PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 05-02-004.
Title of Rule and Other Identifying Information: Chapter 16-730 WAC, Asparagus equipment leasing program.
Hearing Location(s): Department of Agriculture, Natural Resources Building, 1111 Washington Street S.E., 2nd Floor, Room 271, Olympia, WA 98504-2560, on June 21, 2005, at 2:00 p.m.
Date of Intended Adoption: June 28, 2005.
Submit Written Comments to: George Huffman, Department of Agriculture, 1111 Washington Street S.E., P.O. Box 42560, Olympia, WA 98504-2560, e-mail ghuffman@agr.wa.gov, fax (360) 902-2092, by 5:00 p.m., June 21, 2005.
Assistance for Persons with Disabilities: Contact Virginia Walsh by June 13, 2005, TTY (360) 902-1976.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of the proposed chapter 16-730 WAC, Asparagus equipment leasing program, is to implement chapter 276, Laws of 2004 (ESHB 2459) by providing for the purchase of automated labor saving equipment that will strengthen the fresh, frozen or pickled after harvest asparagus industry.
Reasons Supporting Proposal: The proposed permanent rules should be supported because:
(1) They implement section 308(10), chapter 276, Laws of 2004 (ESHB 2459), which directed the department to:
(a) Purchase agricultural products packing equipment; and
(b) Negotiate an appropriate agreement with the agricultural industry for the use of that equipment.
(2) They also implement RCW 15.04.402, which authorizes the department to enhance, protect, and perpetuate the ability of the private sector to produce food and fiber and maintain the economic well being of the Washington state agricultural industry.
Statutory Authority for Adoption: RCW 15.04.402, chapter 276, Laws of 2004 (ESHB 2459) and chapter 34.05 RCW.
Statute Being Implemented: Chapter 15.04 RCW and chapter 276, Laws of 2004 (ESHB 2459).
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington State Department of Agriculture, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Greg Wright, Olympia, (360) 902-1918.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Apart from the time required to complete the program application, which the department does not consider a "more than minor" cost, the proposed rules will not impose any costs on program participants. In fact, the purpose of the program is to help ensure the survival of the Washington state asparagus industry.
A cost-benefit analysis is not required under RCW 34.05.328. The Washington State Department of Agriculture is not a listed agency in RCW 34.05.328 (5)(a)(i).
May 18, 2005
William E. Brookreson
Deputy Director
OTS-8049.2
ASPARAGUS EQUIPMENT LEASE PROGRAM
(2) The asparagus equipment lease program allows Washington state packers and handlers of Washington asparagus to lease with an opportunity to purchase automated labor saving equipment that will strengthen their post-harvest efforts to efficiently handle or pack fresh, frozen or pickled asparagus.
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(1) Certifying that the leased equipment is being used for the program's intended purpose; and
(2) Summarizing the cost and labor savings for that year.
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"Approved handler/packer" means any asparagus handler and/or packer who has submitted an equipment leasing program application to the department and has been approved by the department to participate in the program.
"Automation" means the technique and equipment used to bring about automatic operation and control of a process.
"Department" means the Washington state department of agriculture.
"Director" means the director of the Washington state department of agriculture or the director's designee.
"Handler/packer" means a person who sells, arranges for sale, represents, processes, distributes or packages fresh, frozen or pickled asparagus.
"Facility" means any place where fresh asparagus is prepared, handled and packaged as fresh, frozen, or pickled for sale.
"Labor saving" means actions, activities or processes designed to decrease the amount of human labor needed to prepare, handle or package fresh, frozen or pickled asparagus.
"Leasing" means to obtain the use of asparagus handling or packing equipment through the asparagus equipment leasing program.
"Packing equipment" means equipment associated with the activities of the post-harvest handler/packer of fresh, frozen or pickled asparagus.
"Person" means an individual, firm, partnership, corporation, or association engaged in handling and/or packing fresh, frozen or pickled Washington state asparagus.
"Program administrator" means the director of the Washington state department of agriculture or the director's designee.
"Review committee" means a group of five to seven people representing the department and the Washington asparagus commission staff and members and one at large agricultural representative who is neither directly affiliated with the asparagus industry nor any of the equipment leasing program applicants. The purpose of the committee is to review equipment leasing program applications.
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(1)(a) Pack a minimum of 250,000 pounds of fresh, frozen or pickled asparagus in Washington in the calendar year in which they apply; and
(b) Provide documentation verifying the 250,000 pounds. Verification can include asparagus commission assessments or other industry accepted documentation.
(2) Comply with all applicable federal, state, and local laws and rules related to doing business in Washington and handling food products.
