Preproposal statement of inquiry was filed as WSR 98-06-083.

Title of Rule: Chapter 24-12 WAC, Assessments.

Purpose: Increase the assessment on fresh apples grown in the state from 54.3 cents per one hundred pounds (25 cents per standard 46 pound box) to 86.96 per one hundred pounds (40 cents per standard 46 pound box) for a period of three years. At the end of three years, the rate will be submitted to a vote of the growers to determine if the rate will remain in effect after that date, or return to 54.3 cents per one hundred pounds.

Statutory Authority for Adoption: Chapter 15.24 RCW, chapter 303, Laws of 1997.

Statute Being Implemented: Chapter 15.24 RCW.

Summary: The rule change, if approved by a majority of the affected producers voting in a referendum, will increase the assessment on fresh apples from 54.3 cents per one hundred pounds to 86.96 cents per one hundred pounds for a period of three years. At the end of three years, the rate will be submitted to a vote of the growers to determine if the rate will remain in effect after that date.

Reasons Supporting Proposal: The assessment increase is necessary to maintain markets and expand sales of fresh apples grown in Washington.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Steve Lutz, 2900 Euclid Avenue, Wenatchee, WA, (509) 663-9600.

Name of Proponent: Washington Apple Advertising Commission, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: Adoption of the rule is subject to approval by a majority of the affected producers voting in a referendum conducted by the Department of Agriculture.

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

Explanation of Rule, its Purpose, and Anticipated Effects: The Apple Advertising Commission has approved a resolution to submit a proposal to a vote of the apple growers to increase the assessment on fresh apples from 54.3 cents per one hundred pounds to 86.96 cents per one hundred pounds for a period of three years. The additional funds generated by the assessment increase will be used exclusively for direct consumer advertising. At the end of three years, the assessment rate will be submitted to a vote of the growers to determine if the rate will remain in effect after that date.

Proposal Changes the Following Existing Rules: The proposed amendment will increase the assessments on fresh apples from 54.3 cents per one hundred pounds to 86.96 cents per one hundred pounds for a period of three years and establish a procedure to determine if the rate will remain in effect after that date.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The rule will only affect fresh apple growers in Washington state and will only become effective with the approval of a majority of fresh apple growers voting in a referendum. There will be no disproportionate cost to small businesses because producers of apples in Washington state area considered small businesses (less than fifty full-time, year-round employees). All cost as well as economic benefit to the producer will be in proportion to the level of production of each producer.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. Washington Apple Advertising Commission is not a listed agency in section 201.

Hearing Location: Washington Apple Commission, General Meeting Room, 2900 Euclid Avenue, Wenatchee, WA, on July 21, 1998, at 9 a.m.

Assistance for Persons with Disabilities: Contact Cathy Jensen by July 17, 1998, TDD (360) 902-1997, or (360) 902-1976.

Submit Written Comments to: Steve Lutz, President, Washington Apple Commission, P.O. Box 18, Wenatchee, WA 98807, FAX (509) 663-5824, by July 21, 1998.

Date of Intended Adoption: August 31, 1998.

June 17, 1998

Steve Lutz

President

WAC 24-12-010  Amount of assessments. (1) There is hereby levied upon all fresh apples grown annually in this state, and upon all apples packed as Washington apples, an assessment of ((32.6)) 89.96 cents on each one hundred pounds gross billing weight until September ((1, 1986)) 30, 2001. On and after ((September 1, 1986)) October 1, 2001 the assessment on fresh apples ((is hereby increased)) shall be 54.3 cents on each one hundred pounds gross billing weight ((in the following amounts:

(a) By 10.9 cents from 32.6 cents to 43.5 cents effective September 1, 1986;

(b) By 6.5 cents from 43.5 cents to 50.0 cents effective September 1, 1988;

(c) By 4.3 cents from 50.0 cents to 54.3 cents effective September 1, 1990)).

For the period October 1, 1998 through September 30, 2001, 35.66 cents of the assessment on each one hundred pounds gross billing weight shall used only for direct consumer advertising.

(2) Assessments shall be payable as provided in WAC 24-12-012, whether in bulk or loose in boxes or any other container, or packed in any style package. The gross billing weights for the following containers shall apply for the purpose of computing said assessments:

[Statutory Authority: RCW 15.24.070(1). 86-21-088 (Order 19), § 24-12-010, filed 10/17/86; 84-20-002 (Order 16), § 24-12-010, filed 9/20/84; 82-20-073 (Order 13), § 24-12-010, filed 10/6/82. Statutory Authority: RCW 15.24.070(1) and 15.24.090. 81-16-011 (Order 9), § 24-12-010, filed 7/27/81. Statutory Authority: RCW 15.24.070(1). 79-04-045 (Order 8), § 24-12-011 (codified as WAC 24-12-010), filed 3/27/79, effective with the 1979 and subsequent crops of apples; 78-07-030 (Order 7), § 24-12-010, filed 6/16/78, effective 9/1/78; Order 6, § 24-12-010, filed 11/14/77; Order 1, § 24-12-010, filed 9/19/69; Regulation No. 2, filed 1/26/67; Regulation No. 2, effective 9/29/61.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.