WSR 16-08-112 PROPOSED RULES DEPARTMENT OF AGRICULTURE [Filed April 5, 2016, 2:38 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-05-074.
Title of Rule and Other Identifying Information: The department is proposing amendments to chapter 16-240 WAC, WSDA grain inspection program—Definitions, standards, and fees to address the fee structure in consideration of workload variables that contribute to variability in the fund balance, and to make modifications to update the chapter and make it more usable.
Hearing Location(s): Spokane County Extension Education Center, Conference Room E (downstairs), 222 North Havana, Spokane, WA 99202-4776, on May 10, 2016, at 1:00 p.m.; and at the Natural Resources Building, 1111 Washington Street S.E., Conference Room 172, First Floor, Olympia, WA 98504-2560, on May 11, 2016, at 1:00 p.m.
Date of Intended Adoption: May 25, 2016.
Submit Written Comments to: Henri Gonzales, Rules Coordinator, 1111 Washington Street S.E., P.O. Box 42560, Olympia, WA 989504-2560 [98504-2560], e-mail wsdarulescomments@agr.wa.gov, phone (360) 902-1802, fax (360) 902-2092, by 5:00 p.m., Wednesday, May 11, 2016.
Assistance for Persons with Disabilities: Contact Jeff Larsen by May 3, 2016, TTY (800) 833-6388 or 711.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules:
Reasons Supporting Proposal: The grain inspection program is supported entirely by fees. The department is amending the fee structure to ensure the grain fund is sufficient to support the program without generating an unnecessarily high balance. These amendments also update the chapter and make it more usable. In addition, under RCW 19.85.061 these rules are being adopted to comply with federal law under the program's status as a USDA GIPSA FGIS delegated agency.
Statute Being Implemented: RCW 22.09.020.
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: Philip Garcia, 1111 Washington Street, Olympia, WA 98504-2560, (360) 902-1921.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The Washington state department of agriculture has analyzed costs related to this rule making and has determined that there are no significant impacts to small businesses.
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).
April 5, 2016
Jason Ferrante
Assistant Director
Commodity Inspection
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-010 Definitions.
"Department" means the Washington state department of agriculture.
"Federal fiscal year" means October 1st through September 30th for GIPSA, FGIS.
"Fee" means any charge made by the department for:
(1) Inspecting and handling any commodity; or
(2) Any service related to weighing or storing grains or commodities.
"Fiscal year" means July 1st through June 30th for the state of Washington.
"GIPSA, FGIS" means the United States Department of Agriculture, Grain Inspection, Packers and Stockyards Administration, Federal Grain Inspection Service.
"Metric ton" means two thousand two hundred four and six-tenths pounds.
"Minimum operating fund balance" or "MOFB" means six months of grain inspection program operating expenses.
"Official commercial inspection services" means a contractual agreement between the applicant and the department for services specified by the applicant that will be provided at an applicant's facility.
"Revenue minimum" means the amount of revenue that must be collected by the department to offset expenses. In order to act as an official inspection agency under the United States Grain Standards Act and the Agricultural Marketing Act of 1946, the program must collect revenue to offset expenses. The grain inspection program is supported entirely by the fees it generates from the services it provides as required by RCW 22.09.790. The circumstances under which charges occur to collect the revenue minimum are stated in WAC 16-240-038.
"Service point" means the Washington state department of agriculture offices and surrounding service areas authorized by the Federal Grain Inspection Service to provide sampling, inspecting, weighing, and certification services.
"Shift" means an established period of staffing for up to twelve hours at transloading facilities or up to eight hours at export port or domestic service point locations. Service requests in excess of the established period would require requesting an additional shift. Any work beyond the established shift period constitutes an additional shift.
"Unstaffed export locations" means a facility that does not have a permanent staffing request in place for day, night, swing, or graveyard shifts.
"USDA" means the United States Department of Agriculture.
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-020 Washington state grain and commodity service points.
The offices located in the following cities are service points for providing sampling, inspecting, weighing, and certification services.
(1) Service points:
(a) Colfax.
(b) Kalama (North).
