SENATE BILL REPORT

SB 5170

BYSenators Hansen, Barr, Gaspard, Bauer, Bailey, Benitz and Patterson

Changing provisions relating to agricultural fees and assessments.

Senate Committee on Agriculture

Senate Hearing Date(s):January 29, 1987

Majority Report:  That Substitute Senate Bill No. 5170 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Hansen, Chairman; Bauer, Vice Chairman; Bailey, Barr, Gaspard.

Senate Staff:Kaleen Cottingham (786-7415)

                  January 29, 1987

AS REPORTED BY COMMITTEE ON AGRICULTURE, JANUARY 29, 1987

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 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.

Moneys collected from nursery dealers shall be paid to the Director instead of into a fund in the state treasury.  Any residual balance in that fund on the effective date of this act shall be transferred to an account within the agricultural local fund.  However, all fees collected relative to fruit trees shall be deposited in the northwest nursery 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.

EFFECT OF PROPOSED SUBSTITUTE:

The source of fees and assessments collected under this chapter is clarified.

Fiscal Note:      none requested

Senate Committee - Testified: Bruce Briggs, nursery owner; Steve McGonigle, Nurserymen's Association; Stan Lockry, nursery owner; Mike Schwisow, Department of Agriculture