WSR 14-17-117 PROPOSED RULES DEPARTMENT OF AGRICULTURE [Filed August 20, 2014, 9:07 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-05-096.
Title of Rule and Other Identifying Information: WAC 16-401-060 Annual assessment—Grapevines, the agency is proposing to adopt a $.10 per vine annual assessment limit on grapevines as a result of a petition submitted by the Washington Association of Wine Grape Growers. This is not a fee increase.
Hearing Location(s): Washington State Department of Agriculture, 21 North First Avenue, Pest Program Conference Room, 1st Floor, Yakima, WA 98902, on September 23, 2014, at 11:00 a.m.
Date of Intended Adoption: October 7, 2014.
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 September 23, 2014.
Assistance for Persons with Disabilities: Contact Henri Gonzales by September 16, 2014, TTY (800) 833-6388 or 711.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The agency is proposing to amend WAC 16-401-060 to place a $.10 per vine annual assessment limit on grapevines as a result of a petition submitted by the Washington Association of Wine Grape Growers. The current assessment is five percent on the gross sale price of the wholesale market value for all grapevine propagation material. Although, the five percent assessment will remain in effect, this amendment will limit the assessment to $.10 per vine. This will allow Washington nurseries to remain competitive with out-of-state nurseries and provide the same amount of funding for nursery improvement projects.
Reasons Supporting Proposal: The grapevine assessment was initially implemented in 2003 to provide funding for improving the foundation vineyard at Washington State University and to support grapevine improvement projects. The current assessment is five percent on the gross sale price of the wholesale market value for all grapevine propagation material. When the assessment was established, most grapevines were grown on their own roots (rooted cuttings) with an approximate present-day wholesale value of $1-2 per vine. Currently, the grape industry is moving toward grafted grapevines which have a wholesale value of $5 or more per vine. This change in practice results in a higher assessment collected and could essentially put Washington stock at a competitive disadvantage. Putting a $.10 per vine cap on the assessment should ensure the industry remains competitive with other states and provide adequate income to support grapevine related improvement projects.
Statute Being Implemented: RCW 15.13.310 and 15.14.015.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington Association of Wine Grape Growers, private.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Tom Wessels, 1111 Washington Street S.E., Olympia, WA 98504-2560, (360) 902-1984.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposal imposes no additional regulations or costs on Washington businesses. The proposal actually sets a limit on the current assessment which will essentially result in future cost reductions for nurseries.
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).
August 18, 2014
Brad White
Assistant Director
AMENDATORY SECTION (Amending WSR 03-09-112, filed 4/22/03, effective 5/23/03)
WAC 16-401-060 Annual assessment—Grapevines.
As provided in RCW 15.13.310, an annual assessment of five percent, not to exceed $0.10 per grapevine, on the gross sale price of the wholesale market value for all grapevine propagation material produced in Washington, and sold within the state or shipped from the state by any licensed nursery dealer, is established.
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