(c) Kalama (South).
(d) Longview.
(((d))) (e) Olympia.
(((e))) (f) Pasco.
(((f))) (g) Seattle.
(((g))) (h) Spokane.
(((h))) (i) Tacoma.
(((i))) (j) Vancouver.
(2) Aberdeen has been delegated to Washington state as a service point by the Federal Grain Inspection Service. Services for Aberdeen are as follows:
(a) Services for Aberdeen may be requested through the Tacoma grain inspection office.
(b) Travel time and mileage will be assessed from Tacoma to Aberdeen for all services requested at Aberdeen until a permanent staff is established.
(3) Inspection points may be added or deleted within the department's delegated and designated service area.
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-038 Revenue minimum ((fee process)) determination.
The circumstances under which the department ((may assess)) assesses additional charges to meet the revenue minimum are as follows:
(1) When the daily volume of work at a service location at the established fees does not generate revenue at least equal to the straight time hourly rate per hour, per employee, a sufficient additional amount, calculated by using the straight time hourly rate per hour, per employee, will be added to the established fee amount to meet the revenue minimum.
(2) The daily revenue minimum assessment applies only to the regular metric tonnage rate shown in USGSA Table 1 of this schedule. When the alternate rate is in effect (WAC 16-240-043 and 16-240-070), export locations will not be subject to daily revenue minimum assessments for the balance of the alternate rate period allowed under WAC 16-240-043.
(3) Work volume daily averaging at export locations will be determined as follows:
(a) When the ((weekly)) daily volume of work at a service location at the established fees does not generate revenue equivalent to the straight time hourly rate per hour, per employee, including applicable supervisory and clerical employee hours, according to the staffing needs at the facility, the department ((may)) charges an additional fee, as described in subsection (1) of this section. ((The weekly volume will be based on the applicable shift from Monday through the following Monday.))
(b) The straight time hourly rate will be assessed per hour, per employee.
(c) Service cancellation fees, WAC 16-240-054, are not considered to be revenue under ((weekly)) daily averaging.
(4) Work volume monthly averaging at export locations will be determined as follows:
(a) When the applicant has requested the department to establish one or more permanent shifts, the applicant may request, in writing, that the revenue minimum required for staffing at the location be determined based on the completed invoices for the calendar month, instead of paying the fees for daily volume of work.
(b) When the monthly volume of work at the established fees does not generate revenue equivalent to the straight time hourly rate per hour, per employee, including applicable supervisory and clerical employee hours, the department charges an additional fee, as described in subsection (1) of this section.
(c) At export locations, the request for monthly averaging stays in effect until canceled.
(d) An applicant's written request to establish or cancel monthly averaging for the coming month must be received by 2:00 p.m. of the last business day in the month.
(e) Service cancellation fees under WAC 16-240-054 are not considered to be revenue under monthly averaging.
(f) The monthly revenue minimum assessment applies only to the standard monthly tonnage rate shown in USGSA Table 1 of this schedule. When the alternate rate is in effect, export locations will not be subject to daily revenue minimum assessments during the alternate rate period allowed under WAC 16-240-043.
(i) Upon the applicant's written notification to the department, the monthly revenue minimum will not be applied to the month in which an export facility resumes operations after an extended downtime. This exception for maintenance or repair is available once per fiscal year.
(ii) When the department provides services at a nonexport location or a transloading facility, and the hourly, unit, and applicable travel fees do not cover the cost of providing the service, an amount at least equal to the straight time hourly rate per hour, per employee, calculated by using the straight time hourly rate per hour, per employee, will be added to the established fee amount to meet the revenue minimum.
NEW SECTION
WAC 16-240-039 USDA, GIPSA, FGIS administrative fee.
The United States Department of Agriculture, Grain Inspection, Packers and Stockyards Administration, Federal Grain Inspection Service assesses a per metric ton administrative fee for export and other grain handled by facilities in the Washington state department of agriculture service area.
(1) Washington state department of agriculture will invoice and collect GIPSA's administrative fee at the current GIPSA tonnage calculation or charge on behalf of GIPSA and will pass through the assessment to GIPSA, FGIS.
