Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF AGRICULTURE

OF THE STATE OF MONTANA

In the matter of the amendment of ARM 4.12.1024 and 4.12.1025 relating to the Commodity Warehouses

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

TO: All Concerned Persons

1. On February 16, 2012, at 4:30 p.m. the Montana Department of Agriculture will hold a public hearing in Room 225 of the Scott Hart Building, 302 N. Roberts at Helena, Montana, to consider the proposed amendment of the above-stated rules.

2. The Department of Agriculture will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process and need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Agriculture no later than 5:00 p.m. on February 9, 2012, to advise us of the nature of the accommodation that you need. Please contact Cort Jensen at the Montana Department of Agriculture, 302 North Roberts, P.O. Box 200201, Helena, MT 59620-0201; phone: (406) 444-5402; fax: (406) 444-5409; or e-mail: agr@mt.gov.

3. The rules as proposed to be amended provide as follows, new matter underlined, stricken matter interlined:

4.12.1024 LICENSE FEES FOR COMMODITY DEALERS AND PUBLIC WAREHOUSES (1) The annual licensing fee for each person engaged in the business of a commodity dealer is $464 per facility and for each person operating a public warehouse, the fee is $464 per location.

(2) A warehouse license is not required if the activities that would trigger the need for the license are completed for any customer within 72 hours of receiving the commodity, the commodity is returned to the original producer, and the business carries at least $50,000 in insurance covering the goods of its customers.

AUTH: 80-4-403, MCA

IMP: 80-4-503, 80-4-602, MCA

REASON AND FINANCIAL IMPACT: This is a clarification in rule representing the current understanding of what a public warehouse was meant to be, and as such reflects the past behavior of the department. This rule merely makes clear the bright line between who is and isn't a public warehouse and notes that all service providers not just seed cleaners can be public warehouses if they retain possession of commodities for longer than 72 hours. There is no financial impact.

4.12.1025 AGRICULTURAL SEED WAREHOUSE RECEIPTS - WRITTEN TERMS (1) The public agricultural seed warehousemen shall each day, issue a warehouse receipt for each lot of agricultural seed of one kind received. Agricultural seed of one kind received from one owner during any one day may be construed to be a single lot. ~~If seed is received solely for cleaning and not to be held longer than 24 hours; the warehouseman is not required to issue a warehouse receipt.~~ If seed is received for storage or cleaning and storage, a warehouse receipt shall be issued.

(2) Public agricultural warehouse storage rules and statutes shall apply to all other aspects of agricultural seed warehousing.

AUTH: 80-4-403, MCA

IMP: 80-4-527, MCA

REASON AND FINANCIAL IMPACT: Given the amendment to the rule above this line was redundant with the previous amended rule.

4. Concerned persons may submit their data, views, or arguments concerning the proposed action either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Cort Jensen at the Montana Department of Agriculture, 302 North Roberts, P.O. Box 200201, Helena, MT 59620-0201; telephone (406) 444-5402; fax: (406) 444-5409; or e-mail: agr@mt.gov and must be received no later than February 23, 2012.

5. The Department of Agriculture maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request which includes the name, e-mail, and mailing address of the person and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to Montana Department of Agriculture, 302 North Roberts, P.O. Box 200201, Helena, MT 59620-0201; fax: (406) 444-5409; or e-mail: agr@mt.gov or may be made by completing a request form at any rules hearing held by the Department of Agriculture.

6. An electronic copy of this Notice of Proposed Amendment is available through the department's web site at www.agr.mt.gov, under the Administrative Rules section. The department strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

7. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

DEPARTMENT OF AGRICULTURE

/s/ Ron de Yong /s/ Cort Jensen

Ron de Yong, Director Cort Jensen, Rule Reviewer

Certified to the Secretary of State, January 17, 2012.