HOUSE BILL REPORT

ESSB 5170

As Amended by the House

BYSenate Committee on Agriculture (originally sponsored by Senators Hansen, Barr, Gaspard, Bauer, Bailey, Benitz and Patterson)

Changing provisions relating to agricultural fees and assessments.

House Committe on Agriculture & Rural Development

Majority Report:  Do pass with amendment.  (12)

      Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Brooks, Chandler, Doty, Grant, Holm, Jacobsen, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE APRIL 2, 1987

BACKGROUND:

The horticultural nursery statutes establish a schedule of licensing fees for nursery dealers.  The amount of the fees is based upon annual gross business sales of horticultural plants and turf. The monies received from such fees are paid into the Nursery Inspection Fund of the state treasury which is subject to appropriation.

Those statutes also establish an assessment on the gross sale price of the wholesale market value for all fruit trees, fruit tree seedlings, and fruit tree rootstock sold within or shipped from the state by a licensed dealer.  The maximum rate of assessment is set at 1 percent of that price; the director is authorized to reduce the assessment rate.  Revenues generated by the assessment are deposited in the Northwest Nursery Fund which is not subject to appropriation.

SUMMARY:

The director of Agriculture is authorized to establish horticultural nursery dealer license fees by rule. The provisions of law establishing those fees by statute are repealed.  The director shall establish a schedule of fees for retail licenses which shall include at least two specified categories of licensees.  The director shall also establish a schedule of fees for wholesale licenses. Fees which, under current law, are deposited in the Nursery Inspection Fund of the state treasury are now to be paid to the director, deposited in an account within an agricultural local fund, and used solely for carrying out the horticultural nursery statutes.  The account is not subject to appropriation.  Any residual balance of funds remaining in the fund on the effective date of this bill shall be transferred to that account.

The director is authorized to establish the annual assessment on the gross sale price of all fruit trees, fruit tree seedlings, and fruit tree rootstock.  A provision of law limiting the assessment to not more than 1 percent of such sales is repealed and the assessment is also applied to rootstock other than that of fruit trees when used for fruit tree propagation.  The rate of the assessment is to conform to the costs necessary to carry out fruit tree certification and nursery improvement programs funded by the Northwest Nursery Fund.

The director may, under certain circumstances, expend up to 50 percent of the money collect from assessments during each fiscal year for the purpose of testing and improvement of fruit trees, seedlings, rootstock, or other plant material used for the propagation of fruit trees.

The department is authorized to audit licensees during normal business hours to determine whether the appropriate fees and assessments have been paid.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Bruce Briggs, Briggs Nursery; Steve McGonigal, Washington State Nurserymen's Association; Mike Schwisow, Department of Agriculture.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    (1) The bill gives the department the flexibility to change the fee schedule and the categories of licensees for fee purposes to keep pace with changes in the industry.  (2) The bill will permit the department to fund tree fruit research at Washington State University's Prosser research station.

House Committee - Testimony Against:      None Presented.