(2) Washington state department of agriculture will assess the federal fiscal year administrative rate established by GIPSA, FGIS under the guidelines established by GIPSA for collecting the fee.
(3) The fee assessments under this chapter do not include the GIPSA assessment.
AMENDATORY SECTION (Amending WSR 05-11-058, filed 5/17/05, effective 6/17/05)
WAC 16-240-040 Official commercial inspection services.
The department may provide on-site official commercial inspection services, at the applicant's request, when all of the following conditions are met:
(1) ((Appropriate)) As applicable under 7 C.F.R. § 800.46, appropriate space((, equipment)) and security must be provided by the applicant.
(2) The applicant must provide a written document fully describing the services requested. The applicant must fully describe the requested services in writing so the department can determine appropriate staffing levels and develop a guarantee of expenses proposal.
(3) The department must be able to provide appropriate licensed personnel to accomplish the service requested.
(4) ((A guarantee of expenses)) An adequate provision for fees is negotiated.
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-043 Minimum operating fund ((discount)) balance fee adjustment.
(((1) The fund balance will be evaluated by July 1st of every even numbered year. If the fund exceeds the minimum balance by at least five percent, the excess will be prorated as a future discount to those customers who paid for services during the previous three calendar years. If an excess operating fund balance exists, the director or designee will authorize the program to apply the discount to qualified customers on a monthly basis at the time of future service billings during the next calendar year.
(2) The discount will be made available to qualified customers as follows. The department will establish the percent of discount available to qualified customers as based on each customer's fees paid over the previous three calendar years in relation to the total amount determined to be in excess of the revenue minimum. During the discount calendar year, each qualified customer will be entitled to receive a discount in the amount of one-twelfth of its total potential discount amount during each month that it incurs fees. No discount will be available in excess of the total fees charged in any month. No discount will accrue if not used during any month of the applicable calendar year.)) The department shall establish the minimum operating fund balance amount on the first business day of July each year.
(1) At that time, if the fund balance is above the new minimum operating fund balance amount by at least ten percent, the metric ton vessel rate and the approved automated weighing system rate per metric ton under WAC 16-240-070 at USGSA Table 1 shall be the alternate fee rate beginning August 1st of that year, and the metric ton vessel rate and the approved automated weighing systems rate per metric ton under WAC 16-240-080 at AMA Table 1 shall be the alternate fee rate beginning August 1st of that year.
(2) At that time, if the minimum fund balance is below the new minimum operating fund balance by at least ten percent, the metric ton vessel rate and the approved automated weighing systems rate per metric ton under WAC 16-240-070 at USGSA Table 1 shall be the standard fee rate beginning August 1st of that year, and the metric ton vessel rate and the approved automated weighing systems rate per metric ton under WAC 16-240-080 at AMA Table 1 shall be the standard fee rate beginning August 1st of that year.
(3) The department may review the status of the minimum operating fund balance any month during each fiscal year. On the first business day of the month following such review, if the fund balance is above the minimum operating balance by at least ten percent, the alternate fee rate established or to be established under subsection (1) of this section shall apply. If the fund balance is below the minimum operating fund balance by at least ten percent, the standard fee rate established or to be established under subsection (2) of this section shall apply. Any change in the fee rates required under this subsection shall take effect beginning the first day of the following month. The department shall give notice of any rate change as provided under subsection (5) of this section.
(4) The department shall post notice of each year's current minimum operating fund balance amount on the department's WSDAgrades.com web site within three business days of the date in July when that amount is established under this section.
(5) The department shall post notice of the fee rate established under subsection (1), (2), or (3) of this section on the department's WSDAgrades.com web site within three business days of the date the department determines the fee rate. The posted notice shall identify the fee rate for each affected category of service and the date each fee rate takes effect. Notice is not required to be posted when an established fee rate does not change following review under subsection (3) of this section.
