PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 12-11-119.
Title of Rule and Other Identifying Information: The Washington state department of agriculture fruit and vegetable inspection program inspection fees and other charges.
Hearing Location(s): Wenatchee Inspection Office, 270 9th Street, East Wenatchee, WA 98802, on September 4, 2012, at 1:00 p.m.; and at the Yakima Inspection Office, 21 North 1st Avenue, Yakima, WA 98902, on September 5, 2012, at 10:00 a.m.
Date of Intended Adoption: September 12, 2012.
Submit Written Comments to: Teresa Norman, P.O. Box 42560, Olympia, WA 98504, e-mail WSDARulesComments@agr.wa.gov, fax (360) 902-2085, by 5 p.m., August 23, 2012.
Assistance for Persons with Disabilities: Contact WSDA agency receptionist by calling TTY 1-800-833-6388 or 711.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Amend chapter 16-390 WAC to increase the fruit and vegetable inspection program hourly and overtime inspection fee. These hourly rate increases are necessary to recover the department's actual costs of providing inspection services. Currently, hourly inspection rates are below the costs of providing services.
Reasons Supporting Proposal: The purpose of this rule is to recover the costs of providing inspection service[s] by increasing the hourly inspection rates (regular and overtime). The increased inspection rate will reduce the proportionate disparity of inspection costs between high volume shippers and the lower volume shippers. High volume shippers are generally assessed fees on a per unit basis which usually meets or exceeds the hourly rate for the total inspection time. The lower volume shippers are assessed fees on a per unit basis in addition to the hourly rate to compensate for the total inspection time.
Statutory Authority for Adoption: RCW 15.17.050 and chapter 34.05 RCW; 3ESHB 2127, chapter 7, Laws of 2012.
Statute Being Implemented: Chapter 15.17 RCW, Standards of grades and packs.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state department of agriculture fruit and vegetable inspection program, governmental.
Name of Agency Personnel Responsible for Drafting: Karen Cozzetto, Yakima, Washington, (509) 249-6906; Implementation and Enforcement: Ken Shank, Olympia, Washington and Wenatchee, Washington, (360) 902-1945 and (509) 665-4318.
A small business economic impact statement has been prepared under chapter 19.85 RCW.
The proposed amendments to this chapter include:
• | Increase platform inspection fees for services rendered by the fruit and vegetable inspection program from $32.00 per hour regular time, $42.00 per hour overtime to $50.00 per hour regular time, $75.00 per hour overtime. |
INDUSTRY ANALYSIS: The proposed rule impacts low volume shippers that are assessed fees by the hour. The department has analyzed the proposed rule amendments and has determined that costs are not more than minor on regulated businesses.
INVOLVEMENT OF SMALL BUSINESSES: Small businesses have been involved in writing the proposed rules and in providing the department with the expected costs associated with the fee changes.
Meetings have been conducted with the fruit and vegetable inspection program's advisory board members and at the annual fruit and vegetable advisory board meeting to provide the members of the fruit and vegetable inspection advisory board the opportunity to participate in the process and develop the appropriate amount of the needed increase in the hourly fees. Additional industry interaction included the fruit and vegetable management team talking individually with key members of the fruit and vegetable industry throughout the state.
A small business economic impact assessment survey was mailed to three hundred forty-seven fruit and vegetable businesses to analyze the economic impact of proposed rules on small businesses.
COST OF COMPLIANCE: RCW 19.85.040 directs agencies to analyze the costs of compliance for businesses required to comply with the proposed rule, including costs of equipment, supplies, labor, professional services, and increased administrative costs. Agencies must also consider whether compliance with the rule will result in loss of sales or revenue. RCW 19.85.040 directs agencies to determine whether the proposed rule will have a disproportionate cost impact on small businesses by comparing the cost of compliance for small business with the cost of compliance for ten percent of the largest businesses required to comply with the proposed rules. Agencies are to use one or more of the following as a basis for comparing costs:
• | Cost per employee; |
• | Cost per hour of labor; or |
• | Cost per one hundred dollars of sales. |
ANALYSIS OF COST OF COMPLIANCE: The program analyzed the cost of compliance anticipated by regulated businesses. Fifty-seven small businesses and thirty-nine large businesses returned the small business economic impact survey. Thirty-seven percent of the small businesses surveyed indicated the fees would have an impact on cost of compliance.
