SENATE BILL REPORT

                                    SB 5626

         AS REPORTED BY COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES,

                                 MARCH 4, 1991

Brief Description:  Revising provisions relating to the hardwood commission.

SPONSORS:Senators McMullen, Amondson and Snyder; by request of Washington Hardwoods Commission.

SENATE COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES

Majority Report:  That Substitute Senate Bill No. 5626 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Metcalf, Chairman; Oke, Vice Chairman; Amondson, Barr, Conner, Owen, Patterson, Snyder, and Sutherland. 

Staff:  Vic Moon (786‑7469)

Hearing Dates:February 19, 1991; March 4, 1991

BACKGROUND:

In 1990, the Legislature authorized the creation of a Washington Hardwoods Commission to foster the growth and development of the hardwood industry in Washington.  The enabling statute for the commission is similar to the statutes of the numerous agriculture commodity commissions such as the Apple Commission.  The Legislature asked the commission to prepare an assessment schedule.  That schedule was to be based on an assessment of businesses who process hardwood.

SUMMARY:

The members of the Hardwoods Commission are authorized travel and expenses at the same rate allowed for state employees. 

An assessment on hardwoods is created.  At the first sale of hardwood, the assessment will be 25 cents per 1,000 board feet Scribner scale or 25 cents per green ton Scribner scale.  There will be no assessment for amounts less than 100,000 board feet.

The assessments will be remitted quarterly to the commission starting January 1, 1992.  The unpaid assessment will be considered past due after 45 days. 

EFFECT OF PROPOSED SUBSTITUTE:

An assessment on processors is established based on quarterly production by weight.  The commission may develop formulas to convert other measurements to tons of production.  The assessments will begin July 1, 1991.  The board will receive travel and expenses.  Language requiring a 1990 report to the Legislature is eliminated.

Assessments made by the commission are personal debts and if a person fails to pay, the commission may add up to 10 percent of the assessment to defray costs of enforcement.  Civil action by the commission may be brought against persons who fail to pay.

Appropriation:  none

Revenue:  yes

Fiscal Note:  requested

Effective Date:  The bill contains an emergency clause and takes effect immediately.

TESTIMONY FOR:

The assessment scheme fulfills the Legislature's request for the commission to develop an equitable funding source.

TESTIMONY AGAINST:  None

TESTIFIED:  Lawrence Johnson, Washington Hardwoods Commission; Richard Junk, Washington Forest Protection Association; Terry Raettig, Governor's Timber Team; Kay Eichenger, Department of Community Development