Read first time 01/23/2003.   Referred to Committee on Agriculture & Natural Resources.

     AN ACT Relating to the state agricultural commodity commissions; amending RCW 15.66.030, 15.66.140, 15.66.185, 15.66.110, 15.65.220, 15.28.020, 15.28.040, 15.28.050, 15.28.060, 15.28.070, 15.28.080, 15.44.020, 15.44.033, 15.44.035, 15.44.150, 16.67.040, 15.88.030, 15.88.040, 15.88.050, 15.88.100, and 15.88.180; adding new sections to chapter 15.66 RCW; adding new sections to chapter 15.65 RCW; adding new sections to chapter 15.28 RCW; adding new sections to chapter 15.44 RCW; adding new sections to chapter 16.67 RCW; adding new sections to chapter 15.88 RCW; creating a new section; repealing RCW 15.66.115 and 15.65.245; and declaring an emergency.

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

Sec. 1   RCW 15.66.030 and 2002 c 313 s 40 are each amended to read as follows:
     Marketing orders may be made for any one or more of the following purposes:
     (1) To establish plans and conduct programs for advertising and sales promotion, to maintain present markets, or to create new or larger markets for any agricultural commodity grown in the state of Washington;
     (2) To provide for carrying on research studies to find more efficient methods of production, irrigation, processing, transportation, handling, and marketing of any agricultural commodity;
     (3) To provide for improving standards and grades by defining, establishing, and providing labeling requirements with respect to the same;
     (4) To investigate and take necessary action to prevent unfair trade practices;
     (5) To provide information or communicate on matters pertaining to the production, irrigation, processing, transportation, marketing, or uses of an agricultural commodity produced in Washington state to any elected official or officer or employee of any agency;
     (6) To provide marketing information and services for producers of an agricultural commodity;
     (7) To provide information and services for meeting resource conservation objectives of producers of an agricultural commodity;
     (8) To engage in cooperative efforts in the domestic or foreign marketing of food products of an agricultural commodity; ((and))
     (9) To provide for commodity-related education and training; and
     (10) To assist and cooperate with the department or any other local, state, or federal government agency in the investigation and control of exotic pests and diseases that could damage or affect trade of the affected commodity.

Sec. 2   RCW 15.66.140 and 2002 c 313 s 57 are each amended to read as follows:
     Every commodity commission shall have such powers and duties in accordance with provisions of this chapter as may be provided in the marketing order and shall have the following powers and duties:
     (1) To elect a chair and such other officers as determined advisable;
     (2) To adopt, rescind and amend rules and regulations reasonably necessary for the administration and operation of the commission and the enforcement of its duties under the marketing order;
     (3) To administer, enforce, direct and control the provisions of the marketing order and of this chapter relating thereto;
     (4) To employ and discharge at its discretion such administrators and additional personnel, attorneys, advertising and research agencies and other persons and firms that it may deem appropriate and pay compensation to the same;
     (5) To acquire personal property and purchase or lease office space and other necessary real property and transfer and convey the same;
     (6) To institute and maintain in its own name any and all legal actions, including actions by injunction, mandatory injunction or civil recovery, or proceedings before administrative tribunals or other governmental authorities necessary to carry out the provisions of this chapter and of the marketing order;
     (7) To keep accurate records of all its receipts and disbursements, which records shall be open to inspection and audit by the state auditor or private auditor designated by the state auditor at least every five years;
     (8) Borrow money and incur indebtedness;
     (9) Make necessary disbursements for routine operating expenses;
     (10) To expend funds for commodity-related education, training, and leadership programs as each commission deems expedient;
     (11) To work cooperatively with other local, state, and federal agencies; universities; and national organizations for the purposes provided in the commission's marketing order;
     (12) To enter into contracts or interagency agreements with any private or public agency, whether federal, state, or local, to carry out the purposes provided in the commission's marketing order. Personal service contracts must comply with chapter 39.29 RCW;
     (13) To accept and expend or retain any gifts, bequests, contributions, or grants from private persons or private and public agencies to carry out the purposes provided in the commission's marketing order;
     (14) To enter into contracts or agreements for research in the production, irrigation, processing, transportation, marketing, use, or distribution of an affected commodity;
     (15) To retain in emergent situations the services of private legal counsel to conduct legal actions on behalf of a commission. The retention of a private attorney is subject to review by the office of the attorney general;
     (16) To engage in appropriate fund-raising activities for the purpose of supporting activities of the commission authorized by the marketing order;
     (17) To participate in international, federal, state, and local hearings, meetings, and other proceedings relating to the production, irrigation, manufacture, regulation, transportation, distribution, sale, or use of affected commodities including activities authorized under RCW 42.17.190, including the reporting of those activities to the public disclosure commission;
     (18) To maintain a list of the names and addresses of affected producers that may be compiled from information used to collect assessments under the provisions of the marketing order and data on the value of each producer's production for a minimum three-year period;
     (19) To maintain a list of the names and addresses of persons who handle the affected commodity within the affected area and data on the amount and value of the commodity handled for a minimum three-year period by each person; ((and))
     (20) To request records and audit the records of producers or handlers of the affected commodity during normal business hours to determine whether the appropriate assessment has been paid;
     (21) To acquire or own intellectual property rights, licenses, or patents and to collect royalties resulting from commission-funded research related to the affected commodity; and
     (22) Such other powers and duties that are necessary to carry out the purposes of this chapter.

