Title of Rule: WAC 16-565-020 (10)(h), Cranberry Commodity Board, powers and duties of the board.

Purpose: To revise the auditing schedule of the Cranberry Commission's records, books and accounts from an annual audit to an audit of at least once very five years as provided for under RCW 15.65.490.

Statutory Authority for Adoption: RCW 15.65.050.

Statute Being Implemented: Chapter 15.65 RCW.

Summary: The rule revision will eliminate the annual audit requirement of the commission and provide consistency between RCW 15.65.490 and the cranberry marketing order.

Reasons Supporting Proposal: An annual audit of the commission's records, books and accounts is not necessary and would allow the commission and the state auditor's office to establish a more efficient schedule in auditing the commission. A more flexible schedule would reduce costs to the commissions.

Name of Agency Personnel Responsible for Drafting: Walter Swenson, 1111 Washington Street, Natural Resources Building, 2nd Floor, Olympia, WA, (360) 902-1928; Implementation and Enforcement: Washington Cranberry Commission, P.O. Box 597, Grayland, WA 985471 [98547], c/o (360) 902-1928.

Name of Proponent: Washington Cranberry Commission, private.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The Washington State Department of Agriculture supports the flexible audit schedule for the commission to reduce unnecessary cost to the commission.

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

Explanation of Rule, its Purpose, and Anticipated Effects: The rule change will eliminate the annual audit requirement of the Cranberry Commission and bring the rule establishing the commission consistent with other commissions formed under chapter 15.65 RCW, Agricultural Enabling Act of 1961. The rule change will reduce the cost to the Washington Cranberry Commission.

Proposal Changes the Following Existing Rules: The proposed change will eliminate the annual audit requirement of the commission and allow the commission to establish an audit schedule of at least once every five years subject to methods and procedures of the state auditors's office.

February 16, 2000

William E. Brookreson

Deputy Director

(1) Administration.      The provisions of this order and the applicable provisions of the act shall be administered and enforced by the board as the designee of the director.

(2) Board membership.

(a) The board shall consist of eight members.      Seven members shall be affected producers elected as provided in this section.      The director shall appoint one member who is neither an affected producer nor a handler to represent the department and the public.

(b) For the purpose of nomination and election of producer members of the board, the affected area shall be the state of Washington and shall be divided into three representative districts as follows:

District I shall have two board members, being Positions 1 and 2, and shall comprise that portion of Pacific County lying south of the Willapa River.

District II shall have four board members, being Positions 3, 4, 5, and 6, and shall comprise that portion of Pacific County and that portion of Grays Harbor County lying between the Willapa River and the Chehalis River.

District III shall have one board member, being Position 7, and shall comprise the rest of the state.

(3) Board membership qualifications.      The affected producer members of the board shall be practical producers of cranberries and shall be citizens and residents of the state of Washington, over the age of twenty-five years, each of whom is and has been actually engaged in producing cranberries within the state of Washington for a period of five years and has, during that time, derived a substantial portion of his income therefrom.      Producer-handlers shall be considered to be acting only as producers for purpose of election and membership on a commodity board.      The qualifications of members of the board as herein set forth must continue during the terms of office.

(4) Term of office.

(a) The term of office for members of the board shall be three years, and one-third of the membership as nearly as possible shall be elected each year.

(b) Membership positions on the board shall be designated numerically; affected producers shall have positions one through seven and the member appointed by the director, position eight.

(c) The term of office for the initial board members shall be as follows:

Positions one and three - one year;

Positions four and five - two years;

Positions two, six, seven, and eight - three years.

(d) No elected member of the board may serve more than two full consecutive three-year terms.

(5) Nomination and election of board members. Each year the director shall call for a nomination meeting.      Such meeting shall be held at least thirty days in advance of the date set by the director for the election of board members.      Notice of every such meeting shall be published in a newspaper of general circulation within the production area not less than ten days in advance of the date of such meeting; and, in addition, written notice of every such meeting shall be given to all affected producers according to the list maintained by the director pursuant to RCW 15.65.200 of the act.      Nonreceipt of notice by any interested person shall not invalidate the proceedings at such nomination meeting.      Any qualified affected producer may be nominated orally for membership on the board at such nomination meeting.      Nominations may also be made within five days after any such meeting by written petition filed with the director, signed by not less than five affected producers.      At the inception of this marketing order, nominations may be made at the issuance hearing.

(6) Election of board members.

(a) Members of the board shall be elected by secret mail ballot within the month of June under the supervision of the director.      Affected producer members of the board shall be elected by a majority of the votes cast by the affected producers.      Each affected producer shall be entitled to one vote.

(b) If a nominee does not receive a majority of the votes on the first ballot, a run-off election shall be held by mail in a similar manner between the two candidates for such position receiving the largest number of votes.

