S-749                 _______________________________________________

 

                                                   SENATE BILL NO. 3166

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Senators Bailey, Hansen, Goltz, Barr and Bauer

 

 

Read first time 1/21/85 and referred to Committee on Agriculture.

 

 


AN ACT Relating to the dairy products commission; and amending RCW 15.44.060, 15.44.080, and 15.44.130.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

        Sec. 1.  Section 15.44.060, chapter 11, Laws of 1961 as amended by section 4, chapter 238, Laws of 1979 ex. sess. and RCW 15.44.060 are each amended to read as follows:

          The commission shall have the power and duty to:

          (1) Elect a chairman and such other officers as it deems advisable, and adopt, rescind, and amend rules, regulations, and orders for the exercise of its powers, which shall have the effect of law when not inconsistent with existing laws;

          (2) Administer and enforce the provisions of this chapter and perform all acts and exercise all powers reasonably necessary to effectuate the purpose hereof;

          (3) Employ and discharge advertising counsel, advertising agents, and such attorneys, agents, and employees as it deems necessary, and prescribe their duties and powers and fix their compensation;

          (4) Establish offices, incur expenses, enter into contracts, and create such liabilities as are reasonable and proper for the proper administration of this chapter;

          (5) Investigate and prosecute violations of this chapter;

          (6) Conduct scientific research designed to improve milk production, quality, transportation, processing, and distribution and to develop and discover uses for products of milk and its derivatives;

          (7) Make in its name such advertising contracts and other agreements as are necessary to promote the sale of dairy products on either a state, national, or foreign basis;

          (8) Keep accurate records of all its dealings, which shall be open to public inspection and audit by the regular agencies of the state; ((and))

          (9) Conduct the necessary research to develop more efficient and equitable methods of marketing dairy products, and enter upon, singly or in participation with others, the promotion and development of state, national, or foreign markets; and

          (10) Evaluate and provide financial support to programs designed to develop the leadership skills of dairy farmers.

 

        Sec. 2.  Section 15.44.080, chapter 11, Laws of 1961 as last amended by section 1, chapter 41, Laws of 1973 1st ex. sess. and RCW 15.44.080 are each amended to read as follows:

          (1) There is hereby levied upon all milk  produced in this state an assessment of 0.6% of class I price for 3.5% butter fat milk as established in any market area by a market order in effect in that area or by the state department of agriculture in case there is no market order for that area; and

          (2)  Subject to approval by a producer referendum as provided in this section, the commission shall have the further power and duty to increase the amount of the assessment to be levied upon either milk or cream according to the necessities required to effectuate the stated purpose of the commission.

          In determining such necessities, the commission shall consider one or more of the following:

          (a) The necessities of‑-

          (i)  developing better and more efficient methods of marketing milk and related dairy products;

          (ii) aiding dairy producers in preventing economic waste in the marketing of their commodities;

          (iii) developing and engaging in research for developing better and more efficient production, marketing and utilization of agricultural products;

          (iv) establishing orderly marketing of dairy products;

          (v) providing for uniform grading and proper preparation of dairy products for market;

          (vi) providing methods and means including but not limited to public relations and promotion, for the maintenance of present markets, for development of new or larger markets, both domestic and foreign, for dairy products produced within this state, and for the prevention, modification or elimination of trade barriers which obstruct the free flow of such agricultural commodities to market;

          (vii) restoring and maintaining adequate purchasing power for dairy producers of this state; and

          (viii) protecting the interest of consumers by assuring a sufficient pure and wholesome supply of milk and cream of good quality;

          (b)  The extent and probable cost of required research and market promotion and advertising;

          (c)  The extent of public convenience, interest and necessity; and

          (d)  The probable revenue from the assessment as a consequence of its being revised.

          This section shall apply where milk or cream is marketed either in bulk or package.  However, this section shall not apply to milk or cream used upon the farm or in the household where produced.

          The increase in assessment or any part thereof to be charged producers on milk and cream provided for in this section shall not become effective until approved by fifty-one percent of the producers voting in a referendum conducted by the commission.

          The referendum for approval of any increase in maximum assessment rate or part thereof provided for in this section shall be by secret mail ballot furnished to all producers paying assessments to the commission.  The commission shall furnish ballots to producers at least ten days in advance of the day it has set for concluding the referendum and counting the ballots.  Any interested producer may be present at such time the commission counts said ballots.

          ((Any proposed increase in assessments by the commission subsequent to a decrease in assessments as provided for in RCW 15.44.130(2) shall be subject to a referendum and approval by producers as herein provided.)) The commission shall conduct a hearing to receive testimony, on the level of assessment necessary to advertise and market adequately Washington dairy products in domestic, national, and foreign markets, upon receipt of a petition bearing the names of ten percent of the producers subject to the assessment.  Based on testimony received at the hearing the commission shall determine if the level of assessment shall be put to a referendum of producers.

 

        Sec. 3.  Section 15.44.130, chapter 11, Laws of 1961 as amended by section 2, chapter 60, Laws of 1969 and RCW 15.44.130 are each amended to read as follows:

          (1) In order to adequately advertise and market Washington dairy products in the domestic, national and foreign markets, and to make such advertising and marketing research and development as extensive as public interest and necessity require, and to put into force and effect the policy of this chapter 15.44 RCW, the commission shall provide for and conduct a comprehensive and extensive research, advertising and educational campaign, and keep such research, advertising and education as continuous as the production, sales, and market conditions reasonably require.

          (2) The commission shall investigate and ascertain the needs of dairy products and producers, the conditions of the markets, and the extent to which public convenience and necessity require advertising and research to be conducted.  ((If upon such investigation, it shall appear that the revenue from an assessment provided for in RCW 15.44.080 is more than adequate to accomplish the purposes and objects of this chapter, it shall file a request with the director of agriculture showing the necessities of the industry, the extent and probable cost of the required research and advertising, the extent of public convenience, interest and necessity, and the probable revenue from the assessment herein levied and imposed.  If such probable revenue is more than the amount reasonably necessary to conduct the research and advertising that the public interest and convenience require to accomplish the objects and purposes hereof, the commission shall decrease the assessment to a sum that the commission shall determine adequate to effectuate the purposes hereof:  PROVIDED, That no such change shall be made in rate of assessment until the commission shall have filed with the director a full report of such investigations and findings.  Such change in assessment shall be effective thirty days after such report is filed.)) The commission may decrease or increase the assessment provided for in RCW 15.44.080 following a hearing conducted in accordance with the Administrative Procedure Act, chapter 34.04 RCW:  PROVIDED, That the assessment established in this manner shall not exceed the rate established by producers in the most recent referendum.