H-3722.2  _______________________________________________

                          HOUSE BILL 2999

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Representatives G. Chandler and Linville

Read first time 01/25/2000.  Referred to Committee on Agriculture & Ecology.

Modifying the Washington state beef commission.

    AN ACT Relating to the Washington state beef commission; amending RCW 16.67.040, 16.67.090, 16.67.100, 16.67.110, 16.67.120, 16.67.122, and 16.67.130; and repealing RCW 16.67.150.

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

    Sec. 1.  RCW 16.67.040 and 1997 c 363 s 1 are each amended to read as follows:

    There is hereby created a Washington state beef commission to be thus known and designated.  The commission shall be composed of two beef producers, two dairy (beef) producers, two feeders, one livestock salesyard operator, and one meat packer.  If an otherwise voting member is elected as the chair of the commission, the member may, during the member's term as chair of the commission, cast a vote as a member of the commission only to break a tie vote.  In addition there ((will)) may be one ex officio member without the right to vote from the department of agriculture to be designated by the director thereof and, if the commission so chooses, one additional member in an advisory capacity appointed by the voting members of the commission for such a term as the voting members may set.

    A majority of voting members shall constitute a quorum for the transaction of any business.

    All appointed members as stated in RCW 16.67.060 shall be citizens and residents of this state, over the age of twenty-five years, each of whom is and has been actually engaged in that phase of the cattle industry he or she represents for a period of five years, and has during that period derived a substantial portion of his or her income therefrom, or have a substantial investment in cattle as an owner, lessee, partner, or a stockholder owning at least ten percent of the voting stock in a corporation engaged in the production of cattle or dressed beef, or a manager or executive officer of such corporation.  Producer members of the commission shall not be directly engaged in the business of being a meat packer, or as a feeder, feeding cattle other than their own.  Said qualifications must continue throughout each member's term of office.

    Sec. 2.  RCW 16.67.090 and 1982 c 81 s 3 are each amended to read as follows:

    The powers and duties of the commission shall include the following:

    (1) To administer and enforce the provisions of this chapter, and do all things reasonably necessary to effectuate the purposes of this chapter;

    (2) To elect a chairman and such other officers as it deems advisable;

    (3) To employ and discharge at its discretion a manager, secretary, and such other personnel, including attorneys engaged in the private practice of law subject to the approval and supervision of the attorney general, as the commission determines are necessary and proper to carry out the purposes of this chapter, and to prescribe their duties and powers and fix their compensation;

    (4) To adopt, rescind, and amend rules, regulations and orders for the exercise of its powers hereunder subject to the provisions of chapter 34.05 RCW (Administrative Procedure Act) as now or hereafter amended;

    (5) To establish by resolution, a headquarters which shall continue as such unless and until so changed by the commission.  All records, books and minutes of the commission shall be kept at such headquarters;

    (6) To require a bond of all commission members and employees of the commission in a position of trust in the amount the commission shall deem necessary.  The premium for such bond or bonds shall be paid by the commission from assessments collected.  Such bond shall not be necessary if any such commission member or employee is covered by any blanket bond covering officials or employees of the state of Washington.

    (7) To establish a beef commission revolving fund, such fund to be deposited in a bank or banks or financial institution or institutions, approved for the deposit of state funds, in which all money received by the commission, except an amount of petty cash for each day's needs not to exceed one hundred dollars, shall be deposited each day or as often during the day as advisable; none of the provisions of RCW 43.01.050 as now or hereafter amended shall apply to money collected under this chapter;

    (8) To prepare a budget or budgets covering anticipated income and expenses to be incurred in carrying out the provisions of this chapter during each fiscal year;

    (9) To incur expense and enter into contracts and to create such liabilities as may be reasonable for the proper administration and enforcement of this chapter;

    (10) To borrow money, not in excess of its estimate of its revenue from the current year's contributions;

    (11) To keep or cause to be kept in accordance with accepted standards of good accounting practice, accurate records of all assessments, expenditures, moneys and other financial transactions made and done pursuant to this chapter.  Such records, books and accounts shall be audited at least every five years subject to procedures and methods lawfully prescribed by the state auditor.  Such books and accounts shall be closed as of the last day of each fiscal year ((of the state of Washington)).  A copy of such audit shall be delivered within thirty days after completion thereof to the director, the state auditor and the commission.  On such years and in such event the state auditor is unable to audit the records, books and accounts within six months following the close of the audit period it shall be mandatory that the commission employ a private auditor to make such audit;

    (12) To sue and be sued as a commission, without individual liability for acts of the commission within the scope of the powers conferred upon it by this chapter;

    (13) To cooperate with any other local, state, or national commission, organization or agency, whether voluntary or established by state or federal law, including recognized livestock groups, engaged in work or activities similar to the work and activities of the commission created by this chapter and make contracts and agreements with such organizations or agencies for carrying on joint programs beneficial to the beef industry;

    (14) To accept grants, donations, contributions or gifts from any governmental agency or private source for expenditures for any purpose consistent with the provisions of this chapter;

    (15) To operate jointly with beef commissions or similar agencies established by state laws in adjoining states.

