SENATE BILL REPORT

                  SHB 1671

              As Reported By Senate Committee On:

Agriculture & Agricultural Trade & Development, March 29, 1995

Title:  An act relating to agricultural commodity commissions.

Brief Description:  Revising commodity commission assessment authority.

Sponsors:  House Committee on Agriculture & Ecology (originally sponsored by Representatives Clements, Chandler, Grant and Mastin).

Brief History:

Committee Activity:  Agriculture & Agricultural Trade & Development:  3/29/95 [DP].

SENATE COMMITTEE ON AGRICULTURE & AGRICULTURAL TRADE & DEVELOPMENT

Majority Report:  Do pass.

  Signed by Senators Rasmussen, Chair; Loveland, Vice Chair; A. Anderson, Bauer, Morton, Newhouse and Snyder.

Staff:  Bob Lee (786-7404)

Background:  Commodity commissions are formed under authority established in state law.  Commodity commissions fund several types of programs that benefit the producers of that commodity such as market promotion and research.  Commodity commissions are controlled by board members that are themselves producers and who are elected by producers of that commodity.  Commissions may increase assessments to fund commission activities with approval of the growers by referendum.  To approve an assessment increase, the referendum  must be approved by:  (1) at least 65 percent of the growers that represent at least 51 percent by volume of production; or (2) at least 51 percent of growers that represent 65 percent of the volume of production.

The Tree Fruit Research Commission is established under a separate statute which provides authority to establish an additional assessment, after referendum approval by producers, for sanitation and for reregistration of plant protection products.

The Tree Fruit Research Commission maintains an industry services fund with a balance of about $100,000 and may collect additional assessments to maintain this fund balance.

In 1993, voters approved Initiative 601 that requires state agencies to receive prior legislative approval of any fee increase that exceeds the fiscal growth factor.  Commodity commissions are included in the broad definition of state agency.  

Summary of Bill:  The Washington Hop Commission is authorized to increase the assessment on hops from the current $2.50 to $3.00 per bale.  The Mint Commission is authorized to increase the assessment on mint from the current rate of three and one-half cents to five cents per pound. 

The Tree Fruit Research Commission is authorized to increase the assessment on cherries  to $4.00 per ton.  The Tree Fruit Research Commission may increase the assessment on all tree fruits to eight cents per ton for the industries services fund.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 1995.

Testimony For:  Reference was made to previous testimony on companion Senate bill.

Testimony Against:  None.

Testified:  Chris Cheney, Hop Growers of Washington.