BILL REQ. #:  S-3574.1 

Read first time 01/11/12.   Referred to Committee on Agriculture, Water & Rural Economic Development.

     AN ACT Relating to the dairy products commission; and amending RCW 15.44.010, 15.44.020, 15.44.021, 15.44.022, 15.44.027, 15.44.030, 15.44.032, 15.44.033, and 15.44.035.

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

Sec. 1   RCW 15.44.010 and 2002 c 313 s 88 are each amended to read as follows:
     ((As used in this chapter:)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commission" means the Washington state dairy products commission((;)).
     ((To)) (2) "Ship" means to deliver or consign milk or cream to a person dealing in, processing, distributing, or manufacturing dairy products for sale, for human consumption, or industrial or medicinal uses((;)).
     (3) "Handler" means ((one)) a person doing business in the state of Washington who purchases milk, cream, or skimmed milk for processing, manufacturing, sale, or distribution((;)).
     (4) "Dealer" means ((one)) a person doing business in the state of Washington who handles, ships, buys, and sells dairy products, or who acts as sales or purchasing agent, broker, or factor of dairy products((;)).
     (5) "Mail" or "send" for purposes of any notice relating to rule making, referenda, or elections means regular mail or electronic distribution, as provided in RCW 34.05.260 for rule making. "Electronic distribution" or "electronically" means distribution by electronic mail or facsimile mail((;)).
     (6) "Processor" means a person doing business in the state of Washington who uses milk or cream for canning, drying, manufacturing, preparing, or packaging or for use in producing or manufacturing any product therefrom((;)).
     (7) "Producer" means a person doing business in the state of Washington who produces milk from cows and sells it for human or animal food, or medicinal or industrial uses((;)).
     (8) "Maximum authorized assessment rate" means the level of assessment most recently approved by a referendum of producers((;)).
     (9) "Current level of assessment" means the level of assessment paid by the producer as set by the commission which cannot exceed the maximum authorized assessment rate.
     (10) "Person" means an individual, firm, corporation, limited liability company, trust, association, partnership, society, or any other organization of individuals, or any unit or agency of local, state, or federal government.

Sec. 2   RCW 15.44.020 and 2008 c 12 s 1 are each amended to read as follows:
     The ((dairy products)) commission shall be composed of ((not more than nine members. There shall be one member from each district who shall be a practical producer of dairy products and one member shall be a)) producers and at least one dealer. The director ((of agriculture)) shall be a voting member of the commission.
     As used in this chapter, "director" means the director of agriculture or his or her authorized representative.

Sec. 3   RCW 15.44.021 and 2008 c 12 s 2 are each amended to read as follows:
     (1) The director shall appoint the members of the commission.
     (2) Candidates for producer member positions on the commission shall be nominated under RCW 15.44.033. The director may select a nominated candidate for a position or may reject all candidates.
     (3) If two candidates are nominated, the director may choose one, reject both, or call for an advisory vote between the two candidates.
In the event there are more than two candidates nominated for the producer member positions, the director shall cause an advisory vote to be held ((for the producer member positions)). Advisory ballots shall be mailed to all ((affected)) producers in the district or area where a vacancy is about to occur and shall be returned to the director not less than thirty days prior to the commencement of the term. The advisory ballot shall be conducted in a manner so that it is a secret ballot. The names of the two candidates receiving the most votes in the advisory vote shall be forwarded to the director for potential appointment to the commission. ((In the event there are only two candidates nominated for a position, an advisory vote may not be held and the candidates' names shall be forwarded to the director for potential appointment. If only one candidate is nominated for a position, the director has the discretion to appoint or reject the candidate.))
     (4) The director may request that any candidate whose name is forwarded to the director for potential appointment ((shall)) submit ((to the director)) a letter stating why he or she wishes to be appointed to the commission. ((The director may select any candidate for the position or may reject all candidates and request a new advisory vote with nominees selected by the commission or, if the commission desires, by the director.))
     (5) If the director rejects one or more of the candidates nominated under RCW 15.44.033, the director may request that the commission provide additional qualified nominees for consideration. Upon receipt of the nomination or nominations, the director may select a candidate, cause an advisory vote to be held, or reject the nominees. If the commission does not submit additional nominees to the director within thirty days of the director's request, the director shall nominate additional candidates for an advisory vote.
     (6) The commission may appoint up to three ex officio, nonvoting members who have expertise in marketing, operations, or other topics relevant to the work of the commission. The term of office for each nonvoting position is one year and may be renewed by the commission.
     (7) The director shall appoint one person to a dealer position, unless the commission adopts rules providing for additional dealer positions on the commission.

