Z-1305

AN ACT Relating to milk producers and distributors and food processors; amending RCW 15.36.080, 69.07.040, 69.07.050, and 69.07.120; adding new sections to chapter 15.36 RCW; and adding a new section to chapter 69.07 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 15.36 RCW to read as follows:

(1) The legislature finds that an adequate dairy inspection program administered by the department of agriculture is essential for the protection of the public health and to maintain the marketability of milk and milk products within the state and in out-of-state markets. The legislature finds that sharing the costs of the program as well as the benefits between the public and the regulated industry is justified in order to maintain an adequate program.

(2) This section shall expire June 30, 1995.

NEW SECTION. Sec. 2. A new section is added to chapter 15.36 RCW to read as follows:

(1) There is levied on all milk produced in this state an assessment not to exceed one cent per hundredweight. The maximum total assessment shall not exceed one thousand five hundred dollars per grade over a one-year period. The director shall determine, by rule, an assessment, that with contribution from the general fund, will support an inspection program to maintain compliance with the provisions of the national conference on interstate milk shipment. All assessments shall be collected by the operator of the first milk plant receiving the milk and shall be deducted from the amount due the producer. Milk producers who are also milk distributors shall remit the assessment directly to the director. All moneys collected under this provision shall be paid to the director by the twentieth day of the succeeding month for the previous month's collections. The director shall deposit the funds into the dairy inspection account within the agricultural local fund established in RCW 43.23.230. The funds shall be used only to provide inspection services to the dairy industry. All interest accrued on the account shall be credited to the dairy inspection program. If the operator of a milk plant or a producer who acts as a distributor fails to remit any assessments or fails to make deductions for assessments, that sum shall be a lien on any property owned by him or her, and shall be reported by the director and collected in the manner and with the same priority over other creditors as prescribed for the collection of delinquent taxes under chapters 84.60 and 84.64 RCW.

(2) This section shall expire June 30, 1995.

NEW SECTION. Sec. 3. A new section is added to chapter 15.36 RCW to read as follows:

(1) There is created a dairy inspection program advisory committee. The committee shall consist of nine members. The committee shall be appointed by the director from names submitted by dairy producer organizations or from handlers of milk products. The committee shall consist of six members who are producers of milk or their representatives, and two members who are handlers or their representatives, and one member who must be a producer-handler.

(2) The purpose of this advisory committee is to assist the director by providing recommendations regarding the dairy inspection program, that are consistent with the pasteurized milk ordinance. The advisory committee shall (a) review and evaluate the program including the efficiency of the administration of the program, the adequacy of the level of inspection staff, the ratio of inspectors to number of dairy farm inspections per year, and the ratio of inspectors to management employees; and (b) consider alternatives to the state program, which may include privatization of various elements of the inspection program.

(3) The committee shall meet at least once a year during the month of September. The committee may meet at additional times at the call of the director or upon a majority vote of the members. Meetings of the committee are subject to the open public meetings act.

(4) Not later than December 1, 1994, the advisory committee shall report to the agricultural committees of the house of representatives and senate its recommendations for long-term structure and funding of the dairy inspection program.

(5) This section shall expire June 30, 1995.

Sec. 4. RCW 15.36.080 and 1989 c 354 s 16 are each amended to read as follows:

(1) It shall be unlawful for any person to transport, or to sell, or offer for sale, or to have in storage where milk or milk products are sold or served, any milk or milk product defined in this chapter, who does not possess an appropriate permit from the director.

Every milk producer, milk distributor, milk hauler, and operator of a milk plant shall secure a permit to conduct such operation as defined in this chapter. Only a person who complies with the requirements of this chapter shall be entitled to receive and retain such a permit. Permits shall not be transferable with respect to persons and/or locations.

(2) Until June 30, 1995, a license fee is established for permits to operate a milk plant. The fee shall accompany the initial application and shall be renewed annually. The license fee is determined by computing the gross annual value of products processed at the milk plant for the accounting year immediately preceding the license year. If the license is for a new operator, the operator shall estimate the gross annual value of products anticipated for the initial license year.

If gross annual values are: The license fee is:

$0 to $50,000 $50.00

$50,001 to $500,000 $100.00

$500,001 to $1,000,000 $200.00

$1,000,001 to $5,000,000 $350.00

$5,000,001 to $10,000,000 $500.00

Greater than $10,000,001 $750.00

This subsection shall expire June 30, 1995.

(3) Such a permit may be temporarily suspended by the director upon violation by the holder of any of the terms of this chapter, or for interference with the director in the performance of his duties, or revoked after an opportunity for a hearing by the director upon serious or repeated violations.

NEW SECTION. Sec. 5. A new section is added to chapter 69.07 RCW to read as follows:

The legislature finds that an adequate food processing inspection program administered by the department is essential for the protection of the public health and to maintain the marketability of processed foods within the state and in out-of-state markets. The legislature finds that sharing of the costs of the program as well as the benefits between the public and the regulated industry is justified in order to maintain an adequate program.

Sec. 6. RCW 69.07.040 and 1991 c 137 s 3 are each amended to read as follows:

It shall be unlawful for any person to operate a food processing plant or process foods in the state without first having obtained an annual license from the department, which shall expire on a date set by rule by the director. License fees shall be prorated where necessary to accommodate staggering of expiration dates. Application for a license shall be on a form prescribed by the director and accompanied by ((~~a twenty-five dollar annual~~)) the license fee. The license fee is determined by computing the gross annual sales for the accounting year immediately preceding the license year. If the license is for a new operator, the license fee shall be based on an estimated gross annual sales for the initial license period.

If gross annual sales are: The license fee is:

$0 to $50,000 $50.00

$50,001 to $500,000 $100.00

$500,001 to $1,000,000 $200.00

$1,000,001 to $5,000,000 $350.00

$5,000,001 to $10,000,000 $500.00

Greater than $10,000,000 $750.00

Such application shall include the full name of the applicant for the license and the location of the food processing plant he or she intends to operate. If such applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation shall be given on the application. Such application shall further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant. The application shall also specify the type of food to be processed and the method or nature of processing operation or preservation of that food and any other necessary information. Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted hereunder by the department, the applicant shall be issued a license or renewal thereof.

Licenses shall be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. Wherever a license holder wishes to engage in processing a type of food product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities or has a high potential for harm, the licensee shall submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of food product only after the amendment has been approved by the department.

If upon investigation by the director, it is determined that a person is processing food for retail sale and is not under permit, license, or inspection by a local health authority, then that person may be considered a food processor and subject to the provisions of this chapter.

Sec. 7. RCW 69.07.050 and 1991 c 137 s 4 are each amended to read as follows:

If the application for renewal of any license provided for under this chapter is not filed prior to the expiration date as established by rule by the director, an additional fee of ((~~fifteen dollars~~)) ten percent of the cost of the license shall be assessed and added to the original fee and shall be paid by the applicant before the renewal license shall be issued: PROVIDED, That such additional fee shall not be charged if the applicant furnishes an affidavit certifying that he or she has not operated a food processing plant or processed foods subsequent to the expiration of his or her license.

Sec. 8. RCW 69.07.120 and 1967 ex.s. c 121 s 12 are each amended to read as follows:

All moneys received by the department under the provisions of this chapter shall be paid into the ((~~state treasury~~)) food processing inspection account within the agricultural local fund established in RCW 43.23.230 and shall be used solely to carry out the provisions of this chapter.