WSR 05-04-111

PROPOSED RULES

DEPARTMENT OF AGRICULTURE


[ Filed February 2, 2005, 10:21 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 04-19-121.

     Title of Rule and Other Identifying Information: Chapter 16-218 WAC, Hops -- Certification analyses -- Fees, this proposal:

     (1) Increases the fee for submitted sample inspections and certifications;

     (2) Provides for negotiated fees when the lab receives a request for a service for which a fee has not been established;

     (3) Clarifies that fees for chemical analysis apply to all types of hop samples;

     (4) Adds language regarding how the department will handle delinquent accounts and billings; and

     (5) Rewrites the entire chapter to make it easier to read and understand.

     Hearing Location(s): Washington State Department of Agriculture, 21 North 1st Avenue, Conference Room 238, Yakima, WA 98902, on March 10, 2005, at 1:00 p.m.

     Date of Intended Adoption: March 23, 2005.

     Submit Written Comments to: Henri Gonzales, P.O. Box 42560, Olympia, WA 98504-2560, e-mail hgonzales@agr.wa.gov, fax (360) 902-2094, by March 10, 2005.

     Assistance for Persons with Disabilities: Contact Henri Gonzales by March 2, 2005, TTY (360) 902-1996.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department proposes to amend the existing rules by: (1) Increasing the fee above the fiscal growth factor for submitted sample inspections and certification during the 2003 legislative session, the Washington state legislature authorized the Washington State Department of Agriculture to increase fees in excess of the OFM fiscal growth factor in order to ensure that fees charged for services covered the full cost of operating department programs (see chapter 25, Laws of 2003 1st sp.s. (ESSB 5404)); (2) adding language providing for negotiated fees for inspection or certification in the case of alternative methods of packaging hops or other services for which a fee has not been established; (3) clarifying that fees for chemical analysis apply to all types of hop samples; (4) adding language regarding billing for services performed and penalties for delinquent account balances; and (5) rewriting the chapter to increase its readability and clarity.

     Reasons Supporting Proposal: The production and marketing of hops has, and will continue to change as new technologies make the industry more efficient. It has become necessary to meet the changing needs of the hop industry by amending the current rule governing hop certification and inspection.

     Statutory Authority for Adoption: Section 309(2), chapter 25, Laws of 2003 1st sp.s.; chapters 22.09 and 34.05 RCW.

     Statute Being Implemented: Chapter 22.09 RCW.

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

     Name of Proponent: Hop Liaison Committee, governmental.

     Name of Agency Personnel Responsible for Drafting: Mary Toohey, 1111 Washington Street, Olympia, WA 98504-2560, (360) 902-1907; Implementation and Enforcement: Royal Schoen, 21 North 1st Avenue, Suite 106, Yakima, WA 98902, (509) 225-2621.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. RCW 19.85.030 (1)(a) directs an agency to prepare a small business economic impact statement (SBEIS) for proposed rules that impose a more than minor cost on businesses in an industry. The department's rule proposal increases the fee charged for submitted sample testing beyond the Office of Financial Management fiscal growth rate factor. Currently, there are six hop producers in the state that request this service from the department. The department polled all six producers regarding the proposed fee increase. Five producers indicated that they supported the increase; one producer opposes it. Based upon these results the department has concluded that the proposed submitted sample testing fee increase does not impose a more than minor cost on the regulated community and, therefore, is not required to prepare a formal SBEIS.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington State Department of Agriculture is not a listed agency under RCW 34.05.328 (5)(a)(i).

February 2, 2005

Mary A. Martin Toohey

Assistant Director

OTS-7689.3


NEW SECTION
WAC 16-218-015   What fees does the department charge for the certification of hops?   (1) Based upon standards established by the Federal Grain Inspection Service of the United States Department of Agriculture, the Washington state department of agriculture's (department) fees for the certification of hops are:


Type of Inspection and Other Service Fee Charged for Inspection and Other Service
(a) Official lot inspections and certification for baled hops. One dollar and twenty-five cents per bale with a minimum charge of thirty dollars per lot for official inspection and grading with certification.
(b) Official lot inspection and/or certification for alternative methods of packaging hops, or other services for which no fee has been established. A contract fee may be negotiated, based on the agency's costs to furnish the services.
(c) Submitted sample inspections and certification. One hundred fifty dollars for an unofficial sample submitted for grading with certification of a quantity not to exceed 100,000 lbs. of dried hops.
(d) Appeal inspections. The Federal Grain Inspection Service in Portland, Oregon establishes the charges for appeal inspections, and payments for such inspections must be made to them. Department time for sampling, handling and administration regarding appeal inspections will be assessed at the sampler hourly rate.