Sec. 4   RCW 15.44.022 and 2003 c 396 s 28 are each amended to read as follows:
     (1) To accomplish the transition to ((a commission structure where the director appoints the commission members, the names of the currently elected commission members shall be forwarded to the director for appointment to the commission within thirty days of May 20, 2003. Thereafter, the director shall appoint commission members pursuant to RCW 15.44.021 as the current commission member terms expire)) the newly defined districts and areas as described in RCW 15.44.027, the initial producer appointments are as follows:
     (a) The current incumbent representing district one must be appointed to the new district four position with an expiration date of June 30, 2015;
     (b) The current incumbent representing district two must be appointed to the eastern Washington at-large position with an expiration date of June 30, 2015;
     (c) The current incumbent representing district three must be appointed to the new district one position with an expiration date of June 30, 2013;
     (d) The current incumbent representing district four must be appointed to the new district three position with an expiration date of June 30, 2013;
     (e) The current incumbent representing district five must be appointed to the state at-large position with an expiration date of June 30, 2014;
     (f) The current incumbent representing district six must be appointed to the new western Washington at-large position with an expiration date of June 30, 2014;
     (g) The current incumbent representing district seven must be appointed to the new district two position with an expiration date of June 30, 2014; and
     (h) The current incumbent representing dealers must be appointed to the dealer position with an expiration date of June 30, 2013.
     (2) Thereafter, producer and dealer members are nominated and appointed as provided for under RCW 15.44.021 and 15.44.033.

Sec. 5   RCW 15.44.027 and 2010 c 8 s 6057 are each amended to read as follows:
     ((The commission shall delete, combine, revise, amend, or modify in any manner commission districts and boundaries by regulation as required and in accordance with the intent and provisions of this section. Commission districts established by statute prior to September 8, 1975 shall remain in effect until superseded by such regulations.))
     (1) One producer member of the commission must be appointed from each of the following districts or areas:
     (a) District one, which includes the counties of Whatcom, Skagit, Snohomish, San Juan, Island, and that portion of King county located north of interstate 90;
     (b) District two, which includes the counties of Clallam, Jefferson, Grays Harbor, Kitsap, Mason, Thurston, Pierce, Lewis, Wahkiakum, Cowlitz, Clark, Skamania, and that portion of King county located south of interstate 90;
     (c) District three, which includes the counties of Yakima, Klickitat, and Benton;
     (d) District four, which includes the counties of Kittitas, Grant, Franklin, Walla Walla, Columbia, Garfield, Asotin, Whitman, Adams, Lincoln, Spokane, Douglas, Chelan, Okanogan, Ferry, Stevens, and Pend Oreille;
     (e) Western Washington at-large, which includes that portion of the state of Washington located west of the crest of the Cascade mountains;
     (f) Eastern Washington at-large, which includes that portion of the state of Washington located east of the crest of the Cascade mountains; and
     (g) The state at large, which includes the entire state.
     (2) The commission may adopt rules to eliminate, combine, revise, amend, or otherwise modify commission districts and areas in accordance with the intent and provisions of this chapter. In the event of redistricting, the procedure for transition of appointments to new districts or areas must be set forth in rule. The commission may adopt rules allowing the appointment of additional dealers to the commission.
     (3) The boundaries and numbers of the commission districts or areas shall be maintained in a manner that ((assures)) ensures each producer a representation in the commission which is reasonably equal with the representation afforded all other producers by their commission members and maintains reasonable apportionment for each historical production or marketing area. However, the requirement of this section for reasonable equal representation of each producer on the commission does not require an equality of representation when the commission districts east of the crest of the Cascade mountains are compared to the commission districts west of the crest of the Cascade mountains.
     (4) The commission shall, when requested in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW as enacted or hereafter amended, or on its own initiative, hold hearings to determine if new boundaries for each commission district or area should be established in order to afford each producer a reasonably equal representation in the commission, and if the commission so finds it shall change the boundaries of ((said)) the commission districts or areas to carry out the proper reapportionment of producer representation on the commission((: PROVIDED, That the requirement of this section for reasonable equal representation of each producer on the commission need not require an equality of representation when the commission districts east of the crest of the Cascade mountains are compared to the commission districts west of the crest of the Cascade mountains: PROVIDED FURTHER, That the area east of the crest of the Cascade mountains shall comprise not less than two commission districts.
     The commission may in carrying out this reapportionment directive reduce the number of districts presently provided by prior law, whenever it is in the best interest of the producers and if such change would maintain reasonable apportionment for each historical production or marketing area: PROVIDED, That each elected commission member whose district may be consolidated with another district shall be allowed to serve out his or her term of office)).
     (5) A review of boundaries and areas must be conducted by the commission at least every five years and take into consideration the distribution of producers, the number of head, production levels, and other relevant factors as determined by the commission. If the commission fails to carry out its ((directive)) responsibilities as set forth ((herein for equal representation of each producer on the commission)) in this section, the director ((of agriculture)) may upon request by ten producers institute a hearing to determine if there is reasonably equal representation for each producer on the commission. If the director ((of agriculture)) finds that such reasonably equal representation is lacking, he or she then shall realign the district boundaries in a manner which will provide proper representation on the commission for each producer.