Sec. 3   RCW 15.66.185 and 2002 c 313 s 62 are each amended to read as follows:
     (1) Any funds of any agricultural commodity commission may be invested in savings or time deposits in banks, trust companies, and mutual savings banks that are doing business in the United States, up to the amount of insurance afforded such accounts by the Federal Deposit Insurance Corporation.
     (2) This section shall apply to all funds which may be lawfully so invested, which in the judgment of any agricultural commodity commission are not required for immediate expenditure. The authority granted by this section is not exclusive and shall be construed to be cumulative and in addition to other authority provided by law for the investment of such funds, including, but not limited to, authority granted under chapters 39.58, 39.59, and 43.84 RCW.

Sec. 4   RCW 15.66.110 and 2002 c 313 s 51 are each amended to read as follows:
     (1) Every marketing order shall establish a commodity commission composed of not less than five nor more than ((thirteen)) fifteen members. ((In addition, the director shall be an ex officio member of each commodity commission unless otherwise specified in the marketing order.)) Commission members shall be citizens and residents of this state if required by the marketing order, and over the age of eighteen. Not more than one commission member may be part of the same "person" as defined by this chapter. The term of office of commission members shall be three years with the terms rotating so than one-third of the terms will commence as nearly as practicable each year. However, the first commission shall be selected, one-third for a term of one year, one-third for a term of two years, and one-third for a term of three years, as nearly as practicable. Except as provided in subsection (2) of this section, no less than ((two-thirds)) sixty percent of the commission members shall be elected by the affected producers and such elected members shall all be affected producers. Except as provided in subsection (4) of this section, the remaining members shall be appointed by the commission and shall be either affected producers, others active in matters relating to the affected commodity, or persons not so related.
     (2) A marketing order may provide that a majority of the commission be appointed by the director((, but in any event, no less than one-third of the commission members shall be elected by the affected producers)).
     (3) In the event that the marketing order provides that a majority of the commission be appointed by the director, the marketing order shall incorporate ((either)) the provisions of RCW 15.66.113 ((or 15.66.115)) for member selection.
     (4) The director shall appoint to every commission one member who represents the director. The director is a voting member of each commodity commission.

NEW SECTION.  Sec. 5   A new section is added to chapter 15.66 RCW to read as follows:
     (1) Each commodity commission shall develop and submit to the director for approval any plans, programs, and projects concerning the following:
     (a) The establishment, issuance, effectuation, and administration of appropriate programs or projects for the advertising and promotion of the affected commodity; and
     (b) The establishment and effectuation of market research projects, market development projects, or both to the end that the marketing and utilization of the affected commodity may be encouraged, expanded, improved, or made more efficient.
     (2) The director shall review each commodity commission's advertising or promotion program to ensure that no false claims are being made concerning the affected commodity.
     (3) Each commodity commission, prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education and training plan, and its budget on a fiscal period basis.
     (4) The director shall strive to review and make a determination of all submissions described in this section in a timely manner.

NEW SECTION.  Sec. 6   A new section is added to chapter 15.66 RCW to read as follows:
     Each commission organized under a marketing order adopted under this chapter exists primarily for the benefit of the people of the state of Washington and its economy. The legislature hereby charges each commission, with oversight by the director, to speak on behalf of Washington state government with regard to its particular commodity.

NEW SECTION.  Sec. 7   RCW 15.66.115 (When director appoints majority of the commission -- Nominations -- Advisory vote -- Notice--Director appoints candidate receiving the most votes -- Exception) and 2002 c 313 s 53 are each repealed.

