WSR 02-13-132

PROPOSED RULES

DEPARTMENT OF AGRICULTURE


[ Filed June 19, 2002, 11:36 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-08-078.

     Title of Rule: The Washington State Department of Agriculture procedural rules for funding commodity commissions.

     Purpose: The proposed rules provide a method to fund staff support of 1/2 FTE by all commodity boards and commissions as authorized under ESHB 2688 (sections 7, 44 and 72-78, chapter 313, Laws of 2002).

     Statutory Authority for Adoption: Chapter 43.23 RCW and sections 7, 44 and 72-78, chapter 313, Laws of 2002.

     Statute Being Implemented: Chapters 15.65, 15.66, 15.24, 16.67, 15.44, 15.28, 15.76, 15.26, 15.88, 43.23 RCW and ESHB 2688 (sections 7, 44 and 72-78, chapter 313, Laws of 2002).

     Summary: Before July 1 of each fiscal year, the department will determine the total financial obligation of each commission using the criteria set out in the proposal, and on or about July 1 of each year the department will bill each commission for its share.

     Reasons Supporting Proposal: To provide funding for 1/2 of the commodity commission coordinator position from funds contributed by all commodity boards or commissions.

     Name of Agency Personnel Responsible for Drafting: Dannie McQueen, Program Manager, P.O. Box 42560, Olympia, WA 98504-2560, (360) 902-1809; Implementation: Deborah Anderson, P.O. Box 42560, Olympia, WA 98504-2560, (360) 902-2043; and Enforcement: William E. Brookreson, P.O. Box 42560, Olympia, WA 98504-2560, (360) 902-1810.

     Name of Proponent: Washington State Department of Agriculture, governmental.

     Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: A meeting of commodity commission representatives was held in order to determine the method for funding the 1/2 FTE. The proposal is based on the outcome of that meeting.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: Legislation was passed this year authorizing the director to establish in rule a method to fund staff support for all commodity boards and commissions. In accordance with the legislation, the commodity boards or commissions shall provide funds to the department according to the rules. A funding formula for funding the 1/2 FTE by the boards or commissions is established in the proposed rule.

     Proposal does not change existing rules.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required under the provisions of RCW 19.85.025(3) and 34.05.310 (4)(e).

     RCW 34.05.328 does not apply to this rule adoption. The Washington State Department of Agriculture is not a named agency.

     Hearing Location: Department of Natural Resources Building, Room 205, 1111 Washington Street S.E., Olympia, WA 98504-2560, on July 23, 2002, at 10:00 a.m.

     Assistance for Persons with Disabilities: Contact Laurie Crose by July 16, 2002, TDD (360) 902-1996, or (360) 902-1976.

     Submit Written Comments to: Deborah Anderson, Commodity Commission Coordinator, Washington State Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, fax (360) 902-2092, e-mail wsdarulescomments@agr.wa.gov, by 5:00 p.m., July 23, 2002.

     Date of Intended Adoption: August 1, 2002.

June 19, 2002

William E. Brookreson

Deputy Director

CHAPTER 16-501 WAC

WSDA PROCEDURAL RULES -- COMMODITY BOARDS OR COMMISSIONS
NEW SECTION
WAC 16-501-005   Definitions.   Unless the context clearly requires otherwise, the definitions in this section apply throughout the chapter:

     "Assessment level" means the total annual assessment collected by an agricultural commodity board or commission under the provisions of its marketing order or authorizing statute.

     "Department" means the Washington State Department of Agriculture (WSDA).

     "Total financial contribution" means the contributions from all agricultural commodity boards and commissions to cover one-half the annual salary and benefits of the department's commodity commission coordinator for commodity boards and commissions plus the annual costs for goods and services, travel, training and equipment necessary to support the commodity commission coordinator.

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NEW SECTION
WAC 16-501-010   Commodity commission financial contribution.   (1) Under the provisions of RCW 43.23, the director may establish, by rule, a method to fund staff support for all commodity boards and commissions.

     (2) Before July 1 of each fiscal year, the department will determine the total financial contribution required from all commodity boards or commissions and calculate, according to the provisions of WAC 16-501-015, each board or commission's share of that total contribution. The board or commission's contribution shall be based on the previous fiscal year's assessment level.

     (3) On or around July 1 of each fiscal year, the department will bill each commodity board or commission for its portion of the total financial contribution. The board or commission shall remit to the department the amount billed within thirty days of the billing date.

     (4) The department will provide each commodity board or commission with an annual report regarding the department's activities on behalf of the boards or commissions.

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NEW SECTION
WAC 16-501-015   Calculation of a commodity board or commission's contribution.   The total financial contribution for each commodity board or commission shall be calculated using the following steps:

     (1) Step 1 - Using a board or commission's assessment level, the base assessment portion of a commodity board or commission's share of the total financial contribution is established-as follows:


Contribution Categories

Assessment Level Base Assessment
> $100,000 $ 250.00
100,001 - 250,000 500.00
250,001 - 500,000 750.00
500,001 - 1,000,000 1,000.00
1,000,001 - 5,000,000 2,000.00
5,000,001 - 10,000,000 3,000.00
10,000,001 and above 4,000.00

     A percentage is calculated for each board or commission by dividing the board or commission's base assessment by the total base assessment for all boards and commissions.


     For example, assuming Commission A's Base Assessment is $4,000 divided by an assumed Total Base Assessment of $80,000 results in 5% (.05)


     (2) Step 2 - The difference between the total financial contribution and the total base assessment is apportioned to each board or commission using the percentage calculated in subsection (2) subject to a $7,500 cap on any one board or commission;


     For example, assuming a Total Financial Contribution of $105,000 minus the assumed Total Base Assessment of $80,000 results in a difference of $25,000. $25,000 multiplied by Commission A's .05 equals $1,250. This is Commission A's portion of the difference.


     (3) Step 3 - If any commission reaches the $7,500 cap in Step 2, the difference between the amount calculated for that board or commission in subsection (2) and $7,500 would be recalculated among the remaining commissions or boards using a percentage of each commission's base assessment to the total base assessment less the base assessment of the commission that reached the cap.


     For example, assume that Commission A's percentage remains 5% but that the difference between the Total Financial Contribution and the Total Base Assessment is $180,000. $180,000 multiplied by .05 equals $9,000. $9,000 exceeds the $7,500 cap for Commission A by $1,500. This $1,500 would be apportioned between the other boards and commissions excluding Commission A.


     For example, assume that Commission B's base assessment is $3,000. The Total Base Assessment excluding Commission A is now $76,000 ($80,000 less Commission A's $4,000). Commission B's base assessment of $3,000 divided by $76,000 results in .04 rounded (4%). $1,500 (the excess over the cap for Commission A) multiplied by .04 equals $60, which is Commission B's share of the excess.


     (4) Step 4 - A commodity commission or board's contribution is the sum of the base assessment from subsection (1) and the calculations in subsections (2) or (3) whichever is applicable.


     For example, using the calculations in subsection (2), Commission A's contribution is $5,250 ($4,000 base assessment plus $1,250 apportioned share).


     Using the calculations in subsection (3), Commission A's contribution is $11,500 ($4,000 base assessment plus the $7,500 cap).

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