(c) Notice of every election for board membership shall be published in a newspaper of general circulation within the production area not less than ten days in advance of the date of such election.      Not less than ten days prior to every election for board membership, the director shall mail a ballot of the candidates to each affected producer entitled to vote whose name appears on the list of such affected producers maintained by the director in accordance with RCW 15.65.200.      Any other affected producer entitled to vote may obtain a ballot by application to the director upon establishing his qualifications.      Nonreceipt of a ballot by any affected producer shall not invalidate the election of any board members.

(7) Vacancies prior to election. In the event of a vacancy on the board, the remaining members shall select a qualified person to fill the unexpired term.

(8) Quorum. A majority of the members shall constitute a quorum for the transaction of all business and the carrying out of all duties of the board.

(9) Board compensation.      No member of the board shall receive any salary or other compensation, but each member may receive per diem in accordance with RCW 15.65.270 for each day in actual attendance at or traveling to and from meetings of the board or on special assignment for the board, together with travel expenses at the rates allowed state employees.

(10) Powers and duties of the board.      The board shall have the following powers and duties:

(a) To administer, enforce, and control the provisions of this order as the designee of the director.

(b) To elect a chairman and such other officers as the board deems advisable.

(c) To employ and discharge at its discretion such personnel as the board determines necessary and proper to carry out the purpose of the order and effectuate the declared policies of the act.

(d) To pay from moneys collected as assessments or advances thereon the costs arising in connection with the formulation, issuance, administration, and enforcement of the order.      Such expenses and costs may be paid by check, draft, or voucher in such form and in such manner and upon the signature of the person as the board may prescribe.

(e) To accept grants and gifts and expend the same consistent with the policies and purpose of this order.

(f) To reimburse any applicant who has deposited with the director in order to defray the costs of formulating the order.

(g) To establish a "cranberry board marketing revolving fund" and such fund to be deposited in a bank or banks or financial institution or institutions, approved for the deposit of state funds, in which all money received by the board, except as the amount of petty cash for each day's needs, not-to-exceed one hundred dollars, shall be deposited each day or as advisable.

(h) To keep or cause to be kept in accordance with accepted standards of good accounting practice, accurate records of all assessments, paid outs, moneys, and other financial transactions made and done pursuant to this order.      Such records, books, and accounts shall be audited at least ((annually)) every five years subject to procedures and methods lawfully prescribed by the state auditor.      Such books and accounts shall be closed as of the last day of each fiscal year.      A copy of such audit shall be delivered within thirty days after the completion thereof to the governor, the director, the state auditor, and the board.

(i) To require a bond of all board members and employees of the board in a position of trust in the amount the board shall deem necessary.      The premium for such bond or bonds shall be paid by the board from assessments collected.      Such bond shall not be necessary if any such board member or employee is covered by any blanket bond covering officials or employees of the state of Washington.

(j) To prepare a budget or budgets covering anticipated income and expenses to be incurred in carrying out the provisions of the order during each fiscal year.

(k) To establish by resolution, a headquarters which shall continue as such unless and until so changed by the board.      All records, books, and minutes of board meetings shall be kept at such headquarters.

(l) To adopt rules and regulations of a technical or administrative nature, subject to the provisions of chapter 34.04 RCW (Administrative Procedure Act).

(m) To carry out the provisions of RCW 15.65.510 covering the obtaining of information necessary to effectuate the provisions of the order and the act, along with the necessary authority and procedure for obtaining such information.

(n) To bring actions or proceedings upon joining the director as a party for specific performance, restraint, injunction, or mandatory injunction against any person who violates or refuses to perform the obligations or duties imposed upon him/her by the act or the order.

(o) To confer with and cooperate with the legally constituted authorities of other states and of the United States for the purpose of obtaining uniformity in the administration of federal and state marketing regulations, licenses, agreements, or orders.

(p) To carry out any other grant of authority or duty provided designees and not specifically set forth in this section.

(11) Procedures for board.

(a) The board shall hold regular meetings, at least semiannually, and such meetings shall be held in accordance with chapter 42.30 RCW (Open Public Meetings Act).

(b) The board shall hold an annual meeting, at which time an annual report will be presented.      The proposed budget shall be presented for discussion at the meeting.      Notice of the annual meeting shall be given by the board at least ten days prior to the meeting by written notice to each producer and by notifying the regular news media.

(c) The board shall establish by resolution, the time, place, and manner of calling special meetings of the board with reasonable notice to the members: Provided, That the notice of any special meeting may be waived by a waiver thereof by each member of the board.

[Statutory Authority: RCW 15.65.380.      85-15-018 (Order 1864), § 16-565-020, filed 7/8/85.      Statutory Authority: Chapter 15.65 RCW.      80-13-037 (Order 1713), § 16-565-020, filed 9/12/80, effective 10/13/80.]

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