FINAL BILL REPORT

SSB 6344

                                  C 254 L 88

BYSenate Committee on Agriculture (originally sponsored Senators Barr, Hansen, Bailey and Anderson; by request of Department of Agriculture)

Revising provisions relating to agriculture.

Senate Committee on Agriculture

House Committe on Agriculture & Rural Development

Rereferred House Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Agricultural Local Fund:  Several agriculturally related statutes comprise the Agricultural Local Fund.  Under the authority of each statute, the Department of Agriculture deposits in the fund all the fees and fines collected to administer and enforce the requirements and obligations directed by the statute.  Each statute also specifies the manner in which the monies collected under its authority are to be distributed.  An appropriation is not required for disbursement.

The fund is considered an efficient means of collecting the fees and distributing the money needed to carry out the duties of the department.  Several other fee generating statutes, however, are not in the fund and remain as appropriated funds in the treasury.  These include the Seed Act, the Fertilizer Act, the Animal Remedy Act, and the Commercial Feed Act.

 Controlled Atmosphere Storage Business Licensing:  A controlled atmosphere storage is a storage warehouse in which the atmospheric gases and the temperature are regulated to control the condition and maturity of fresh fruit and vegetables.  Under statute, the department may charge a $5.00 annual licensing fee for controlled atmosphere storage businesses, but it does not cover the costs of administering this law.

Horticulture District Inspector:  Each county may establish a horticulture pest and disease board to more effectively control and prevent the spread of pests and diseases.  The board is comprised of four members appointed by the county commissioners and one member who is to be the "inspector at large" for the horticulture district.  However, the "inspector at large" position no longer exists in the department, and the language of statute has become obsolete.

Frozen Products Labeling:  A retailer must label specific food fish and meat products as "frozen" if the products have been frozen "subsequent to being offered for sale or distribution to the ultimate consumer."  The time at which labeling must occur has been confusing and inconsistent with the poultry "frozen" labeling requirements.

Certificates to Food Processors:  The department has no statutory authority to issue and charge a fee for food processors for sanitary certificates.  However, food processors, including the entire agri-business food processing community, are required to have a sanitary certificate by foreign countries for exported process foods.  Although the department is issuing the certificates now, it is unable to recoup its costs.

 Commission Merchants Act:  The Commission Merchants Act requires businesses to be licensed and bonded.  Retail business activities are specifically exempt from this requirement.  Some businesses are attempting to avoid licensure and bonding by claiming that the retail portion of their business exempts them from the requirements for their wholesale activities.

Commission merchants are required to list and post a schedule of commissions and an itemized list of all charges for services to be rendered to a consignor.  Producers who consign their products to commission merchants have been having problems with knowing the specific charges of a consignor.

Washington Wine Commission:  The Wine Commission is an agricultural commodity commission composed of one nonvoting and eleven voting members.  Although the department's director, or the director's designee, is a member on all other commodity commissions, the Wine Commission does not include the director as a member.

Boilers and Unfired Pressure Vessels:  With certain exceptions, boilers and unfired pressure vessels must be inspected by personnel of the Department of Labor and Industries.  Rules regarding such inspections are established by the Board of Boiler Rules.

SUMMARY:

 Agricultural Local Fund:  An agricultural local fund is established and will consist of money collected pursuant to specific statutory authority.  The money deposited in the fund may be expended only in accordance with restrictions in the law.  No appropriation is required for disbursements from the fund.  The fees, fines and other monies collected under the Seed Act, the Fertilizer, Agricultural Minerals and Limes Act, the Animal Remedy Act and the Commercial Feed Act are placed into the Agricultural Local Fund.

Controlled Atmosphere Storage Business Licensing:  The increased fee provisions for licensing controlled atmosphere storage businesses are made by the rule making process.

 Horticulture District Inspector:  The Department of Agriculture director has authority to appoint the fifth member of the Horticulture Pest and Disease Board.

 Frozen Products Labeling:  Any food fish or meat products, as defined in law, must be labeled in a "frozen state" before sale if the product has been frozen at any time.

 Certificates to Food Processors:  The department has authority to issue and charge for food processors for sanitary certificates.  The sanitary certificate is not mandatory and has a fee charge of $20.00.

Commission Merchants Act:  A retailer is exempt from the licensing and bonding requirements of the Commission Merchants Act only for the retail business conducted at the place of business.  Commission merchants must distribute to each consignor with every contract the itemized list of the merchant's charges.  A merchant who fails to itemize and distribute a list of charges is guilty of a civil infraction.  Commission merchants are to keep records on the quality and quantity of agricultural products sold and proof of payments received on behalf of the consignor.  Commodities governed by the state Grain Warehouse Act are not subject to the Commission Merchants Act.  Agricultural commodities defined in the Grain Warehouse Act include only those products listed in statute or similar products listed by the department by rule.

Wine Commission:  The Department of Agriculture director is added as an ex officio, nonvoting member to the Wine Commission.

Boilers and Unfired Pressure Vessels:  Unfired pressure vessels that are part of fertilizer rigs used exclusively for agricultural operations are exempt from the inspection requirements of state law.

VOTES ON FINAL PASSAGE:

      Senate    48     0

      House 94   0 (House amended)

      Senate            (Senate refused to concur)

      House             (House refused to recede)

      Senate    49     0 (Senate concurred)

EFFECTIVE:June 9, 1988