NEW SECTION.  Sec. 8   The costs incurred by the department of agriculture that are associated with the implementation of section 5 of this act shall be paid for by the affected commodity commissions.

Sec. 9   RCW 15.65.220 and 2002 c 313 s 20 are each amended to read as follows:
     (1) Every marketing agreement and order shall provide for the establishment of a commodity board of not less than five nor more than thirteen members and shall specify the exact number thereof and all details as to (a) qualification, (b) nomination, (c) election or appointment by the director, (d) term of office, and (e) powers, duties, and all other matters pertaining to such board.
     (2) The members of the board shall be producers or handlers or both in such proportion as the director shall specify in the marketing agreement or order, but in any marketing order or agreement the number of handlers on the board shall not exceed the number of producers thereon. The marketing order or agreement may provide that a majority of the board be appointed by the director, but in any event, no less than one-third of the board members shall be elected by the affected producers.
     (3) In the event that the marketing order or agreement provides that a majority of the commodity board be appointed by the director, the marketing order or agreement shall incorporate ((either)) the provisions of RCW 15.65.243 ((or 15.65.245)) for board member selection.
     (4) The director shall appoint to every board one member who represents the director. The director shall be a voting member of each commodity board.

NEW SECTION.  Sec. 10   A new section is added to chapter 15.65 RCW to read as follows:
     (1) Each commodity commission shall develop and submit to the director for approval any plans, programs, and projects concerning the following:
     (a) The establishment, issuance, effectuation, and administration of appropriate programs or projects for the advertising and promotion of the affected commodity; and
     (b) The establishment and effectuation of market research projects, market development projects, or both to the end that the marketing and utilization of the affected commodity may be encouraged, expanded, improved, or made more efficient.
     (2) The director shall review each commodity commission's advertising or promotion program to ensure that no false claims are being made concerning the affected commodity.
     (3) Each commodity commission, prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education and training plan, and its budget on a fiscal period basis.
     (4) The director shall strive to review and make a determination of all submissions described in this section in a timely manner.

NEW SECTION.  Sec. 11   A new section is added to chapter 15.65 RCW to read as follows:
     Each commission organized under a marketing order adopted under this chapter exists primarily for the benefit of the people of the state of Washington and its economy. The legislature hereby charges each commission, with oversight by the director, to speak on behalf of Washington state government with regard to its particular commodity.

NEW SECTION.  Sec. 12   A new section is added to chapter 15.65 RCW to read as follows:
     The costs incurred by the department associated with the implementation of section 10 of this act shall be paid for by the affected commodity commissions.

Sec. 13   RCW 15.28.020 and 2002 c 313 s 105 are each amended to read as follows:
     The commission is composed of ((sixteen)) seventeen voting members, as follows: Ten producers, four dealers, and two processors, who are ((elected and qualified)) appointed as provided in this chapter. The director, or an authorized representative, shall be ((an ex officio member without a vote)) a voting member of the commission. Other sections of this chapter that relate to the selection of voting members shall not apply to the director or his or her authorized representative.
     A majority of the voting members constitute a quorum for the transaction of any business.

Sec. 14   RCW 15.28.040 and 1967 c 191 s 3 are each amended to read as follows:
     Of the producer members, four shall be ((elected)) appointed from the first district and occupy positions one, two, three and four; four shall be ((elected)) appointed from the second district and occupy positions five, six, seven and eight, and two shall be ((elected)) appointed from the third district and occupy positions nine and ten.
     Of the dealer members, two shall be ((elected)) appointed from each of the first and second districts and respectively occupy positions eleven and twelve from the first district and positions thirteen and fourteen from the second district.
     The processor members shall be ((elected)) appointed from the state at large and occupy positions fifteen and sixteen. The dealer member position previously referred to as position twelve shall henceforth be position thirteen. The processor member position heretofore referred to as position fourteen shall cease to exist on March 21, 1967. The processor member position heretofore referred to as thirteen shall be known as position sixteen.

Sec. 15   RCW 15.28.050 and 1967 c 191 s 4 are each amended to read as follows:
     The regular term of office of the members of the commission shall be three years commencing on May 1, following the date of ((election)) appointment and until their successors are ((elected)) appointed and qualified, except, however, that the first term of dealer position twelve in the first district shall be for two years and expire May 1, 1969.

