Preproposal statement of inquiry was filed as WSR 98-08-099.

Title of Rule: Chapter 16-557 WAC, Washington Asparagus Commission. Adopt rules governing promotional hosting expenses.

Purpose: Agricultural commodity commissions are authorized to make expenditures for promotional hosting for agricultural development and trade promotion. These rules will establish guidelines for expenditures.

Statutory Authority for Adoption: RCW 15.04.200.

Statute Being Implemented: RCW 15.65.380.

Summary: The rule established budgeting requirements and guidelines for expenditures of funds for promotional hosting on approved activities of the commission.

Reasons Supporting Proposal: RCW 15.04.200(2) requires agricultural commodity commissions to adopt rules governing promotional hosting if commission funds are used for market development and trade promotion activities authorized in the marketing order.

Name of Agency Personnel Responsible for Drafting: Walter Swenson, Natural Resources Building, 1111 Washington Street, Olympia, WA, (360) 902-1928; Implementation and Enforcement: Mike Harker, 2705 St. Andrews Loop, Pasco, WA, (509) 544-9363.

Name of Proponent: Washington Asparagus Commission, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The Washington Asparagus Commission has the authority to adopt rules of a technical or administrative nature subject to provisions of chapter 34.05 RCW.

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

Explanation of Rule, its Purpose, and Anticipated Effects: The rule establishes the budget approval requirement and guidelines governing promotional hosting as required by RCW 15.04.200. The rule authorizes the Asparagus Commission to approve and expend funds [to promote] agricultural development and trade promotional hosting. Trade development and promotion maintains and expands markets for Washington grown asparagus.

Proposal does not change existing rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The rule will not increase grower assessments or 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: WSU Cooperative Extension, 317 West Rose Street, 2nd Floor, Walla Walla, WA 98362, on July 21, 1998, at 10:15.

Assistance for Persons with Disabilities: Contact Cathy Jensen by July 17, 1998, TDD (360) 902-1996, or (360) 902-1976.

Submit Written Comments to: Jeanne Pickel, Chair, Washington Asparagus Commission, 2705 St. Andrews Loop, Pasco, WA 99301, FAX (509) 544-9056, by July 21, 1998.

Date of Intended Adoption: August 5, 1998.

May 27, 1998

Jeanne A. Pickel

Chairperson

AMENDATORY SECTION (Amending WSR 91-09-003, filed 4/4/91, effective 5/5/91)

WAC 16-557-010  Definition of terms. 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 Agricultural Enabling Act of 1961 or chapter 15.65 RCW.

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

(5) "Affected producer" means any person who produces in the state of Washington asparagus in commercial quantities for fresh market, for processing, or for sale to processors.

(6) "Commercial quantity" means any asparagus produced for market in quantities of three tons (6,000 pounds) or more, in any calendar year.

(7) "Affected handler" means both affected handler fresh and affected handler processor.

(8) "Affected handler, fresh" means any person who acts as principal or agent or otherwise in selling, marketing, or distributing fresh asparagus not produced by him.

(9) "Affected handler, processor" means any person who acts as principal or agent or otherwise in processing, freezing asparagus, and selling, marketing, or distributing said processed or frozen asparagus, not produced by him.

(10) "Asparagus commodity board," hereinafter referred to as "board," means the commodity board formed under the provisions of WAC 16-557-020.

(11) "Asparagus" means and includes all kinds, varieties, and hybrids of "officinalis" Linn.

(12) "Marketing season" or "fiscal year" means the twelve-month period beginning with January 1 of any year and ending with the last day of December following, both dates being inclusive.

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

(14) "Affected area" means the following counties in the state of Washington: Adams, Benton, Columbia, Franklin, Grant, Kittitas, Klickitat, Walla Walla, and Yakima.

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

(16) "Affected unit" means one pound net pay weight of asparagus.

(17) "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 asparagus.

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

[Statutory Authority: RCW 15.65.050 and chapter 15.65 RCW. 91-09-003, § 16-557-010, filed 4/4/91, effective 5/5/91.]

NEW SECTION

WAC 16-557-025  Rules for implementation of promotional hosting by the Washington asparagus commission. The laws of section 1, chapter 26, Laws of 1985 (RCW 15.04.200) provide that agricultural commodity commissions shall adopt rules governing promotional hosting expenditures by agricultural commodity commission employees, agents, or commissioners. The rules governing promotional hosting expenditures for the Washington asparagus commission shall be as follows:

(1) Budget approval. Commission expenditures for agricultural development or trade promotion and promotional hosting shall be pursuant to specific budget items as approved by the commission at annual public hearings on the commission budget.

(2) Officials and agents authorized to make expenditures. The following officials and agents are authorized to make expenditures for agricultural development or trade promotion and promotional hosting in accordance with the provisions of these rules.

(a) Commissioners;

(b) Administrator;

(c) Communications coordinator.

Individual commissioners shall make promotional hosting expenditures, or seek reimbursements for those expenditures, only in those instances where the expenditures have been approved by the commission.

(3) Payment and reimbursement. All payments and reimbursements shall be identified and supported by vouchers to which receipts are attached. Voucher forms will be supplied by the commission, and shall require the following information:

(a) Name and position (if appropriate) of each person hosted;

(b) General purpose of the hosting;

(c) Date of hosting;

(d) Location of the hosting;

(e) To whom payment was or will be made:

(f) Signature of person seeking payment or reimbursement.

(4) The chair of the commission, administrator, and/or treasurer are authorized to approve direct payment or reimbursements submitted in accordance with these rules.

(5) The following persons may be hosted when it is reasonably believed such hosting will cultivate trade relations and promote sales of Washington grown asparagus:

(a) An individual from private business, associations, commissions;

(b) Foreign government officials;

(c) Federal and state officials: Provided, That lodging, meals, and transportation will not be provided when such officials may obtain full reimbursement for these expenses from their government employer;

(d) The general public, at meetings and gatherings open to the general public;

(e) Commissioners and employees of the commission when their attendance at meetings, meals, and gatherings at which the persons described in (a) through (d) of this subsection are being hosted, will cultivate trade relations and promote sales of Washington grown asparagus;

(f) Spouses of the persons listed in (a), (b), (c), and (e) of this subsection when attendance of such spouse is customary and expected.

[]