The following questions were asked to businesses that may have an impact from an increase in hourly fees for requested inspections.
1. How many employees does your business employ on a full-time year-round basis?
2. Will the business need to create jobs if the hourly rates increase from $32 regular time and $42 overtime to $50 regular time and $75 overtime? If yes, how many?
3. Will the business need to eliminate jobs to comply with the hourly inspection rate increases? If yes, how many?
4. Will the increase in hourly inspection rates cause the business to lose sales or revenue? If yes, how much revenue will be lost?
5. Will your business incur additional costs to comply with an increase in the hourly inspection rates? Compliance costs to be considered are equipment, supplies, labor, increased administration costs, new or professional services. If yes, how much do you estimate the additional compliances [compliance] costs to be per $100 of sales?
The following answers were received from businesses that may have an impact from an increase in hourly fees for requested inspections.
1. Zero - fifty employees.
2. The analysis of the data indicated overwhelmingly, ninety-three percent, that no jobs will be created.
3. Seventy-two percent of the small businesses indicated that no jobs would be lost. However, when asked how many jobs might be lost, twenty-six percent of the respondents indicated that one to two jobs would be lost across the board.
4. The survey was pretty much split in two concerning the loss of sales or revenue with fifty-three percent of the respondents stating there will be no loss of sales or revenue and forty-seven percent stating yes they will lose sales or revenue.
5. In regard to compliance costs the survey indicated that fifty-eight percent of the small businesses will not incur compliance costs to comply with this rule. The survey indicated that thirty-seven percent of the businesses would incur additional compliance costs due to an increase in hourly fees. However, when asked to quantify the loss in compliance costs per $100 in sales the respondents ranged from minimal to one response of $500,000. Most responded and indicated that there would be a minor decrease in profit.
ANALYSIS OF DISPROPORTIONATE ECONOMIC IMPACT: When costs associated with proposed rules are more than minor, the Regulatory Fairness Act requires a comparison of the costs to small businesses with those of ten percent of the largest businesses in the regulated industry. An analysis has shown that the costs small businesses will incur to comply with the proposed rules are not more than minor and are not disproportionate between small and large business entities.
JOBS CREATED OR LOST: Under RCW 19.85.040, agencies must provide an estimate of the number of jobs that will be created or lost as the result of compliance with the proposed rules. In collecting information from representative small businesses through a survey, fourteen of fifty-seven small businesses estimate loss of one to two jobs per company as a result of complying with the proposed rules. The remaining forty-three companies indicated no loss of jobs is anticipated.
CONCLUSION: To comply with chapter 19.85 RCW, the Regulatory Fairness Act, the fruit and vegetable inspection program has analyzed the economic impact of the proposed rules on small businesses and has concluded that the costs are more than minor and there is no disproportionate impact between small and large businesses.
Please contact Ken Shank if you have any questions at kshank@agr.wa.gov or by calling (360) 902-1945 or (509) 665-4318.
A copy of the statement may be obtained by contacting Ken Shank, P.O. Box 42560, Olympia, WA 98504-2560, 270 9th Street N.E., Suite 101-A, East Wenatchee, WA 98802, phone (360) 902-1945 or (509) 665-4318, fax (360) 902-2085 or (509) 663-3030, e-mail kshank@agr.wa.gov.
A cost-benefit analysis is not required under RCW 34.05.328. The Washington state department of agriculture is not a listed agency in RCW 34.05.328 (5)(a)(i).
July 31, 2012
Brad J. Avy
Assistant Director
OTS-4913.1
AMENDATORY SECTION(Amending WSR 04-11-078, filed 5/18/04,
effective 6/18/04)
WAC 16-390-005
((What)) Definitions ((are important to
this chapter?)).
"Certification" means the issuance of an
official document confirming the inspection results for grade,
classification, condition, and the absence or presence of
plant pests or diseases and/or other defects.
"Customer assisted inspection program (CAIP)" means a quality and/or condition inspection performed by industry with verification and oversight by WSDA.
"Department" means the Washington state department of agriculture (WSDA).
"Director" means the director of the department or the director's designated representative.
"Grade and condition certificate" means a document issued by the director of a certification confirming the results of an inspection.
"Inspection" means a review or examination of fruits and vegetables in order to determine quality, condition, and/or presence or absence of pests or diseases and/or other defects.