NEW SECTION.  Sec. 16   A new section is added to chapter 15.28 RCW to read as follows:
     (1) The director shall appoint the members of the commission.
     (2) Candidates for positions on the commission shall be nominated under RCW 15.28.060.
     (3) Not less than sixty days nor more than seventy-five days prior to the commencement of a commission member's term, the director shall cause an advisory vote to be held for the director-appointed positions. Advisory ballots shall be mailed to all affected producers and shall be returned to the director not less than thirty days prior to the commencement of the term. The advisory ballot shall be conducted in a manner so that it is a secret ballot. The names of the two candidates receiving the most votes in the advisory vote shall be forwarded to the director for potential appointment to the commission. In the event there are only two candidates nominated for a position, an advisory vote may not be held and the candidates' names shall be forwarded to the director for potential appointment. If only one candidate is nominated for a position, the commission shall select a second candidate whose name will be forwarded to the director.
     (4) Any candidate whose name is forwarded to the director for potential appointment shall submit to the director a letter stating why he or she wishes to be appointed to the commission. The director may select either person for the position.

NEW SECTION.  Sec. 17   A new section is added to chapter 15.28 RCW to read as follows:
     To accomplish the transition to a commission structure where the director appoints a majority of commission members, the names of the currently elected commission members shall be forwarded to the director for appointment to the commission within thirty days of the effective date of this act. Thereafter, the director shall appoint commission members pursuant to section 16 of this act as the current commission member terms expire.

Sec. 18   RCW 15.28.060 and 1967 c 191 s 6 are each amended to read as follows:
     The director shall call meetings at times and places concurred upon by the director and the commission for the purpose of nominating producer, dealer or processor members for ((election)) potential appointment to the commission when such members' terms are about to expire. Notice of such meetings shall be given at least sixty days prior to the time the respective members' term is about to expire. The nominating meetings shall be held at least sixty days prior to the expiration of the respective members' term of office.
     Notice shall be given by the commission by mail to all known persons having a right to vote for such respective nominee's ((election)) potential appointment to the commission.
     Further, the commission shall publish notice at least once in a newspaper of general circulation in the district where the nomination is to be held. Such a newspaper may be published daily or weekly. The failure of any person entitled to receive notice of such nominating meeting shall not invalidate such nominating meeting or the ((election)) appointment of a member nominated at such meeting.
     Any person qualified to serve on the commission may be nominated orally at ((said)) the nomination meetings. Written nominations, signed by five persons qualified to vote for the said nominee, may be made for five days subsequent to ((said)) the nomination meeting. Such written nominations shall be filed with the commission at its Yakima office.
     ((Members of the commission shall be elected by a)) The director shall cause an advisory vote to be held for commission positions. The advisory vote shall be by secret mail ballot((, and such election shall be conducted under the supervision of the director, and the elected candidate shall become a member of the commission upon certification of the director that said elected candidate has satisfied the required qualifications for membership on the commission.
     When only one nominee is nominated for any position on the commission, the director shall, if such nominee satisfies the requirements of the position for which he was nominated, certify the said nominee as to his qualifications and then it shall be deemed that said nominee has been duly elected. Nominees receiving a majority of the votes in an election shall be considered to have been elected and if more than one position is to be filled in a district or at large, the nominees respectively receiving the largest number of votes shall be deemed to have been elected to fill the vacancies from said districts or areas on the commission)). Persons qualified to vote for members of the commission shall, except as otherwise provided by law or rule or regulation of the commission, vote only in the district in which their activities make them eligible to vote for a potential member of the commission.
     A producer to be eligible to vote in ((an election)) the advisory vote for a nominee as a producer member of the commission must be a commercial producer of soft tree fruits paying assessments to the commission.
     When a legal entity acting as a producer, dealer, or processor is qualified to vote for a candidate in any district or area to serve in a specified position on the commission, such legal entity may cast only one vote for such candidate, regardless of the number of persons comprising such legal entity or stockholders owning stock therein.

Sec. 19   RCW 15.28.070 and 1967 c 191 s 7 are each amended to read as follows:
     The commission shall have the authority, subject to the provisions of chapter 34.05 RCW (Administrative Procedure Act), for adopting rules and regulations, after public hearing, establishing one or more subdistricts in any one of the three districts. Such subdistricts shall include a substantial portion of the soft tree fruit producing area in the district in which they are formed.
     The commission shall, when a subdistrict has been formed within one of the districts as in this section provided for, assign one of the districts' producer positions on the commission to said subdistrict. Such producer position may only be filled by a producer residing in such subdistrict, whether by ((election,)) apportionment((,)) or appointment.