(6) By e-mail or other means, the department may provide optional additional notice to current customers and to any other interested persons of the minimum operating fund balance established under this section and notice of any fee rates established or changed under subsections (1) through (3) of this section. Such optional additional notice should be given within the same times as the required notices under subsections (4) and (5) of this section. This subsection (6) shall not affect the validity of any fee rates established or changed under this section.
AMENDATORY SECTION (Amending WSR 05-11-058, filed 5/17/05, effective 6/17/05)
WAC 16-240-044 GIPSA, FGIS scale authorization.
The United States Department of Agriculture, Grain Inspection, Packers and Stockyards Administration, Federal Grain Inspection Service (USDA, GIPSA, FGIS) has delegated official scale testing and scale authorization authority to the department.
(1) The GIPSA, FGIS scale authorization fee established in WAC 16-240-060, per hour, per employee is assessed when GIPSA, FGIS scale authorization services are performed.
(2) In addition to the hourly GIPSA, FGIS scale authorization fee; the department may assess travel time at the scale authorization hourly rate, mileage beyond ten miles from the scale specialist's assigned office location, per diem, or overtime, if applicable.
(3) All scales in Washington state under USDA, GIPSA, FGIS jurisdiction must comply with the following testing requirements:
(a) Scales must be tested and certified for accuracy at least twice each year by an authorized Washington state department of agriculture scale specialist or a USDA, GIPSA, FGIS scale specialist.
(b) When tested by the department or by USDA, GIPSA, FGIS, a seal must be placed on the scales. This seal must be dated and must indicate approval or rejection.
(c) When scales are tested, copies of the test report must be:
(i) Forwarded to USDA, GIPSA, FGIS;
(ii) Maintained by the department; and
(iii) Maintained at the facility where the scale is located.
(4) The scale authorization fee is assessed in one-half hour increments.
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-046 Straight time rate.
The straight time hourly rate is assessed as cited below.
(1) An hourly fee is specified in the schedule ((of fees)) adopted under this chapter.
(2) ((No other fee is established in the schedule of fees.
(3))) The revenue minimum under WAC 16-240-038 applies.
(((4) The revenue minimum required for staffing at export locations determined on a weekly basis under WAC 16-240-038 applies.
(5))) (3) No contractual agreement supersedes the straight time rate other than official commercial inspection services provided under WAC 16-240-040.
(((6))) (4) Straight time is assessed in one-half hour increments.
AMENDATORY SECTION (Amending WSR 05-11-058, filed 5/17/05, effective 6/17/05)
WAC 16-240-048 Rates for working outside established business hours (overtime).
In addition to regular inspection and weighing fees and any applicable hourly fees, the department will charge the overtime rate per hour, per employee, including applicable supervisory and clerical employee hours, when a service is requested:
(1) Anytime on Saturdays, Sundays, or holidays.
(2) Before or after regularly scheduled office hours, Monday through Friday, except as provided in WAC 16-240-036 for an established permanent staffing request.
(3) During established meal periods on any shift.
(4) For services requested at unstaffed export locations.
(5) Overtime is assessed in one-half hour increments.
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-054 Service cancellation fee.
A service cancellation fee applies when service is requested and then canceled ((or not performed)).
(1) When ((a)) an applicant requests a shift to provide service ((is requested)) before or after the inspection office's established hours, a cancellation fee ((would apply)) applies as follows:
(a) When a service is requested before or after an office's standard Monday through Friday shifts, or anytime on Saturdays, Sundays, or holidays; and
(b) The requested service is canceled after 2:00 p.m. of the last business day before the requested service; then
(c) A service cancellation fee according to WAC 16-240-060, Table 1, will be assessed per employee scheduled.
(2) When service is requested for a vessel inspection, a cancellation fee ((would apply)) applies as follows:
(a) When a vessel inspection is requested and then canceled after 2:00 p.m. of the last business day before the requested service((, a cancellation fee will apply.)); and
(b) The service cancellation fee will be assessed per employee scheduled to inspect the vessel.
(3) When a facility has an approved permanent staffing request letter in place for the day, night, swing, or graveyard shift, the department waives the cancellation fee for the permanently staffed shift.
NEW SECTION
WAC 16-240-056 Fees for dedicated staff time.
