BILL REQ. #:  H-2239.4 

Read first time 04/14/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to making changes to statutes administered by the department of agriculture in order to allow for a decrease in the department of agriculture's reliance on the general fund; and amending RCW 15.36.051, 15.36.081, 15.36.551, 15.36.525, 69.07.040, 69.07.103, 69.10.015, 69.25.050, 69.25.250, and 16.49.035.

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

Sec. 1   RCW 15.36.051 and 2005 c 414 s 1 are each amended to read as follows:
     (1) A milk processing plant must obtain an annual milk processing plant license from the department, which shall expire on June 30th of each year. A milk processing plant may choose to process (((1))):
     (a) Grade A milk and milk products((, or (2))); or
     (b) Other milk products that are not classified grade A.
     (2)(a) Only one license may be required to process milk((;)). However, milk processing plants must obtain the necessary endorsements from the department in order to process products as defined for each type of milk or milk product processing.
     (b) The application for a license ((shall)) must be on a form prescribed by the director and accompanied by a ((fifty-five)) one hundred fifty dollar annual license fee. The applicant ((shall)) must include on the application the full name of the applicant for the license ((and)), the location of the milk processing plant ((he or she intends to operate)) intended to be operated, and any other necessary information.
     (c) Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable rules adopted under this chapter by the department, the applicant shall be issued a license or a renewal of a license.
     (3) Licenses shall be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. If a license holder wishes to engage in processing a type of milk product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities, the licensee ((shall)) must submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of milk product only after the amendment has been approved by the department.
     (4) A licensee under this section ((shall not be)) is not required to obtain a food processing plant license under chapter 69.07 RCW to process milk or milk products.
     ((The director shall waive the fee for a food processing license under chapter 69.07 RCW for persons who are also licensed as a milk processing plant.))

Sec. 2   RCW 15.36.081 and 1999 c 291 s 5 are each amended to read as follows:
     (1) A dairy technician must obtain a dairy technician's license to conduct operations under this chapter. ((Such)) The dairy technician license ((shall)) must be limited to those functions which the licensee has been found qualified to perform. Before issuing the license, the director shall assess the applicant's qualifications and may test the applicant for the functions for which application has been made.
     (2) An application for a license as a dairy technician ((shall)) must be made upon forms provided by the director((,)) and ((shall be)) filed with the department. The director may issue a temporary license to the applicant for such period as may be prescribed and stated in the license, not to exceed sixty days, but the license may not be renewed to extend the period beyond sixty days.
     ((The)) (3) Initial and renewal applications for a dairy technician's license must be accompanied by a license fee of ((ten dollars. The fee for renewal of the license is five dollars)) thirty-five dollars. All additional endorsements for a laboratory analysis are an additional thirty-five dollars. All dairy technicians' licenses ((shall)) expire on December 31st of odd-numbered years.
     (4) Fees collected under this section must be deposited in the agricultural local fund.

Sec. 3   RCW 15.36.551 and 2010 c 17 s 1 are each amended to read as follows:
     (1) There is levied on all milk processed in this state an assessment ((not to exceed fifty-four one-hundredths of one cent)) of 0.02145 cents per hundredweight. The director shall determine, by rule, an assessment, that ((with contribution from the general fund,)) will support an inspection program to maintain compliance with the provisions of the pasteurized milk ordinance of the national conference on interstate milk shipment. All assessments shall be levied on the operator of the first milk processing plant receiving the milk for processing. This shall include milk processing plants that produce their own milk for processing and milk processing plants that receive milk from other sources. ((Milk processing plants whose monthly assessment for receipt of milk totals less than twenty dollars in any given month are exempted from paying this assessment for that month.))
     (2)(a) All moneys collected under this section shall be paid to the director by the twentieth day of the succeeding month for the previous month's assessments. The director shall deposit the funds into the dairy inspection account hereby created within the agricultural local fund established in RCW 43.23.230. The funds ((shall)) must be used only to provide inspection services to the dairy industry.
     (b) If the operator of a milk processing plant fails to remit any assessments, that sum shall be a lien on any property owned by him or her, and shall be reported by the director and collected in the manner and with the same priority over other creditors as prescribed for the collection of delinquent taxes under chapters 84.60 and 84.64 RCW.
     (3) This section expires June 30, 2015.

Sec. 4   RCW 15.36.525 and 1999 c 291 s 25 are each amended to read as follows:
     The department may issue sanitary certificates to milk processing plants under this chapter subject to such requirements as it may establish by rule. The fee for issuance is ((fifty)) one hundred twenty-five dollars per certificate. Fees collected under this section shall be deposited in the agricultural local fund.