Sec. 20   RCW 15.28.080 and 1961 c 11 s 15.28.080 are each amended to read as follows:
     In the event a position becomes vacant due to resignation, disqualification, death, or for any other reason, such position, until the next annual ((election)) nominating meeting, shall be filled by vote of the remaining members of the commission. ((At such annual election a commissioner shall be elected to fill the balance of the unexpired term.)) Following the next annual nomination meeting, the director shall appoint one of the two nominees selected by advisory ballot to fill the balance of the unexpired term.

NEW SECTION.  Sec. 21   A new section is added to chapter 15.28 RCW to read as follows:
     (1) The commission shall develop and submit to the director for approval any plans, programs, and projects concerning the following:
     (a) The establishment, issuance, effectuation, and administration of appropriate programs or projects for the advertising and promotion of the affected commodities; and
     (b) The establishment and effectuation of market research projects, market development projects, or both to the end that the marketing and utilization of the affected commodities may be encouraged, expanded, improved, or made more efficient.
     (2) The director shall review the commission's advertising or promotion program to ensure that no false claims are being made concerning the affected commodities.
     (3) The commission, prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education and training plan, and its budget on a fiscal period basis.
     (4) The director shall strive to review and make a determination of all submissions described in this section in a timely manner.

NEW SECTION.  Sec. 22   A new section is added to chapter 15.28 RCW to read as follows:
     The commission exists primarily for the benefit of the people of the state of Washington and its economy. The legislature hereby charges the commission, with oversight by the director, to speak on behalf of Washington state government with regard to its particular commodities.

NEW SECTION.  Sec. 23   A new section is added to chapter 15.28 RCW to read as follows:
     The costs incurred by the department of agriculture associated with the implementation of section 21 of this act shall be paid for by the commission.

Sec. 24   RCW 15.44.020 and 2002 c 313 s 89 are each amended to read as follows:
     The dairy products commission shall be composed of not more than ten members. There shall be one member from each district who shall be a practical producer of dairy products ((to be elected by such producers)), one member shall be a dealer, and one member shall be a producer who also acts as a dealer((, and such dealer and producer who acts as a dealer shall be appointed by the director of agriculture, and)). The director of agriculture shall be ((an ex officio member without vote)) a voting member of the commission.
     As used in this chapter, "director" means the director of agriculture or his or her authorized representative.

NEW SECTION.  Sec. 25   A new section is added to chapter 15.44 RCW to read as follows:
     (1) The director shall appoint the members of the commission.
     (2) Candidates for producer member positions on the commission shall be nominated under RCW 15.44.033.
     (3) The director shall cause an advisory vote to be held for the producer member positions. Advisory ballots shall be mailed to all affected producers in the district where a vacancy is about to occur and shall be returned to the director not less than thirty days prior to the commencement of the term. The advisory ballot shall be conducted in a manner so that it is a secret ballot. The names of the two candidates receiving the most votes in the advisory vote shall be forwarded to the director for potential appointment to the commission. In the event there are only two candidates nominated for a position, an advisory vote may not be held and the candidates' names shall be forwarded to the director for potential appointment. If only one candidate is nominated for a position, the commission shall select a second candidate whose name will be forwarded to the director.
     (4) Any candidate whose name is forwarded to the director for potential appointment shall submit to the director a letter stating why he or she wishes to be appointed to the commission. The director may select either person for the position.

Sec. 26   RCW 15.44.033 and 1995 c 374 s 59 are each amended to read as follows:
     Producer members of the commission shall be nominated ((and elected)) by producers within the district that such producer members represent in the year in which a commission member's term shall expire. ((Such producer members receiving the largest number of the votes cast in the respective districts which they represent shall be elected. The election shall be by secret mail ballot and under the supervision of the director.))
     Nomination for candidates to be ((elected)) appointed to the commission shall be conducted by mail by the director. Such nomination forms shall be mailed by the director to each producer in a district where a vacancy is about to occur. Such mailing shall be made on or after April 1st, but not later than April 10th of the year the commission vacancy will occur. The nomination form shall provide for the name of the producer being nominated and the names of five producers nominating such nominee. The producers nominating such nominee shall affix their signatures to such form and shall further attest that the said nominee meets the qualifications for a producer member to serve on the commission and that he or she will be willing to serve on the commission if ((elected)) appointed.
     All nominations as provided for herein shall be returned to the director by April 30th, and the director shall not accept any nomination postmarked later than midnight April 30th, nor place the candidate thereon on the advisory election ballot.
     Advisory vote ballots for electing ((members)) nominees to the commission will be mailed by the director to all eligible producers no later than May 15th, in districts where advisory elections are to be held and such ballots to be valid shall be returned postmarked no later than May 31st of the year mailed, to the director in Olympia.
     ((If only one person is nominated for a position on the commission,)) The director shall determine whether the ((person possesses)) persons nominated possess the qualifications required by statute for the position ((and, if the director determines that the person possesses such qualifications, the director shall declare that the person has been duly elected)).