Sec. 6   RCW 15.44.030 and 2008 c 12 s 3 are each amended to read as follows:
     Each of the producer members of the commission shall:
     (1) Be a citizen and resident of this state and the district or area which he or she represents; and
     (2) Be and for the five years last preceding his or her election have been actually engaged as an owner or shareholder in producing dairy products within this state. These qualifications must continue during each member's term of office.
     The dealer member shall be actively engaged as a dealer in dairy products or employed in a dealer capacity as an officer or employee at management level in a dairy products organization.

Sec. 7   RCW 15.44.032 and 2008 c 12 s 4 are each amended to read as follows:
     (1) Except as provided in this section for initial appointments after redistricting or boundary modification, the ((regular)) term of office of each producer member of the commission shall be three years. Commission members shall ((be first nominated and elected in 1966 in the manner set forth in RCW 15.44.033 and shall take office as soon as they are qualified. However, expiration of the term of the respective commission members first elected in 1966 shall be as follows:
     (1) District I and II on July 1, 1967;
     (2) District III and IV on July 1, 1968; and
     (3) District V, VI and VII on July 1, 1969.
     The respective terms shall end on July 1st of each third year thereafter)) continue to serve their terms until new appointments are made.
     (2) Any vacancies that occur on the commission shall be filled by appointment by the director from a list containing the names of a candidate or candidates forwarded to the director by the commission. ((If only one name is forwarded,)) The director has the discretion to appoint or reject the candidate or candidates and, if the candidate or candidates are rejected, request additional candidates. The appointee shall hold office for the remainder of the term for which he or she is appointed to fill, so that commission memberships shall be on a uniform staggered basis.
     ((The term of office of the first dealer appointed by the director shall expire July 1, 1977.)) (3) The term of office of each dealer shall be three years or until such time as a successor is duly appointed. Any vacancy for a dealer shall be forthwith filled by the director. The director, in making any dealer appointments ((set forth herein)), may consider lists of nominees supplied by dealers or producers also acting as dealers.

Sec. 8   RCW 15.44.033 and 2003 c 396 s 26 are each amended to read as follows:
     (1) Producer members of the commission shall be nominated by producers within the district or area that such producer members represent ((in the year in which a commission member's term shall expire)).
     (2) Nomination for candidates to be appointed to the commission shall be conducted by mail by the director. Such nomination forms shall be mailed by the director to each producer in a district or area where a vacancy is about to occur. Such mailing shall be made on or after April 1st, but not later than April 10th of the year the ((commission vacancy will occur)) incumbent's term will expire. The nomination form shall provide for the name of the ((producer being nominated)) nominee and the names of five other producers nominating such nominee. The producers nominating such nominee shall ((affix their signatures to such)) sign the form and shall further attest that the ((said)) nominee meets the qualifications for a producer member to serve on the commission and that he or she will be willing to serve on the commission if appointed.
     (2) All nominations as provided for ((herein)) in this section shall be returned to the director by April 30th, and the director shall not accept any nomination postmarked later than midnight April 30th, nor place the candidate thereon on the advisory ((election)) ballot.
     (3) Advisory vote ballots for ((electing)) appointing nominees to the commission will be mailed by the director to all eligible producers no later than May 15th, in districts or areas where advisory ((elections)) votes are to be held and such ballots to be valid shall be returned postmarked no later than May 31st of the year mailed, to the director in Olympia.
     (4) The director shall determine whether the persons nominated possess the qualifications required by statute for the position.

Sec. 9   RCW 15.44.035 and 2003 c 396 s 27 are each amended to read as follows:
     (1) The commission shall prior to each advisory ((election)) vote, in sufficient time to satisfy the requirements of RCW 15.44.033, furnish the director with a list of all producers within the district or area for which the advisory ((election)) vote is being held. The commission shall require each dealer and shipper in addition to the information required under RCW 15.44.110 to furnish the commission with a list of names of producers whose milk they handle.
     (2) Any producer may on his or her own motion file his or her name with the commission for the purpose of receiving notice of the advisory ((election)) vote.
     (3) It is the responsibility of each producer to ensure that his or her correct address is filed with the commission.
     (4) For all purposes of giving notice, holding referenda, and conducting advisory votes for nominees to the commission, the applicable list of producers corrected up to the day preceding the date the list is certified and mailed to the director is deemed to be the list of all producers or handlers, as applicable, entitled to notice or to vote. The list shall be corrected and brought up-to-date in accordance with evidence and information provided to the commission.