Sec. 5   RCW 69.07.040 and 1995 c 374 s 21 are each amended to read as follows:
     (1)(a) It ((shall be)) is unlawful for any person to operate a food processing plant or process foods in the state without first having obtained an annual license from the department, which ((shall)) expires on a date set by rule by the director.
     (b) License fees ((shall)) must be prorated where necessary to accommodate staggering of expiration dates. An application for a license ((shall)) must be on a form prescribed by the director and accompanied by the license fee. The license fee is determined by computing the gross annual sales for the accounting year immediately preceding the license year. If the license is for a new operator, the license fee shall be based on an estimated gross annual sales for the initial license period.

     If gross annual sales are:               The license fee is:
     $0 to $50,000                              (($55.00)) $275.00
     $50,001 to $500,000                         (($110.00)) $550.00
     $500,001 to $1,000,000                    (($220.00)) $1,100.00
     $1,000,001 to $5,000,000                    (($385.00)) $1,925.00
     $5,000,001 to $10,000,000                    (($550.00)) $2,750.00
     Greater than $10,000,000                    (($825.00)) $4,125.00

((Such))
     (2)(a) The application ((shall)) for a license must include the following:
     (i) The full name of the applicant for the license and the location of the food processing plant he or she intends to operate((. If such));
     (ii) If the applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation ((shall)) must be given on the application. ((Such application shall further state));
     (iii) The principal business address of the applicant in the state and elsewhere ((and));
     (iv) The name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant((. The application shall also specify));
     (v) The type of food to be processed and the method or nature of processing operation or preservation of that food and any other necessary information.
     (b) Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted ((hereunder)) by the department, the applicant shall be issued a license or renewal ((thereof)).
     (c) Licenses ((shall)) must be issued to cover only those products, processes, and operations specified in the license application and approved for licensing. ((Wherever)) If a license holder wishes to engage in processing a type of food product that is different than the type specified on the application supporting the licensee's existing license and processing that type of food product would require a major addition to or modification of the licensee's processing facilities or has a high potential for harm, the licensee ((shall)) must submit an amendment to the current license application. In such a case, the licensee may engage in processing the new type of food product only after the amendment has been approved by the department.
     (d) If upon investigation by the director, it is determined that a person is processing food for retail sale and is not under permit, license, or inspection by a local health authority, then that person may be considered a food processor and subject to the provisions of this chapter. The director may waive the licensure requirements of this chapter for a person's operations at a facility if the person has obtained a milk processing plant license under chapter 15.36 RCW to conduct the same or a similar operation at the facility.

Sec. 6   RCW 69.07.103 and 2009 c 114 s 1 are each amended to read as follows:
     (1) A special permit issued by the department under this section is required for the slaughter, preparation, and sale of one thousand or fewer poultry in a calendar year by a poultry producer for the sale of whole raw poultry directly to the ultimate consumer at the producer's farm. Activities conducted under the permit are exempt from any other licensing requirements of this chapter.
     (2)(a) The department must adopt by rule requirements for the permit. The requirements must be generally patterned after those established by the state board of health for temporary food service establishments, but must be tailored specifically to poultry slaughter, preparation, and sale activities. The requirements must include, but are not limited to, those for: Cooling procedures, when applicable; sanitary facilities, equipment, and utensils; clean water; washing and other hygienic practices; and waste and wastewater disposal.
     (b) A permit expires December 31st and may be issued for either one or two years as requested by the permit applicant upon payment of the applicable fee in accordance with subsection (4) of this section.
     (3) The department shall conduct such inspections as are reasonably necessary to ensure compliance with permit requirements.
     (4) The fee for a special permit is ((seventy-five)) one hundred fifty dollars for one year, or ((one hundred twenty-five)) two hundred fifty dollars for two years.