Sec. 27   RCW 15.44.035 and 2002 c 313 s 90 are each amended to read as follows:
     (1) The commission shall prior to each advisory election, in sufficient time to satisfy the requirements of RCW 15.44.033, furnish the director with a list of all producers within the district for which the advisory election is being held. The commission shall require each dealer and shipper in addition to the information required under RCW 15.44.110 to furnish the commission with a list of names of producers whose milk they handle.
     (2) Any producer may on his or her own motion file his or her name with the commission for the purpose of receiving notice of the advisory election.
     (3) It is the responsibility of each producer to ensure that his or her correct address is filed with the commission.
     (4) For all purposes of giving notice, holding referenda, and ((electing members of)) conducting advisory votes for nominees to the commission, the applicable list of producers corrected up to the day preceding the date the list is certified and mailed to the director is deemed to be the list of all producers or handlers, as applicable, entitled to notice or to vote. The list shall be corrected and brought up-to-date in accordance with evidence and information provided to the commission.

NEW SECTION.  Sec. 28   A new section is added to chapter 15.44 RCW to read as follows:
     To accomplish the transition to a commission structure where the director appoints the commission members, the names of the currently elected commission members shall be forwarded to the director for appointment to the commission within thirty days of the effective date of this act. Thereafter, the director shall appoint commission members pursuant to section 25 of this act as the current commission member terms expire.

NEW SECTION.  Sec. 29   A new section is added to chapter 15.44 RCW to read as follows:
     (1) The commission shall develop and submit to the director for approval any plans, programs, and projects concerning the following:
     (a) The establishment, issuance, effectuation, and administration of appropriate programs or projects for the advertising, promotion, and education of the affected commodities; and
     (b) The establishment and effectuation of market research projects, market development projects, or both to the end that the marketing and utilization of the affected commodities may be encouraged, expanded, improved, or made more efficient.
     (2) The director shall review the commission's advertising or promotion program to ensure that no false claims are being made concerning the affected commodities.
     (3) The commission, prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education, training and leadership plan, and its budget on a fiscal period basis.
     (4) The director shall strive to review and make a determination of all submissions described in this section in a timely manner.

NEW SECTION.  Sec. 30   A new section is added to chapter 15.44 RCW to read as follows:
     The commission exists primarily for the benefit of the people of the state of Washington and its economy. The legislature hereby charges the commission, with oversight by the director, to speak on behalf of Washington state government with regard to its particular commodities.

NEW SECTION.  Sec. 31   A new section is added to chapter 15.44 RCW to read as follows:
     The costs incurred by the department of agriculture associated with the implementation of section 29 of this act shall be paid for by the commission.

Sec. 32   RCW 15.44.150 and 2002 c 313 s 102 are each amended to read as follows:
     Any action by the commission administrator, member, employee, or agent thereof pertaining to the performance or nonperformance or misperformance of any matters or things authorized, required, or permitted by this chapter, and any other liabilities, debts, or claims against the commission shall be enforced in the same manner as if the commission were a corporation. No liability for the debts or actions of the commission shall exist against the state of Washington or any subdivision or instrumentality thereof. Liability for the debts or actions of the commission's administrator, member, employee, or agent incurred in their official capacity under this chapter does not exist either against the administrator, members, employees, and agents in their individual capacity or the state of Washington. The administrator, its members, and its agents and employees are not responsible individually in any way whatsoever to any person for errors in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, person, or employee, except for their own individual acts of dishonesty or crime.
     All persons employed or contracting under this chapter shall be limited to, and all salaries, expenses, and liabilities incurred by the commission shall be payable only from the funds collected under this chapter.

Sec. 33   RCW 16.67.040 and 2000 c 146 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, and the director, who shall be a voting member. 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 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, there may be one additional nonvoting 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.