"Platform inspection" means any inspection and/or certification performed on a lot that has no defined per unit charges for the service.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-005, filed 5/18/04, effective 6/18/04.]
(1) Fruit and vegetable inspection district two, which consists of Kittitas, Klickitat, Skamania, Yakima, Pacific, Lewis, Wahkiakum, Cowlitz, Clark, Benton, Franklin, Walla Walla, Columbia, Asotin, Whitman and Garfield counties; and
(2) Fruit and vegetable inspection district four, which consists of Grays Harbor, Jefferson, Clallam, Island, Mason, Kitsap, Pierce, Thurston, King, Snohomish, Skagit, Grant, Adams, Ferry, Pend Oreille, Stevens, Spokane, Lincoln, San Juan, Whatcom, Chelan, Douglas and Okanogan counties.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-010, filed 5/18/04, effective 6/18/04.]
(1) A minimum charge of ((sixteen)) twenty-five dollars.
(2) The fees for federal-state or state grade and condition certificates of all fresh market apples, pears, and soft fruits in containers (wrapped, place pack, face and fill), bags, master containers, consumer packages, or loose in bulk cartons, boxes, crates, bins, or bags are listed in the following table:
Type of Fruit | Fees per CWT or Fraction Thereof |
Apples on-line for domestic shipping, CA, etc. | $0.17 |
Apples for export | $0.17 |
Apricots, cherries, nectarines, peaches, plums, prunes, other soft fruits, grapes and berries | $0.23 |
Pears | $0.17 |
Pears for export | $0.17 |
(3) The department will give a volume discount for apples and pears that are inspected and certified on-line for domestic shipment, controlled atmosphere certification, etc. Packing of up to 4800 cwt per eight-hour shift, the normal inspection fee will be assessed, and every cwt of product above 4800 cwt for that same shift will be charged at $0.12 cwt. Platform inspection fees will still apply (WAC 16-390-200).
(4) The department charges a fee of three dollars per ton net weight (or fraction thereof) for all apples, pears, stone fruits, berries, and grapes in bulk or in containers that are inspected for processing.
(5) The department charges a fee of ((thirty-two)) fifty
dollars per hour, with a minimum certificate charge of
((sixteen)) twenty-five dollars, when an inspection is
requested only to verify the product, conveyance, markings, or
other factors not related to quality.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25 § 309(2). 05-12-054, § 16-390-020, filed 5/26/05, effective 6/26/05. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-020, filed 5/18/04, effective 6/18/04.]
(1) A minimum charge of ((sixteen)) twenty-five dollars.
(2) The fees for federal-state or state grade and condition certificates for all fresh market vegetables in containers (wrapped, place pack, face and fill), bags, master containers, consumer packages, or loose in bulk cartons, boxes, crates, bins, or bags are listed in the following table:
Type of Vegetables | Fees per CWT or Fraction Thereof |
|
Asparagus | $0.23 | |
Cantaloupes and corn | $0.14 | |
Onions | $0.09 | |
Potatoes | $0.07 | |
In-state processing potatoes | $0.08 | |
Complete inspection | Rate shall be reduced for the level of service required | |
Tomatoes | $0.21 |
(3) For the inspection of vegetables not listed, the
department charges a fee of ((thirty-two)) fifty dollars per
hour.
(4) The department charges a fee of three dollars per ton net weight (or fraction thereof) for the inspection of vegetables to be processed, whether in bulk or in containers.
(5) When an inspection is requested only to verify the
product, conveyance, markings, or other factors not related to
quality, the department charges the rate of ((thirty-two))
fifty dollars per hour, with a minimum certificate charge of
((sixteen)) twenty-five dollars.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25 § 309(2). 05-12-054, § 16-390-030, filed 5/26/05, effective 6/26/05. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-030, filed 5/18/04, effective 6/18/04.]
(1) A minimum charge of ((sixteen)) twenty-five dollars.
(2) The fees for federal-state grade and condition certificates for all fresh market fruits and vegetables in containers (wrapped, place pack, face and fill), bags, master containers, consumer packages, or loose in bulk cartons, boxes, crates, bins, or bags are:
Type of Fruit or Vegetable | Fees per CWT or Fraction Thereof |
Fresh potatoes | Three and one-half cents
per cwt., with a minimum
charge of (( |
All other fresh market fruits and vegetables | Three-fourths of the cwt.
rates specified in WAC 16-390-020(2) and
16-390-030(2) but not less
than the equivalent rate of
(( |
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-040, filed 5/18/04, effective 6/18/04.]
