Commission Merchants Act Licensing Program
What is the purpose of this licensing program?
The purpose of the Commission Merchants Act is to protect producers, buyers, and sellers of agricultural products against illegal practices.
What activities require a license and who needs to get it?
Individuals and businesses who receive on consignment, take possession or control of, or act as brokers in the resale or processing of unprocessed agricultural products.
Commission Merchant - means any person who receives any agricultural product on consignment for sale or processing for sale, accepts any agricultural product in trust for sale, or in any way handles any agricultural product for the account of the consignor. Bonds are on a sliding scale and actual bond requirement will be based on the annual volume of proceeds returned to consignors.
Dealer - means any person who buys, agrees to buy, or solicits or contracts for title, possession or control of, any agricultural product for the purpose of reselling or processing for resale. A dealer / order buyer in livestock must furnish a federal (Packers and Stockyards Administration) bond in the minimum amount of $10,000 in lieu of the state bond. Bonds are on a sliding scale and actual bond requirement will be based upon the annual gross dollar volume of Washington agricultural purchases.
Limited Dealer - Dealers using this category must file an affidavit setting forth maximum monthly purchases and must make payment for purchases at the time of taking possession of the product.
Cash Buyer - means any person who buys produce, for the purpose of reselling, by paying CASH (no personal or business checks) at the time of taking possession of the product. A cash buyer may not deal in livestock, hay, grain, or straw. A cashier’s check, certified check, or bankdraft may be used in lieu of cash.
Broker - means any person who negotiates the purchase or sale of any agricultural product. No broker may handle the agricultural products involved or the proceeds of such sale.
License Categories
Commission Merchant - means any person who receives any agricultural product on consignment for sale or processing for sale, accepts any agricultural product in trust for sale, or in any way handles any agricultural product for the account of the consignor. Bonds are on a sliding scale and actual bond requirement will be based on the annual volume of proceeds returned to consignors.
Dealer - means any person who buys, agrees to buy, or solicits or contracts for title, possession or control of, any agricultural product for the purpose of reselling or processing for resale. A dealer / order buyer in livestock must furnish a federal (Packers and Stockyards Administration) bond in the minimum amount of $10,000 in lieu of the state bond. Bonds are on a sliding scale and actual bond requirement will be based upon the annual gross dollar volume of Washington agricultural purchases.
Limited Dealer - Dealers using this category must file an affidavit setting forth maximum monthly purchases and must make payment for purchases at the time of taking possession of the product.
Cash Buyer - means any person who buys produce, for the purpose of reselling, by paying CASH (no personal or business checks) at the time of taking possession of the product. A cash buyer may not deal in livestock, hay, grain, or straw. A cashier’s check, certified check, or bankdraft may be used in lieu of cash.
Broker - means any person who negotiates the purchase or sale of any agricultural product. No broker may handle the agricultural products involved or the proceeds of such sale.
How do I apply?
Applications can be obtained online here and renewal applications here which can be submitted by mail to: WSDA, PO Box 42560, Olympia, WA 98504-2560.
How much will this license cost?
Commission Merchant $605
Dealer $605
Limited Dealer $335
Broker $405
Cash Buyer $135
Additional license per class $25
A 25% late renewal penalty of the total license amount is assessed if renewal is received after December 31st of each year.
Dealer $605
Limited Dealer $335
Broker $405
Cash Buyer $135
Additional license per class $25
A 25% late renewal penalty of the total license amount is assessed if renewal is received after December 31st of each year.
Do I need to include anything with my application?
Payment and bond coverage or other acceptable form of security is required with application. The bond amount is based on purchase volume but minimum amounts are established based on the agricultural products being handled.
Is the decision to approve my license dependent on anything besides the information in my application?
An applicant who has previously violated any of the provisions of chapter 20.01 RCW will not be issued a license.
When will I receive my license?
Customers will receive their license within seven days if application is complete. Licenses may take up to 45 days if applications are incomplete.
How long is my license valid?
The license period is January 1 through December 31 of each year.
What is the legal authority?
Chapter 20.01 RCW http://apps.leg.wa.gov/rcw/default.aspx?cite=20.01
Chapter 16-623 WAC http://apps.leg.wa.gov/WAC/default.aspx?cite=16-623
Chapter 16-623 WAC http://apps.leg.wa.gov/WAC/default.aspx?cite=16-623
What is the appeal process?
Upon notice by the Department to deny, revoke, or suspend a license, a person may request a hearing under chapter 34.05 RCW.