HOUSE BILL REPORT

SSB 5686

As Amended by the House

BYSenate Committee on Agriculture (originally sponsored by Senators Barr, Hansen, Newhouse, Bailey, Anderson and Gaspard)

Making major changes to agriculture statutes.

House Committe on Agriculture & Rural Development

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Nealey, Ranking Republican Member; Baugher, Doty, Grant, Jesernig, McLean, H. Myers, Rasmussen and Youngsman.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE APRIL 6, 1989

BACKGROUND:

State laws regulating dairies, fluid milk, and dairy products are administered by the Department of Agriculture.  The Department also administers state laws regarding weights and measures, commission merchants and dealers in agricultural commodities, and agricultural warehouses.

Some of the state's agricultural commodity commissions, such as the Fruit Commission and the Apple Advertising Commission, have been created directly by statute.  Others have been created by marketing orders or agreements under the Agricultural Enabling Acts of 1955 and 1961.

During the current biennium, the Department of Agriculture has used Superfund monies to collect for disposal, on a pilot project basis, unusable pesticides from users.

SUMMARY:

DAIRIES & DAIRY PRODUCTS.  The provisions of state law establishing the categories of grade "B" and "certified" raw and pasteurized milk are repealed.  Milk which does not satisfy the requirements of grade "A" milk is now grade "C" milk. Provisions are also repealed which permit the Director of Agriculture, with the approval of the Secretary of Social and Health Services, to approve local milk inspection services, and which authorize units of local government to appoint dairy and dairy product inspectors.

The circumstances are altered under which the Director must downgrade or suspend a dairy farm's or milk plant's grade "A" permit based on violation of milk sample tests.  The antibiotic and pesticide residue tests which may require that actions be taken by the Department are expanded to include tests for residues of other drugs.  Only the Director of Agriculture (not a health officer in charge, as under current law) may permit milk to be removed from a place which is under quarantine.

The annual licensing fee for milk vendors is increased to $10 (from $2). Provisions of state law are repealed which require certain reports from milk processors, vendors, and dealers.

New standards are established by statute for pasteurizing milk and milk products. A requirement of current law that milk be cooled to and kept at certain temperatures is repealed as are the bacteriological counts used as standards for milk and sweet cream.  Certain requirements for pasteurizing equipment are repealed as are certain sanitation standards established by statute.

FRUIT COMMISSION.  All varieties of nectarines are included among the soft tree fruits which are within the jurisdiction of the Fruit Commission.  The assessment on soft tree fruit also applies to commercial fruit which is packed as Washington soft tree fruit.

AGRICULTURAL ENABLING ACT OF 1961.  Dealers are added to those who are regulated by the marketing orders for commodities which are created under the 1961 Enabling Act.  The information which may be required and the examinations and inspections which may be conducted under the Act are expanded.

WEIGHTS & MEASURES.  The Director may establish fees for weighing, measuring, and providing calibration services by the weights and measures lab.  The fees are to be deposited in an account within the Agricultural Local Fund and are to be used for the repair and maintenance of devices and related functions.

COMMISSION MERCHANT STATUTES.  Licenses are no longer required for boom loaders.  Persons licensed as cash buyers may not purchase for processing or resale hay, grain, straw, or livestock.

Commission merchants, dealers, and cash buyers must keep records for three years (rather than one year).  A licensee may not permit any person to operate that person's separate business under the cover of the licensee's license and bond.

AGRICULTURAL WAREHOUSING LAWS.  The agricultural commodities whose warehousing and deposit are expressly regulated under the state's agricultural warehousing laws are altered. (The Department retains the authority to designate additional commodities by rule.)  The Department must adopt rules establishing inspection standards and procedures.  Federal grades and standards in effect on September 30, 1988 (rather than, under current law, July 1,1963) are adopted by reference.  The Department may establish grades and standards for hops.

The authority of an inspector to conduct tests and issue certificates regrading grades of commodities is expanded to include tests and certificates regarding condition and other qualitative measurements.  In lieu of state inspection at terminal warehouses, official supervision of weighing under the U.S. Grain Standards Act may be used.  The procedures established by current law for appealing the results of an inspection are altered and procedures are established for requesting a reinspection.  The name of the grain and hay inspection fund is changed to the Grain Inspection Fund.

APPLE COMMISSION.  Two dealer districts are specified for the four dealer members of the Apple Advertising Commission. Each producer member of the Commission must operate an orchard in the district represented by the member on the Commission.  The dates on which nominating meetings of the Commission may be held are changed.

PESTICIDE WASTE.  The Department is authorized to be licensed as a hazardous waste generator.  The Department may take possession and dispose of unusable pesticides.  The Department may charge fees for this service for waste collected from persons licensed under the Pesticide Control Act (such as pesticide dealers).

SEED ACT.  The provisions of the state's Seed Act, regulating commercial seed, are amended.  Criminal penalties for violations of the Act are repealed and replaced with civil penalties.  Violations are class I civil infractions.  If a buyer is damaged (in an amount greater than $2,000) by the failure of seed to perform as represented, the damage claim must be submitted to non-binding arbitration conducted by an arbitration committee appointed by the Director of Agriculture.  An action to assert the claim or any counterclaim may not be brought until after the arbitration.  Provisions of the Seed Act regarding weed seeds are altered.

APIARY COORDINATED AREAS.  The county legislative authority of a county of the 3rd Class in Southeastern Washington is permitted to regulate the placement and density of apiaries (bee colonies).  A violation of such a regulation is a misdemeanor.

STATE GRASS & FRUIT.  Bluebunch wheatgrass is designated as the state's official grass.  The apple is designated as the state's official fruit.

DISEASE CONTROL PENALTIES.  The state's laws which provide broad authorities to the Department to control animal diseases and establish quarantines are amended.  A violation of any of these laws or the rules implementing those laws, not just certain provisions of the statutes themselves, is a gross misdemeanor.

ORGANIC FOOD.  The standards for "organic" food products are altered beginning January 1, 1991, and standards are established for "transition to organic" food products.  Certification by the Department of "transition to organic" food on a fee-for-service basis is authorized as is the certification of the processing of organic and transition to organic food products.  Placards identifying the name and address of the producer of an organic food product, and similar identification for such products in mail order advertisements, are no longer required for the sale of organic food.

Fiscal Note:      Requested on Amendment March 31, 1989.

House Committee ‑ Testified For:    Mike Schwisow, Department of Agriculture; Miles McEvoy, Organic Food Program.

House Committee - Testified Against:      Sunny Wallace and Garry Wallace, Mystic Lake Dairy.

House Committee - Testimony For:    (1) The dairy statutes are among the oldest administered by the Department.  The bill represents a comprehensive updating of those statutes.  This effort has been conducted in close consultation with the State of Oregon to provide uniformity.  (2) The Fruit Commission has been assessing nectarines by considering them to be a member of the peach family.  The bill permits this practice to continue.  (3) The bill permits the Hop Commission to receive the information it used to receive under a now defunct federal marketing order.  (4) The revisions in the weights and measures laws will permit calibration for commercial users on a fee-for-service basis so that this activity will no longer compete with field work for support monies.  (5) The organic food amendments will, on a delayed basis, conform this state's standards to those generally recognized elsewhere and to those which will probably be adopted by Congress in 1990.  They also permit the marketing of "transition to organic" foods.

House Committee - Testimony Against:      The bill may inhibit the ability of a dairy to purchase raw goat milk from a traditional supplier.