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Asparagus Leasing Program
Washington State Department of Agriculture
1111 Washington St. S.E., 2nd Floor
P.O. Box 42560
Olympia, WA 98504-2560
(2) Eligible applicants must complete the program application and provide the department with the following information:
(a) Verification consistent with normal and usual leasing agreements that their business is a going concern;
(b) Verification that they have the ability to adequately insure any equipment they may lease;
(c) A statement declaring their eligibility and intent to participate in the program;
(d) Documentation of their ability to provide the necessary upkeep and maintenance of any equipment they may lease;
(e) A description of the equipment to be leased and its cost;
(f) A description of how the leased equipment will automate their post-harvest operation and how it will reduce post-harvest labor costs; and
(g) The pounds of asparagus processed for the period of years identified on the application and documentation verifying the pounds processed.
(3) The completed application and the related information (subsection (2) of this section) must be submitted to:
Asparagus Leasing Program
Washington State Department of Agriculture
1111 Washington St. S.E., 2nd Floor
P.O. Box 42560
Olympia, WA 98504-2560
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(2) The process for reviewing and approving application is as follows:
(a) The review committee will review all applications and recommend approved applicants to the director.
(b) The director will review the review committee's recommendations.
(c) Once the director approves the recommended applicants, applicants will be notified of the results within five working days of the director's decision.
(3) The department may implement additional application cycles as needed in order to insure that handler/packers may fully participate in the program.
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(a) Specify the date of the decision or action being appealed;
(b) Explain as precisely as possible the issue to be resolved by the administrative review;
(c) Include the address of the applicant; and
(d) Be signed by the applicant.
(2) Administrative reviews of denied applications will follow an informal process conducted by the director's designee.
(a) The review will be completed within thirty days after receipt of the review request.
(b) Once the review is completed, the department has ten days to inform the handler of the review decision.
(3) The rights of the department provided in this section are exclusive and are in addition to any other rights and remedies provided by law.
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(2) Applicants must reapply by following the procedures outlined in WAC 16-730-025.
(3) When reapplying, the applicant must request different equipment and/or a different mix of equipment from that listed on their original application.
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(1) The department, in consultation with the Washington asparagus commission, the Washington asparagus council and the asparagus industry at large, will determine the amount of equipment leasing money allocated to each approved applicant and then distribute this money to a department approved equipment leasing company.
(2) The approved leasing company will then purchase the equipment and subsequently lease it to an approved applicant.
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| Note: | If additional application cycles are needed to administer current and future equipment lease allocations and distributions, the department may adjust the initial four-year annual average production period (2001-2004). |
(b) If the department does change the allocation formula, it will notify the Washington state asparagus industry and, specifically, Washington state asparagus handler/packers.
(3) The department has developed the following categories to help allocate the equipment lease program's initial 2004 offering:
| Handler/Packer Categories* | Pounds of Asparagus Handled Annually |
| Small | Less than 1,000,000 pounds |
| Medium | 1,000,000 to 2,000,000 pounds |
| Large | 2,000,001 to 5,000,000 pounds |
| *Note: These categories could change. If they do, the department will notify asparagus handler/packers and the industry. | |
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| Note: | The department will always work with the review committee to assure that the distributions to approved applicants are fair and equitable and based on the pounds processed formula. |
| Handler/Packer Size | Dollar Allocation per Handler/Packer |
| Small | $87,000.00 |
| Medium | $110,500.00 |
| Large | $154,500.00 |
(a) Amount of program funds available after all administrative and contract-leasing costs are subtracted from the total program allocation received from the legislature; and
(b) Number of participants in the program; and
(c) Department consultations with the Washington asparagus commission, the Washington asparagus council and the asparagus industry at large.
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(2) All approved handler/packers will complete a lease agreement with the department approved leasing firm.
(3) All equipment lease agreements:
(a) Must be exclusive to the approved handler/packers for the term of the contract with the leasing company; and
(b) Are not transferable without the written approval of the department.
(4) Lease agreements cannot be paid off before the leasing company's contract termination date.
(5) In addition to the leasing requirements contained in this chapter, the department, in its contract with the leasing company, will include other lease requirements that approved handler/packers must follow.
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(2) The selection process used by the department to redistribute defaulted lease equipment to approved handler/packers must comply with any applicable state and federal laws and regulations.
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(a) An office of financial management (OFM) approved depreciation schedule for each type of equipment that will be available for leasing; and
(b) The period of time needed to:
(i) Surplus and transfer equipment; and
(ii) Complete program closeout activities.
(2) For any distributions following the initial one, the department may modify the program length, depreciation schedules, contract requirements or leasing agreements.
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(2) If a handler/packer wants to sell their leased equipment to a designee, they must complete a designee form and have the form approved by the department.
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