Brief Description: Promoting Washington state agriculture.

Sponsors: Senators Swecker, Rasmussen, Mulliken, Winsley and McAuliffe; by request of Department of Agriculture.

Hearing Date: 2/20/04

Staff: Kenneth Hirst (786-7105).

Background:

A "From the Heart of Washington" program was begun by the WSDA in June 2002. The purpose of the program and campaign is to increase demand for Washington agricultural products in state and to identify the value of agriculture as part of the state's economy and its key role in sustaining rural communities.

The program has been funded by a $2.5 million, one-time federal grant to the WSDA. A 14-member advisory committee has been appointed to guide the program; it is chaired by the Director of Agriculture. The WSDA contracts with the Washington Fruit Commission to administer the program.

Summary of Bill:

The WSDA may cooperate with other agencies and associations in the state to establish a private, nonprofit corporation under the Washington Nonprofit Corporation Act for the purpose of carrying out a Heart of Washington program. The corporation: must qualify as a tax-exempt, nonprofit corporation under section 501(c) of the federal Internal Revenue Code; the majority of the members on its board of directors must be from the state's commodity commissions, nonprofit associations organized for the promotion of this state's agricultural products, and other agricultural industry groups; and must carry forward with the work of the current program. The WSDA and others may continue separately to promote Washington products under their existing authorities. (Sections 2 and 3.)

The WSDA may contract with the corporation to carry out the program; however, the corporation must aggressively seek to fund its continued operation from non-state funding sources. The corporation must report to the WSDA each January 1st on the amounts it has secured from both non-state and state funding sources, its operations, and its programs. The debts and other liabilities of the corporation are its own; they may be satisfied only from corporation's resources. The state is not liable for those debts or liabilities. (Section 3.)

To establish the corporation, the WSDA and the State Fruit Commission, as the WSDA's contractor, may take all necessary and proper steps, including: transferring any equipment, software, data base, other assets, or contracts for services to the corporation under certain conditions; assigning contracts and other duties and responsibilities to the corporation; and providing necessary support services under contract for up to two years. The corporation must provide full reimbursement for all costs of services so contracted. The WSDA may pay an annual membership fee to the corporation not to exceed the value of services received. (Sections 4 and 5.)

The transfer authority does not include the authority to transfer the logo. The logo of the program is the property of the WSDA, which may license its use as it deems appropriate. The WSDA retains the right to cancel any license to use the logo. (Sections 4 and 6.)

The WSDA must designate one or more persons to serve in the capacity of a member of the board of directors of the corporation. The state is not liable for the actions of any member of the board of directors nor for the actions of the corporation. (Section 5.)

The WSDA may: receive gifts, grants, or endowments from private or public sources, in trust or otherwise, for the use and benefit of the purposes of the program; and spend or contract with the corporation to spend such items or the income from them according to their terms.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill contains an emergency clause and takes effect immediately.