The department provides administrative and consultation services and related assistance to an applicant for service that is establishing a new facility or renovating an existing facility when those services can be provided within the department's established staffing and normal course of business. When dedicated staff time is required to assist an applicant for service to establish or renovate a facility, the following fees apply.
(1) When dedicated staff time is required by an applicant for service to establish or renovate a facility, the department will charge the applicable hourly rates established in WAC 16-240-060.
(2) When dedicated staff time is required to add automated systems to a facility or to resolve systems installation or operation issues, the department will charge the applicable hourly rates established in WAC 16-240-060.
(3) When dedicated staff time is required, the department will charge the applicable travel fees established in WAC 16-240-050.
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-060 WSDA grain program hourly and cancellation fees ((for service)).
USGSA—AMA—WSDA Table 1 contains fees for GIPSA, FGIS scale authorization, straight-time hourly rate, overtime hourly rate, and service cancellation fees for services performed under the United States Grain Standards Act, the Agricultural Marketing Act of 1946, and Washington state rule.
USGSA—AMA—WSDA Table 1
WSDA Grain Program Hourly and Cancellation Fees ((for Service))
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-070 Fees for services under the United States Grain Standards Act.
(1) USGSA Tables 1 through 7 in this section contain fees for official sampling ((and/or)), inspection ((and/or)), weighing services, and fees for other associated services under the United States Grain Standards Act (USGSA). Services available include inspection, sampling, testing, weighing, laboratory analysis, and certification.
(2) Fees that are not otherwise provided for in this chapter for services under the United States Grain Standards Act are described below.
(a) Fees for other services under the United States Grain Standards Act not specifically cited in WAC 16-240-070 are provided at the rates contained in WAC 16-240-080 or 16-240-090 or at the published rates of the laboratory or organization providing the official service or analysis. The program will require the ((recipient of)) applicant for service((s)) to provide advance consent to the rate for any service necessary to be performed at an external laboratory or organization.
(b) An applicant may be required to provide the necessary supplies and equipment when requesting a new or special type of analysis.
USGSA Table 1
Fees for Combination Inspection and Weighing Services
USGSA Table 2
Fees for Official Sampling and Inspection Without Weighing Services
USGSA Table 3
Fees for Official Class X Weighing Services Without an Inspection of Bulk Grain
USGSA Table 4
Fees for Inspection of Submitted Samples, Fees for Reinspections Based on Official File Samples and Fees for Additional Factors
USGSA Table 5
Fees for Official Analysis for Protein, Oil, or Other Official Constituents
USGSA Table 6
Fees for Testing for the Presence of Mycotoxins Using USDA Approved Methods
USGSA Table 7
Fees for Stowage Examination Services on Vessels or Ocean-Going Barges and Fees for Other Stowage Examination Services
AMENDATORY SECTION (Amending WSR 12-21-064, filed 10/17/12, effective 11/17/12)
WAC 16-240-080 Fees for services under the Agricultural Marketing Act of 1946.
(1) AMA Tables 1 through 5 in this section contain official sampling and/or inspection and/or weighing services and fees for other services under the Agricultural Marketing Act of 1946 (AMA). Services available include inspection, sampling, testing, weighing, laboratory analysis, and certification.
(2) Fees that are not otherwise provided for in this chapter for services under the Agricultural Marketing Act of 1946 are described below.
(a) Fees for other services under the Agricultural Marketing Act of 1946 not contained in WAC 16-240-080 are contained in WAC 16-240-070 or 16-240-090 and/or at the published rates of the laboratory or organization providing the official service or analysis.
(b) An applicant may be required to provide the necessary supplies and/or equipment when requesting a new or special type of analysis.
AMA Table 1
Fees for Combination Sampling, Inspection and Weighing Services, and Additional Factors
AMA Table 2
Fees for Official Sampling and Inspection Without Weighing Services, and Additional Factors
AMA Table 3
Fees for Official Weighing Services without Inspections
AMA Table 4
Fees for Inspecting Submitted Samples
AMA Table 5
Fees for Miscellaneous Services
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