Sec. 7   RCW 69.10.015 and 1995 c 374 s 10 are each amended to read as follows:
     (1) Except as provided in this section and RCW 69.10.020, it ((shall be)) is unlawful for any person to operate a food storage warehouse in the state without first having obtained an annual license from the department((, which shall)). The license expires on a date set by rule by the director. Application for a license or license renewal ((shall)) must be on a form prescribed by the director and accompanied by the license fee. The license fee is ((fifty)) five hundred dollars.
     (2) For a food storage warehouse that has been inspected on at least an annual basis for compliance with the provisions of the current good manufacturing practices (Title 21 C.F.R. part 110) by a federal agency or by a state agency acting on behalf of and under contract with a federal agency and that is not exempted from licensure by RCW 69.10.020, the annual license fee for the warehouse is two hundred twenty-five dollars.
     (3)(a) The application ((shall)) must include the full name of the applicant for the license and the location of the food storage warehouse ((he or she intends to operate)) intended to be operated. If ((such)) the applicant is an individual, receiver, trustee, firm, partnership, association, or corporation, the full name of each member of the firm or partnership, or names of the officers of the association or corporation must be given on the application.
     (b) The application ((shall)) must further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant.
     (4) Upon the approval of the application by the director and compliance with the provisions of this chapter, including the applicable regulations adopted under this chapter by the department, the applicant shall be issued a license or renewal ((thereof)). The director shall waive licensure under this chapter for firms that are licensed under the provisions of chapter 69.07 or 15.36 RCW.

Sec. 8   RCW 69.25.050 and 1995 c 374 s 26 are each amended to read as follows:
     (1)(a) No person shall act as an egg handler or dealer without first obtaining an annual license and permanent dealer's number from the department((; such license shall expire on the master license expiration date)).
     (b) Application for an egg dealer license or egg dealer branch license, ((shall)) must be made through the master license system as provided under chapter 19.02 RCW and expires on the master license expiration date.
     (c) The annual egg dealer license fee ((shall be thirty)) is sixty dollars and the annual egg dealer branch license fee ((shall be fifteen)) is thirty dollars.
     (d) A copy of the master license ((shall)) must be posted at each location where ((such)) the licensee operates. ((Such)) The application ((shall)) must include the full name of the applicant for the license and the location of each facility ((he)) the applicant intends to operate.
     (2)(a) If ((such)) an applicant is an individual, receiver, trustee, firm, partnership, association or corporation, the full name of each member of the firm or partnership or the names of the officers of the association or corporation shall be given on the application. ((Such))
     (b) The application ((shall)) must further state the principal business address of the applicant in the state and elsewhere and the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant and any other necessary information prescribed by the director.
     (3) The applicant must be issued a license or renewal under this section upon the approval of the application and compliance with the provisions of this chapter, including the applicable ((regulations)) rules adopted ((hereunder)) by the department((, the applicant shall be issued a license or renewal thereof)). ((Such))
     (4) The license and permanent egg handler or dealer's number ((shall be)) is nontransferable.

Sec. 9   RCW 69.25.250 and 1995 c 374 s 29 are each amended to read as follows:
     (1) There is hereby levied an assessment ((not to exceed three mills)) of 0.00536 cents per dozen eggs entering intrastate commerce, as prescribed by rules and regulations issued by the director. ((Such)) The assessment ((shall be)) is applicable to all eggs entering intrastate commerce except as provided in RCW 69.25.170 and 69.25.290. ((Such)) The assessment ((shall)) must be paid to the director on a monthly basis on or before the tenth day following the month ((such)) the eggs enter intrastate commerce.
     (2) The director may require reports by egg handlers or dealers along with the payment of the assessment fee. ((Such)) The reports may include any and all pertinent information necessary to carry out the purposes of this chapter. The director may, by regulations, require egg container manufacturers to report on a monthly basis all egg containers sold to any egg handler or dealer and bearing such egg handler or dealer's permanent number.

Sec. 10   RCW 16.49.035 and 2000 c 99 s 4 are each amended to read as follows:
     (1) It is unlawful for any person to operate as a custom farm slaughterer or to operate a custom slaughtering establishment or custom meat facility in the state without first obtaining a license from the director. Custom farm slaughterers must obtain a separate license for each mobile unit. Separate licenses are required for each custom slaughtering establishment and custom meat facility.
     (2) Application for a license must be made on a form prescribed by the director and accompanied by a ((twenty-five)) seventy-five dollar license fee. The application must include:
     (a) The full name and address of the applicant. If the applicant is a partnership or corporation, the application must include the full name and address of each partner or officer;
     (b) The physical location address of each establishment or facility to be licensed;
     (c) The name and address of a resident of this state authorized to accept legal notices for the applicant; and
     (d) Any other information prescribed by the director.
     (3) If an application for renewal of a license and the license fee are not received by June 30th, the applicant must pay an additional fee of ((twenty-five)) seventy-five dollars before the renewal license is issued.
     (4) Initial issuance of a license requires a prelicense inspection by the director for compliance with this chapter and rules adopted under this chapter. A license shall only be issued after an applicant is found to be in substantial compliance with this chapter and rules adopted under this chapter.
     (5) Licenses issued under this chapter expire June 30th of each year.
     (6) Licenses issued under this chapter are not transferrable.