Beans, Peas, Lentils | |
WAC Section | Title |
16-240-010 | Definitions. |
16-240-020 | Washington state grain and commodity service points. |
16-240-030 | Commodities covered by chapter 22.09 RCW. |
16-240-032 | Grades and standards adopted by Washington state. |
16-240-034 | Service requests. |
16-240-036 | Permanent staffing requests. |
16-240-038 | Revenue minimum. |
16-240-040 | Official commercial inspection services. |
16-240-042 | Payment of fees and charges. |
16-240-044 | GIPSA, FGIS scale authorization. |
16-240-046 | Straight time rate. |
16-240-048 | Rates for working outside established business hours (overtime). |
16-240-050 | Calculating travel time, mileage and per diem. |
16-240-052 | Fees for stowage examination. |
16-240-054 | Service cancellation fee. |
16-240-060 | WSDA grain program fees for service. |
16-240-080 | Fees for services under the Agricultural Marketing Act of 1946. |
16-240-090 | Fees for other services performed by WSDA. |
Hay, Straw | |
WAC Section | Title |
16-470-900 | Schedule of fees and charges -- Billing policies and procedures. |
16-470-912 | Schedule of fees and charges -- Applicable fees and charges. |
[Statutory Authority: RCW 15.17.030 and chapter 34.05 RCW. 08-22-084, § 16-390-060, filed 11/4/08, effective 12/5/08. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-060, filed 5/18/04, effective 6/18/04.]
Type of Certificate Requested | Fee |
Consolidation certificates | Fees are specified in WAC 16-390-020 and 16-390-030 with an added charge of three dollars for each additional lot. |
Condition certificates for previously inspected lots | Fee is two-thirds of the fee
charged for grade and
condition certificates, with
a minimum charge of
(( |
Condition certificates for lots not previously inspected for quality or grade with a request that the certificate carry out-bound car, truck, or state lot number | Fees are based upon the applicable grade and condition certificate schedules. |
Out-of-state products reported on state certificates | Fees are based either upon
the applicable grade and
condition certificate
schedule or a charge of
(( |
A state condition certificate or quality control inspection for previously certified controlled atmosphere storage apple lots | A state condition certificate or quality control inspection may be issued without additional charge. |
Sanitary and quarantine certificates for fruits and vegetables | (( |
Container weight, or check loading certificates | Fee is charged at the rates specified in WAC 16-390-200(1). |
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-100, filed 5/18/04, effective 6/18/04.]
(2) Shipments of apricots, cherries, peaches, prunes, and asparagus to processors do not require a shipping permit.
(3) A permit or certificate of compliance may be issued without additional charge if the lot is certified.
(4) If the lot has not been certified, a permit or certificate of compliance may be issued based upon the following charges:
(a) The minimum charge for a permit or certificate of compliance is three dollars.
(b) Two-thirds of the rate for federal-state or state grade and condition certificates applies.
(c) A permit to ship apples and/or pears to a by-product plant outside the state is three dollars.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25 § 309(2). 05-12-054, § 16-390-150, filed 5/26/05, effective 6/26/05. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-150, filed 5/18/04, effective 6/18/04.]
(2) When a platform inspector is working full time at one
house and is also doing certification inspections, the
inspector must allow credit, according to the limits outlined
in the schedule for such inspections, for the time spent on
the inspection at the rate of ((thirty-two)) fifty dollars per
hour.
(a) Platform fees will not be assessed if the certificate cwt. fee divided by the respective hourly rates is equal to or exceeds the number of hours worked.
(b) Platform fees will be assessed if the certificate
cwt. fee divided by the respective hourly rates is less than
the number of hours worked. The amount assessed will be
sufficient to make the total fee equal to the number of hours
worked multiplied by the ((thirty-two)) fifty dollars per hour
rate.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-200, filed 5/18/04, effective 6/18/04.]
(2) The department will charge for any additional stand-by time at the rate specified in WAC 16-390-200(1).
(3) In facilities that are either temporary or without adequate devices for maintaining acceptable treatment temperatures, fumigations must not start after:
(a) 3:00 p.m. from October 1 to May 31; or
(b) 10:00 p.m. from June 1 to September 30.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-210, filed 5/18/04, effective 6/18/04.]