     (2)(a) Before official sampling of baled hops takes place, each and every bale in a lot of hops must be readily accessible so that:

     (i) Each bale can be properly stenciled; and

     (ii) Samples can be drawn from the bales selected by the inspector.

     (b) Official samples drawn from baled hops must be brought back to the laboratory by the inspector for grading analysis.

     (3) The department may perform official lot inspection and/or certification of hops packaged by alternative methods (e.g., hops not baled prior to processing) subject to conditions specified in a written agreement between the department and the person(s) requesting the service.

     (4)(a) Submitted samples provided by a grower or dealer for grading analysis must be representative of the lot(s) and the hop material.

     (b) Submitted samples are delivered to the laboratory.

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NEW SECTION
WAC 16-218-025   What does the department charge for chemical analysis regarding brewing values and additional constituents in raw hops, hop extract, hop pellets and hop powder?   (1) Before official sampling of baled hops takes place, each and every bale in a lot of hops must be readily accessible so that:

     (a) Each bale can be properly stenciled (not done for brewing value only sampling); and

     (b) Samples can be drawn from the bales selected by the inspector.

     (2) Official samples drawn from baled hops must be brought back to the laboratory by the inspector for chemical analysis, simultaneous with grading analysis.

     (3) Brewing value samples are obtained from a representative composite of the official samples drawn for grade analysis.

     (4) Brewing value samples not sampled simultaneously for grade analysis will be charged at the same fee per bale.

     (5) When department personnel officially sample hops, a brewing value certificate will be issued when the chemical analysis is done.

     (6)(a) Submitted brewing value samples provided by a grower or dealer for chemical analysis must be representative of the lot(s).

     (b) Submitted samples are delivered to the laboratory.

     (7) Submitted brewing value certificates will be issued for submitted samples when the chemical analysis is done.

     (8) Department fees for the chemical analyses of officially sampled raw hops are:


Type of Analyses Fee Minimum Fee
(a) ASBC spectrophotometric with moisture $0.35 per bale $30.00 per sample
(b) ASBC spectrophotometric/conductometric or EBC conductometric without moisture $0.30 per bale $30.00 per sample
(c) Mebak, Zurich, Verzele, Ganzlin, or conductometric $0.60 per bale $60.00 per sample

     (9) Department fees for chemical analyses of submitted raw hops, hop extract, hop pellets or hop powders are:


Type of Analyses Fee
(a) ASBC spectrophotometric $30.00
(b) ASBC conductometric $30.00
(c) EBC conductometric $30.00
(d) EBC conductometric (Wollmer, Zurich, Mebak, Verzele, Ganzlin, or Resins (hard or soft)) $60.00
(e) Spectrophotometric of tannins, Wollmer, etc. $55.00
(f) Methylene chloride $80.00
(g) Tannin $55.00
(h) Ash $20.00
(i) SO2 $25.00
(j) H2O $10.00
(k) HPLC $100.00
(l) Total oil $25.00
(m) Oil constituents analysis $145.00
(n) Wort test, particle size $10.00

     (10)(a) The department will assess hourly charges for analytical chemistry work if no other fee has been established.

     (b) Hourly charges are set by written agreement and shall be based on the costs incurred to conduct the analysis, such as:

     • Labor

     • Laboratory equipment

     • Chemicals and materials

     • Administration and overhead.

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NEW SECTION
WAC 16-218-035   What does the department charge for issuing export certificates for hops and hop products?   The department charges the following fees for issuing certificates related to hops and hop products:


Type of Certificate Fee for Each Certificate
(1) State phytosanitary certificates $25.00
(2) Other certificates attesting to origin, compliance with standards of other states or nations or specifications of contracts, or conditions of production or processing $20.00

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NEW SECTION
WAC 16-218-040   When are the fees and charges required by this chapter due to the department?   (1) The department will bill you for the services it renders.

     (2) The fees and charges billed to you are due to the department within thirty days of the statement date.

     (3) If the department does not receive your payment within thirty days of the statement date, the department may:

     (a) Withhold its services from you until your delinquent account is paid; and

     (b) Accept only cash payments from you for future services rendered.

     (4) The department assesses a penalty of twelve percent per annum on all delinquent account balances.

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REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 16-218-010 Schedule of fees for physical grading.
WAC 16-218-02001 Schedule of charges for chemical analyses of hops, hop extract, hop pellets or hop powder.
WAC 16-218-030 Schedule of fees for certificates.

© Washington State Code Reviser's Office