchants in hay or straw must furnish the producer an endorsed fully completed manifest of cargo for each load. They must obtain a certified net and gross weight from the first certified public scale nearest the producer and furnish the producer a copy of the certified weight ticket within 72 hours of taking possession of the hay or straw.
Limited dealers must pay for purchases of agricultural products upon taking possession.
Cash buyers may only purchase produce for resale and must pay cash (no personal or business checks) for all produce at the time of taking possession. No bond is required for cash buyers.

[Top of Page]

To view PDF files, download Acrobat Reader.

Olympia	Yakima
Mary Hougan, Program Assistant	Bob Radke, Investigations Supervisor
PO Box 42560 Olympia, WA 98504-2560 Phone: (360) 902-1822 Fax: (360) 902-2086	21 N. First Avenue, Suite 110 Yakima, WA 98902 Phone: (509) 249-6961 Fax: (509) 575-2524
E-mail: commerch@agr.wa.gov