NEW SECTION.  Sec. 34   A new section is added to chapter 16.67 RCW to read as follows:
     (1) The commission shall develop and submit to the director for approval any plans, programs, and projects concerning the following:
     (a) The establishment, issuance, effectuation, and administration of appropriate programs or projects for the advertising and promotion of its affected commodities; and
     (b) The establishment and effectuation of market research projects, market development projects, or both to the end that the marketing and utilization of its affected commodities may be encouraged, expanded, improved, or made more efficient.
     (2) The director shall review the commission's advertising or promotion program to ensure that no false claims are being made concerning its affected commodities.
     (3) The commission, prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education and training plan, and its budget on a fiscal period basis.
     (4) The director shall strive to review and make a determination of all submissions described in this section in a timely manner.

NEW SECTION.  Sec. 35   A new section is added to chapter 16.67 RCW to read as follows:
     The commission exists primarily for the benefit of the people of the state of Washington and its economy. The legislature hereby charges the commission, with oversight by the director, to speak on behalf of Washington state government with regard to its particular commodities.

NEW SECTION.  Sec. 36   A new section is added to chapter 16.67 RCW to read as follows:
     The costs incurred by the department associated with the implementation of section 34 of this act shall be paid for by the commission.

NEW SECTION.  Sec. 37   RCW 15.65.245 (When director appoints majority of the board -- Nominations -- Advisory vote -- Notice -- Director appoints candidate receiving the most votes -- Exception) and 2002 c 313 s 25 are each repealed.

Sec. 38   RCW 15.88.030 and 1997 c 321 s 40 are each amended to read as follows:
     (1) There is created an agricultural commodity commission to be known and designated as the Washington wine commission. ((Except as provided in RCW 15.88.100(2),)) The commission shall be composed of ((eleven)) twelve voting members and one nonvoting member; five voting members shall be growers, five voting members shall be wine producers, one voting member shall be the director, and one voting member shall be a wine distributor licensed under RCW 66.24.200. Of the grower members, at least one shall be a person who does not have over fifty acres of vinifera grapes in production, at least one shall be a person who has over one hundred acres of vinifera grapes in production, and two may be persons who produce and sell their own wine. Of the wine producer members, at least one shall be a person producing not more than twenty-five thousand gallons of wine annually, at least one shall be a person producing over one million gallons of wine annually, and at least two shall be persons who produce wine from their own grapes. In addition, at least one member shall be a wine producer located in western Washington and at least two members shall be wine producers located in eastern Washington.
     (2) ((In addition to the voting members identified in subsection (1) of this section,)) The commission shall have one nonvoting member who is a wine producer in this state whose principal wine or wines are produced from fruit other than vinifera grapes. ((The director of agriculture, or the director's designee, shall serve as an ex officio, nonvoting member.))
     (3) ((Except as provided in RCW 15.88.100(2),)) Seven voting members of the commission constitute a quorum for the transaction of any business of the commission.
     (4) Each voting member of the commission shall be a citizen and resident of this state and over the age of twenty-one years. Each voting member, except the member holding position eleven, must be or must have been engaged in that phase of the grower or wine producer industry that he or she is appointed to represent, and must during his or her term of office derive a substantial portion of income therefrom, or have a substantial investment in the growing of vinifera grapes or the production of wine from vinifera grapes as an owner, lessee, partner, or a stockholder owning at least ten percent of the voting stock in a corporation engaged in the growing of vinifera grapes or wine production from vinifera grapes; or the manager or executive officer of such a corporation. These qualifications apply throughout each member's term of office. This subsection does not apply to the director.

Sec. 39   RCW 15.88.040 and 1988 c 254 s 13 are each amended to read as follows:
     The ((appointive)) appointed voting positions on the commission shall be designated as follows: The wine producers shall be designated positions one, two, three, four, and five; the growers shall be designated positions six, seven, eight, nine, and ten; ((and)) the wine wholesaler shall be position eleven; and the director shall be position number thirteen. The nonvoting industry member shall be designated position number twelve. The member designated as filling position one shall be a person producing over one million gallons of wine annually. The member designated as position one shall be the sole representative, directly or indirectly, of the producer eligible to hold position one and in no event shall that producer directly or indirectly control more than fifty percent of the votes of the commission.
     Except ((as provided in RCW 15.88.100(2))) for position thirteen, the regular terms of office shall be three years from the date of appointment and until their successors are appointed. However, the first terms of the members appointed upon July 1, 1987, shall be as follows: Positions one, six, and eleven shall terminate July 1, 1990; positions two, four, seven, and nine shall terminate July 1, 1989; and positions three, five, eight, and ten shall terminate July 1, 1988. The term of the initial nonvoting industry member shall terminate July 1, 1990.