(1) Three dollars per acre or fraction thereof; or
(2) At the platform inspection rate specified in WAC 16-390-200(1).
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25 § 309(2). 05-12-054, § 16-390-220, filed 5/26/05, effective 6/26/05. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-220, filed 5/18/04, effective 6/18/04.]
[Statutory Authority: Chapters 15.17, 17.24, and 34.05 RCW. 08-21-068, § 16-390-230, filed 10/13/08, effective 11/13/08. Statutory Authority: Chapters 15.17 and 34.05 RCW. 06-19-008, § 16-390-230, filed 9/8/06, effective 10/9/06. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-230, filed 5/18/04, effective 6/18/04.]
[Statutory Authority: Chapters 15.17 and 34.05 RCW. 07-16-084, § 16-390-240, filed 7/30/07, effective 8/30/07. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-240, filed 5/18/04, effective 6/18/04.]
(1) The hourly rate for audit time, administration time and applicable travel time is seventy-five dollars per audit hour.
(2) Mileage related to GAP and GHP audit services is charged at the rate established by the office of financial management (OFM) at the time the service was performed.
[Statutory Authority: Chapters 15.17 and 34.05 RCW. 07-16-084, § 16-390-242, filed 7/30/07, effective 8/30/07. Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-242, filed 5/18/04, effective 6/18/04.]
(2) The department may add an additional charge of ten percent if an inspector is required to be on-site when no other inspections are requested.
(3) The department responds to requests for positive lot identification services in the following order:
(a) First priority is given to those situations where positive lot identification is a mandatory condition of a sales transaction.
(b) All other requests will be honored based upon adequate notice to the inspection service and the availability of inspectors.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-245, filed 5/18/04, effective 6/18/04.]
(2) The charge for mileage related to inspection and certification services is at the rate established by the office of financial management (OFM) at the time the service was performed.
(3) The department may charge for telegrams, facsimile, or electronic transmission of inspection documents at the rate of four dollars per transmission in addition to any Western Union charges made directly to the applicant.
(4) The cost of extra copies of original documents is four dollars per set.
(5) The department may charge twenty-five cents per copy for Xerox copies of inspectors' notes, certificates or related documents.
(6) When, through no fault of the inspection service, it is necessary to retype or reissue a document, the cost of retyping or reissuing the document is four dollars per set.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-250, filed 5/18/04, effective 6/18/04.]
(1) The minimum inspection charge for each commodity and
requested document is ((sixteen)) twenty-five dollars.
(2) If, through no fault of the inspection service,
excess time is required over the maximum time allowed (as
supported by unit rates for each commodity and requested
document) the excess time is charged at the rate of
((thirty-two)) fifty dollars per hour.
(3)(a) For all inspection services performed beyond a
regularly scheduled eight-hour week day shift or on Saturdays,
or Sundays, or state legal holidays, a rate equivalent to
((forty-two)) seventy-five dollars will be charged for actual
hours spent in performance of duties. Such charges include
unit charges, plus, if necessary, overtime charges to equal
the respective overtime hourly rates.
(b) The following are state legal holidays:
Holiday | Date |
New Year's Day | January 1 |
Martin Luther King, Jr. Day | Third Monday in January |
Presidents' Day | Third Monday in February |
Memorial Day | Last Monday of May |
Independence Day | July 4 |
Labor Day | First Monday in September |
Veteran's Day | November 11 |
Thanksgiving Day | Fourth Thursday in November |
Day following Thanksgiving Day | Fourth Friday in November |
Christmas Day | December 25 |
(4) Additional hourly or overtime charges will not be assessed when the per unit inspection charge in any one day equals or exceeds the basic hourly and/or overtime charge.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-260, filed 5/18/04, effective 6/18/04.]
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-270, filed 5/18/04, effective 6/18/04.]
(2) If your payment is not received within thirty days, service may be withheld until your delinquent account is paid.
(3) If your account is delinquent, the department may require that you pay cash for subsequent services.
(4) The department assesses a penalty of eighteen percent per annum on all delinquent account balances.
[Statutory Authority: Chapters 15.17, 34.05 RCW, and 2003 1st sp.s. c 25. 04-11-078, § 16-390-280, filed 5/18/04, effective 6/18/04.]