WSR 98-02-073

PROPOSED RULES

DEPARTMENT OF AGRICULTURE

[Filed January 7, 1998, 10:56 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-19-100.

Title of Rule: Chapter 16-532 WAC, Hop Board.

Purpose: Amend the assessment and collection procedures of the board of the Washington Hop Commission.

Statutory Authority for Adoption: RCW 15.65.050.

Statute Being Implemented: Chapter 15.65 RCW.

Summary: The rule will eliminate the authority of the board of the Washington Hop Commission to grant credit against assessments or refund payments to growers for individual marketing efforts.

Reasons Supporting Proposal: The credit and refund program for individual marketing efforts is no longer required or necessary to carry out the objectives of the chapter.

Name of Agency Personnel Responsible for Drafting: Walter Swenson, Washington State Department of Agriculture, NRB, 1111 Washington Street, Olympia, WA, (360) 902-1928; Implementation and Enforcement: Ann George, Administrator, 504 North Naches Avenue, #11, Yakima, WA, (509) 453-4749.

Name of Proponent: Washington Hop Commission, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: I/A/W RCW 15.65.050, the hop growers petitioned the director of agriculture to amend the assessment and collection procedures of the Hop Board.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The current rule provides a procedure for the Hop Commission board to grant credit against assessments or refund payment to growers for individual marketing efforts. The credit or refund is in the amount of sixty-six and two thirds percent of documented expenditures for eligible promotional expenses - not to exceed that portion of the producer's annual assessment from his or her own production designated for marketing or promotion. The credit and refund program for individual marketing efforts is no longer required or necessary to carry out the objectives of the chapter. The new rule will eliminate the credit/refund procedures.

Proposal Changes the Following Existing Rules: The new rule will amend the assessment and collection procedures of the Hop Board by eliminating the procedure for granting credit against assessments or refund payments to hop growers for individual marketing efforts.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The rule will only affect hop growers in Washington state and will only become effective with the approval of a majority of hop growers voting in a referendum. There will be no disproportionate cost to small businesses because producers of hops in Washington state are considered small businesses (less than fifty full-time, year-round employees). The rule will not increase cost in equipment, supplies, labor or administrative expenses.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The Washington State Department of Agriculture is not a listed agency in section 201.

Hearing Location: Branding Iron Restaurant, 61311 Highway 97, Toppenish, WA, on February 17, 1998, at 9:00 a.m.

Assistance for Persons with Disabilities: Contact Cathy Jensen by February 13, 1998, TDD (360) 902-1996, or (360) 902-1976.

Submit Written Comments to: Walter Swenson, Agricultural Programs Administrator, Washington Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, FAX (360) 902-2092, by February 17, 1998.

Date of Intended Adoption: April 30, 1998.

January 7, 1998

William E. Brookreson

Assistant Director

AMENDATORY SECTION (Amending WSR 97-17-096, filed 8/20/97, effective 9/20/97)

WAC 16-532-010 Definitions. For the purpose of this marketing order:

(1) "Director" means the director of agriculture of the state of Washington or his duly appointed representative.

(2) "Department" means the department of agriculture of the state of Washington.

(3) "Act" means the Washington State Agricultural Enabling Act of 1961 or chapter 15.65 RCW.

(4) "Person" means any person, firm, association or corporation.

(5) "Affected producer" or "producer" means any person who produces hops in commercial quantities in the state of Washington.

(6) "Commercial quantity" means any hops produced for market by a producer in any calendar year.

(7) "Handler" means any person who acts as principal or agent or otherwise in processing, selling, marketing, or distributing hops not produced by him.

(8) "Hop commodity board" hereinafter referred to as "board" means the commodity board formed under the provisions of WAC 16-532-020.

(9) "Hops" means and includes all kinds and varieties of "humulus lupulus" grown, picked and dried in the state of Washington, whether loose, packaged or baled and all oils, extracts and/or lupulin derived therefrom.

(10) "Processed" means and includes all hops which are converted into pellets, extracts, oils, lupulin, and/or other forms, including hops which are frozen in undried form, but excluding whole, dried hop cones, whether loose or baled.

(11) "Marketing season" means the twelve month period beginning with January 1 of any year and ending December 31, both dates being inclusive.

(12) "Producer-handler" means any person who acts both as a producer and as a handler with respect to hops. A producer-handler shall be deemed to be a producer with respect to the hops which he produces and a handler with respect to the hops which he handles, including those produced by himself.

(13) "Affected area" means the state of Washington.

(14) "Sell" includes offer for sale, expose for sale, have in possession for sale, exchange, barter or trade.

(15) "Affected unit" means two hundred pounds net of hops, or the amount of lupulin, extract or oil produced from two hundred pounds net of hops.

(16) "Promotional hosting" as used in these rules means the hosting of individuals and groups of individuals at meetings, meals, and gatherings for the purpose of cultivating trade relations and promoting sales of Washington grown hops.

(17) "Hosting" may include providing meals, refreshments, lodging, transportation, gifts of nominal value, reasonable and customary entertainment, and normal incidental expenses at meetings or gatherings.

(((18) "Affiliate" as used in these rules, means a corporation, limited liability company, partnership, or other entity in common ownership with a producer or producer-handler.))

[Statutory Authority: RCW 15.65.050. 97-17-096, 16-532-010, filed 8/20/97, effective 9/20/97. Statutory Authority: RCW 15.65.050 and 15.65.430. 96-15-139, 16-532-010, filed 7/24/96, effective 8/24/96. Statutory Authority: Chapter 15.65 RCW. 92-09-068, 16-532-010, filed 4/14/92, effective 5/15/92; Marketing Order Article I, A, filed 7/1/64.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 16-532-0402 Credit for market promotion activities.

WAC 16-532-0404 General requirements for credit.

WAC 16-532-0406 Eligible activities.

WAC 16-532-0408 No duplication of credit.

WAC 16-532-0410 Filing of claims.

WAC 16-532-0412 Time for filing and determinations.