Sec. 40   RCW 15.88.050 and 2002 c 313 s 111 are each amended to read as follows:
     (1) The director shall appoint the members of the commission. In making such appointments ((of the voting members)), the director shall take into consideration recommendations made by the growers' association and the wine institute as the persons recommended for appointment as members of the commission. In appointing persons to the commission, the director shall seek to ensure as nearly as possible a balanced representation on the commission which would reflect the composition of the growers and wine producers throughout the state as to number of acres cultivated and amount of wine produced.
     (2) The appointment shall be carried out immediately subsequent to July 1, 1987, and members so appointed as set forth in this chapter shall serve for the periods set forth for the original members of the commission under RCW 15.88.040.
     (3) In the event a position on the commission becomes vacant due to resignation, disqualification, death, or for any other reason, the unexpired term of the position shall immediately be filled by appointment by the director.
     (4) Each member or employee of the commission shall be reimbursed for actual travel expenses incurred in carrying out the provisions of this chapter as defined by the commission in rule. Otherwise if not defined in rule, reimbursement for travel expenses shall be at the rates allowed by RCW 43.03.050 and 43.03.060.

Sec. 41   RCW 15.88.100 and 1988 c 254 s 14 are each amended to read as follows:
     (1) Except as provided in subsection((s)) (2) ((and (3))) of this section, the vote of each of the voting members of the commission shall be weighted as provided by this subsection for the transaction of any of the business of the commission. The total voting strength of the entire voting membership of the commission shall be ((eleven)) twelve votes. The vote of position one shall be equal to the lesser of the following: ((Five)) Six and one-half votes; or eleven votes times the percentage of the wine produced in the state that is produced by the person filling position one. The percentage shall be based upon the amount of wine produced in the previous calendar year and shall be rounded to the nearest ten percent. The remaining votes of the membership of the commission shall be divided equally among the remaining members of the commission.
     (2) ((In the event the assessment described in RCW 66.24.215(1)(b) is not effective on July 1, 1989, the positions designated for growers cease to exist. In such an event, the commission shall be composed of six voting members and two nonvoting members. The nonvoting industry member shall be position seven. Four voting members of the commission constitute a quorum for the modified commission. Of the six votes of the entire voting membership of the modified commission, the vote of position one shall be the lesser of the following: Three votes; or six votes times the percentage of the wine produced in the state that is produced by the person filling position one. The percentage shall be based upon the amount of wine produced in the previous calendar year and shall be rounded to the nearest ten percent. The remaining votes of the membership of the commission shall be divided equally among the remaining members of the commission.
     (3))) In the event that the percentage of wine produced by the producer represented by position one falls below twenty-five percent of the wine produced in this state, the weighted voting mechanism provided for in subsection((s)) (1) ((and (2))) of this section shall cease to be effective. In that case, the voting shall be based on one vote per position.

NEW SECTION.  Sec. 42   A new section is added to chapter 15.88 RCW to read as follows:
     (1) The commission shall develop and submit to the director for approval any plans, programs, and projects concerning the following:
     (a) The establishment, issuance, effectuation, and administration of appropriate programs or projects for the advertising, promotion, and education of the affected commodities; and
     (b) The establishment and effectuation of market research projects, market development projects, or both to the end that the marketing and utilization of the affected commodities may be encouraged, expanded, improved, or made more efficient.
     (2) The director shall review the commission's advertising or promotion program to ensure that no false claims are being made concerning the affected commodities.
     (3) The commission, prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education and training plan, and its budget on a fiscal period basis.
     (4) The director shall strive to review and make a determination of all submissions described in this section in a timely manner.

NEW SECTION.  Sec. 43   A new section is added to chapter 15.88 RCW to read as follows:
     The commission exists primarily for the benefit of the people of the state of Washington and its economy. The legislature hereby charges the commission, with oversight by the director, to speak on behalf of the Washington state government with regard to wine grapes and wine.

Sec. 44   RCW 15.88.180 and 2002 c 313 s 76 are each amended to read as follows:
     (1) The director may provide by rule for a method to fund staff support for all commodity boards or commissions in accordance with RCW 43.23.033 if a position is not directly funded by the legislature and costs related to the specific activity undertaken on behalf of an individual commodity board or commission. The commission shall provide funds to the department according to the rules adopted by the director.
     (2) The costs incurred by the department associated with the implementation of section 42 of this act shall be paid for by the commission.

NEW SECTION.  Sec. 45   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.