FINAL BILL REPORT

SSB 5170

                                   C 35 L 87

BYSenate Committee on Agriculture (originally sponsored by Senators Hansen, Barr, Gaspard, Bauer, Bailey, Benitz and Patterson)

Changing provisions relating to agricultural fees and assessments.

Senate Committee on Agriculture

House Committe on Agriculture & Rural Development

SYNOPSIS AS ENACTED

BACKGROUND:

Nursery dealers are regulated by the Department of Agriculture.  Nursery dealer licenses are required and the fees for such licenses are set by statute.  Retail licenses range from $25 to $100 based on gross business sales.  Wholesale licenses range from $50 to $100 based on gross business sales.  The statute delineates the necessary license if both retail and wholesale business is conducted on the premises.  Gross business sales are determined either by an estimate for new licensees or on the preceding year's sales for existing licensees.

In addition to the license fees, an annual assessment of 1 percent is levied on the gross sale price of the wholesale market for all fruit trees, fruit tree seedlings, and fruit tree root stock sold within the state or shipped from the state by a licensed nursery dealer.  The Director may, after a hearing, reduce the assessment from 1 percent to meet the costs of the fruit tree certification and nursery improvement programs.

All money collected except assessments and penalties are paid into the nursery inspection fund.  Such funds may only be used for the administration and enforcement of the horticultural inspection and testing programs, provided that all fees collected for fruit tree, fruit tree seedlings, and fruit tree root stock shall be deposited in the northwest nursery fund and used solely for the fruit tree certification and nursery improvement programs.

The funds involved here are derived from horticultural products and the benefits of the horticultural inspection and testing program relate directly to the fruit tree industry.  Representatives of this industry have recommended some changes which will help in the improvement and certification of fruit trees.

SUMMARY:

License fees and assessments shall be established by the Director in accordance with the Administrative Procedure Act rather than set forth in the statute.  The schedule of fees for retail and wholesale nursery dealer licenses is to be based on retail or wholesale sales and shall have categories which reflect gross business sales which are above or below $2,500.  Fees are to be based on an estimate of sales for the ensuing year.

The Department of Agriculture is given the authority to audit licensees for purposes of both the license fees and the assessment on sales.  The products upon which an assessment is levied is expanded to include all root stock used for fruit tree propagation.

Funds collected shall be deposited in the agricultural local fund and no appropriation is needed for disbursing money from this account.  Any residual balance in the nursery inspection fund on the effective date of this act shall be transferred to an account within the agricultural local fund.

In addition to the fruit tree certification and improvement programs, the Director may, with advice from the advisory committee, expend up to 50 percent of the fees collected annually for testing and improvement of fruit trees.  The northwest nursery fund balance shall not fall below the combined cost of the program for the previous two years.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 97   0 (House amended)

      Senate    43     0 (Senate concurred)

EFFECTIVE:July 26, 1987