AN ACT Relating to an orchard revitalization program; creating a new chapter in Title 15 RCW; making an appropriation; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that, in order to stabilize the economy of central Washington, the acreage devoted to the production of Red Delicious apples must be reduced to bring supply and demand to balance at a point where production of Red Delicious apples is an economically viable activity, it is necessary for the state to assist in financing an orchard revitalization program to reduce Red Delicious apple acreage. The state's assistance shall, if approved by a referendum of Red Delicious apple growers as provided in section 10 of this act, be in the amount of twenty-seven million dollars, or so much thereof as may be required, to be provided from the proceeds from the sale and issuance of general obligation bonds of the state, the principal and interest of which shall be reimbursed to the state treasury by the department from revenues derived from the assessments levied under section 13 of this act.

NEW SECTION. Sec. 2. For the purpose of providing the funds necessary for the department to undertake an orchard revitalization program consisting of the removal of producing Red Delicious apple acreage, and to pay the administrative costs of such project, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, and other expenses incidental to the administration of the project, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of twenty-seven million dollars, or so much thereof as may be required.

NEW SECTION. Sec. 3. The bonds authorized in section 2 of this act shall be issued and sold in accordance with chapter 39.42 RCW.

NEW SECTION. Sec. 4. The proceeds from the sale of the bonds authorized in section 2 of this act, together with all grants, donations, transferred funds, and all other moneys which the state finance committee or the department may direct the state treasurer to deposit therein, shall be deposited in the orchard revitalization account, hereby created, in the state treasury.

NEW SECTION. Sec. 5. Subject to legislative appropriation, all proceeds from the sale of the bonds authorized in section 2 of this act shall be administered and expended by the department exclusively for the purposes specified in section 2 of this act.

NEW SECTION. Sec. 6. The state general obligation bond retirement fund shall be used for the payment of the principal of and interest on the bonds authorized to be issued under section 2 of this act. The state finance committee may provide for the creation of one or more separate accounts in such fund to facilitate payment of such principal and interest.

On or before June 30th of each year, the state finance committee shall certify to the state treasurer the amounts required in the next succeeding twelve months for the payment of the principal of and the interest on such bonds coming due in accordance with the provisions of the bond proceedings. Not less than thirty days before the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state general obligation bond retirement fund, or a special account in such fund, the amount certified by the state finance committee to be due on the payment date.

NEW SECTION. Sec. 7. On or before June 30th of each year, the state finance committee shall certify to the department the principal and interest payments determined under section 6 of this act, exclusive of deposit interest credit, attributable to the bonds issued under section 2 of this act. On each date on which any interest or principal and interest payment is due, the department shall cause the amount certified by the state finance committee to be due on such date to be paid out of the agricultural local fund to the state treasurer for deposit into the general fund of the state treasury.

NEW SECTION. Sec. 8. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 2 of this act, and sections 6 and 7 of this act shall not be deemed to provide an exclusive method for the payment of the principal and interest.

NEW SECTION. Sec. 9. The bonds authorized by section 2 of this act shall constitute legal investments for all state funds or for funds under state control and all funds of any other public body.

NEW SECTION. Sec. 10. The bonds authorized by section 2 of this act shall be issued only after the director of agriculture has certified the results of a referendum of producers of Red Delicious apples approving assessments necessary to repay all costs of the program. The referendum will be considered approved if at least sixty percent of the producers voting representing at least sixty percent of the acreage in production cast positive ballots. Thirty percent of the ballots sent must be cast to validate the referendum.

NEW SECTION. Sec. 11. The director shall, upon the effective date of this act, begin the process of conducting a referendum of Red Delicious apple producers to approve or reject an assessment on packed boxes of Red Delicious apples for the purpose of reimbursing the agricultural local fund for all costs associated with the orchard revitalization program. The director shall mail the referendum ballot to all persons listed on the affected producers list maintained by the Washington apple advertising commission, and the referendum is not subject to other statutory requirements regarding public hearing or publication of notice of referendum. Each producer shall certify the number of acres of producing Red Delicious orchards, to the nearest whole acre, on ballots returned to the director. The director will find that producers have assented to the assessment if at least sixty percent of the producers voting who represent at least sixty percent of the total Red Delicious acreage voted cast affirmative ballots.

NEW SECTION. Sec. 12. The director shall adopt rules necessary to implement an orchard revitalization program that will consist of the director contracting with producers of Red Delicious apples for the removal of apple trees. The director will award contracts for tree removal to the lowest bidders subject to the limitations of the program. The rules for this program shall include but are not limited to the following provisions: (1) That the program be limited to Red Delicious variety trees; (2) that the minimum acreage bid be one acre; (3) that all Red Delicious trees, including root parts, be removed in each bid area; (4) that trees in the bid area must be at least five years old; (5) that acreage bid has been in commercial production with deliveries of fruit to packing houses and for processors for each of the last two years; (6) that the maximum acceptable bid not exceed two thousand dollars per acre; (7) that producers cannot replant Red Delicious apple trees on that acreage for a period of three years.

NEW SECTION. Sec. 13. By September 1st each year, the director shall set by rule the rate of assessment per hundredweight necessary to reimburse the agricultural local fund for all the costs of the program, with the maximum rate per year limited to the equivalent of fifteen cents per box. The annual assessment shall remain in effect until the bonds issued to finance the program are retired.

NEW SECTION. Sec. 14. The sum of twenty-seven million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the orchard revitalization account to the department of agriculture for the purposes described in section 2 of this act.

NEW SECTION. Sec. 15. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 16. Sections 1 through 13 of this act shall constitute a new chapter in Title 15 RCW.

NEW SECTION. Sec. 17. 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 shall take effect immediately.