    Sec. 3.  RCW 16.67.100 and 1969 c 133 s 9 are each amended to read as follows:

    The commission shall hold regular meetings, at least quarterly, with the time and date thereof to be fixed by resolution of the commission.

    The commission shall hold an annual meeting((, at which time an annual report will be presented)).  The proposed budget shall be presented for discussion at the meeting.  Notice of the annual meeting shall be given by the commission at least ten days prior to the meeting by public notice of such meeting published in newspapers of general circulation in the state of Washington, by radio and press releases and through trade publications.

    The commission shall establish by resolution, the time, place and manner of calling special meetings of the commission with reasonable notice to the members:  PROVIDED, That, the notice of any special meeting may be waived by a waiver thereof by each member of the commission.

    Sec. 4.  RCW 16.67.110 and 1969 c 133 s 10 are each amended to read as follows:

    The commission shall provide for programs designed to increase the consumption of beef; develop more efficient methods for the production, processing, handling and marketing of beef; eliminate transportation rate inequalities on feed grains and supplements and other production supplies adversely affecting Washington producers; properly identify beef and beef products for consumers as to quality and origin.  For these purposes the commission may:

    (1) Provide for programs for advertising, sales promotion and education, locally, nationally or internationally, for maintaining present markets and/or creating new or larger markets for beef.  Such programs shall be directed toward increasing the sale of beef ((without reference to any particular brand or trademark)) and shall neither make use of false or unwarranted claims in behalf of beef nor disparage the quality, value, sale or use of any other agricultural commodity;

    (2) Provide for research to develop and discover the health, food, therapeutic and dietetic value of beef and beef products thereof;

    (3) Make grants to research agencies for financing studies, including funds for the purchase or acquisition of equipments and facilities, in problems of beef production, processing, handling and marketing;

    (4) Disseminate reliable information founded upon the research undertaken under this chapter or otherwise available;

    (5) Provide for rate studies and participate in rate hearings connected with problems of beef production, processing, handling or marketing; and

    (6) Provide for proper labeling of beef and beef products so that the purchaser and the consuming public of the state will be readily apprised of the quality of the product and how and where it was processed.

    Sec. 5.  RCW 16.67.120 and 1987 c 393 s 11 are each amended to read as follows:

    (1) Except as provided in subsection (2) of this section, there is hereby levied an assessment of fifty cents per head on all Washington cattle sold in this state or elsewhere to be paid by the seller at the time of sale:  ((PROVIDED, That if the assessment levied pursuant to this section is greater than one percent of the sales price, the animal is exempt from the assessment unless the federal order implementing the national beef promotion and research program establishes an assessment on these animals:))  PROVIDED ((FURTHER)), That if such sale is accompanied by a brand inspection by the department such assessment ((shall)) may be collected at the same time, place and in the same manner as brand inspection fees.  Such fees ((shall)) may be collected by the livestock services division of the department and transmitted to the commission:  PROVIDED FURTHER, That, if such sale is made without a brand inspection by the department the assessment shall be paid by the seller and transmitted directly to the commission ((not later than thirty days following the sale)) by the fifteenth day of the month following the month the transaction occurred.

    (2) ((While the federal order implementing the national beef promotion and research program is in effect, the assessment to be levied and)) The procedures for ((its collection)) collecting all state and federal assessments under this chapter shall be as required by the federal order and as described by rules adopted by the commission.

    Sec. 6.  RCW 16.67.122 and 1986 c 190 s 1 are each amended to read as follows:

    In addition to the assessment authorized pursuant to RCW 16.67.120, the commission ((shall have)) has the authority to collect an additional assessment of ((fifty cents)) one dollar per head for cattle subject to assessment by federal order for the purpose of providing funds for a national beef promotion and research program.  The manner in which this assessment will be levied and collected shall be established by rule.  The authority to collect this assessment shall be contingent upon the implementation of federal legislation providing for a national beef promotion and research program and the establishment of the assessment requirement to fund its activities.

    Sec. 7.  RCW 16.67.130 and 1969 c 133 s 12 are each amended to read as follows:

    Any due and payable assessment levied under the provisions of this chapter shall constitute a personal debt of every person so assessed or who otherwise owes the same and shall be due and payable ((within thirty days from the date it becomes first due the commission)) on the fifteenth day of the month following the month the transaction occurred.  In the event any such person fails to pay the full amount within such ((thirty days)) time, the commission shall add to such unpaid assessment an amount of ten percent of the unpaid assessment to defray the cost of collecting the same.  In the event of failure of such person to pay such due and payable assessment, the commission may bring civil action against such person in a state court of competent jurisdiction for the collection thereof, together with the above specified ten percent thereon and any other additional necessary reasonable costs including attorneys' fees.  Such action shall be tried and judgment rendered as in any other cause of action for debt due and payable.

NEW SECTION. Sec. 8.  RCW 16.67.150 (Sales of milk production animals exempted from assessment--Exception) and 1986 c 190 s 3 & 1969 c 133 s 14 are each repealed.

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