PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 01-02-101.
Title of Rule: Nursery inspection fees, chapter 16-401 WAC.
Purpose: To amend current fee schedule sections to increase fees-for-services within the fiscal growth factors for fiscal year 2001 and fiscal year 2002.
Statutory Authority for Adoption: Chapters 15.13, 15.14 RCW.
Statute Being Implemented: Chapters 15.13, 15.14 RCW.
Summary: The proposed revisions will increase nursery fees for services and miscellaneous charges related to requested services. The increases will occur in two stages, with an increase of a maximum of 2.87% becoming effective June 30, 2001, and a second increase for a maximum of 2.79% becoming effective July 1, 2001.
Reasons Supporting Proposal: Current fee levels are not anticipated to cover costs to render these services by the plant services program. The department is mandated in statute to support the program through industry fees.
Name of Agency Personnel Responsible for Drafting: Mary Toohey, 1111 Washington Street, 2nd Floor, Olympia, WA 98504-2560, (360) 902-1907; Implementation and Enforcement: Thomas Wessels, 1111 Washington Street, 2nd Floor, Olympia, WA 98504-2560, (360) 902-1984.
Name of Proponent: Washington State Department of Agriculture, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This rule establishes the fees charged by the plant services program for activities authorized in chapters 15.13 and 15.14 RCW and sets forth related billing and licensing information. The current inspection fee income is not anticipated to be adequate to cover program costs for these activities. This has made it necessary to raise fees for inspections and other requested (that is, optional) services within the fiscal growth factors for both fiscal year 2001 and 2002. The proposal does not include increases in nursery license fees. We anticipate that the amendments will enable the program to remain financially solvent (as required by statute).
Proposal Changes the Following Existing Rules: Chapter 16-401 WAC establishes the fee schedule for nursery inspection fees and miscellaneous charges related to requested services. The proposed changes increase these fees by a maximum of the fiscal growth factor for fiscal year 2001, to become effective June 30, 2001, and another increase in fees by a maximum of the fiscal growth factor for fiscal year 2002, to become effective July 1, 2001. Nursery license fees are also established by chapter 16-401 WAC, however, no changes in license fees are proposed.
No small business economic impact statement has been prepared under chapter 19.85 RCW.
| License/fee | Current rate | 6/30/99 rate | 7/1/99 rate |
| Hourly rate during business hours | $26.90 | $27.65 | $28.40 |
| Hourly rate during nonbusiness hours | $34.40 | $35.35 | $36.30 |
| Phytosanitary certificate issued more than 24 hrs. after the time of inspection | $12.90 | $13.25 | $13.60 |
| Additional phytosanitary certificates issued more than 24 hrs. after the time of inspection | $4.20 | $4.30 | $4.40 |
| Sanitation inspection or witnessing a treatment of nonplant material - hourly | $26.90 | $27.65 | $28.40 |
| Certificate of sanitation for nonplant material (one certificate issued at time of inspection) | No charge | No charge | No charge |
| Additional certificates of sanitation for nonplant material (no charge for first certificate) | $4.20 | $4.30 | $4.40 |
| Brown garden snail inspections - hourly | $26.90 | $27.65 | $28.40 |
| Brown garden snail certificate | No charge | No charge | No charge |
| Additional brown garden snail certificates | $4.20 | $4.30 | $4.40 |
| Certificate of plant health (noncommercial) | $5.35 | $5.50 | $5.65 |
| Witnessing or certifying fumigation per hour | $26.90 | $27.65 | $28.40 |
| Fumigation charge per lot or container | $10.75 | $11.05 | $11.35 |
| Postage, special handling services or other miscellaneous costs exceeding five dollars | Actual cost | Actual cost | Actual cost |
| Nursery stickers and inspection tags in lots of 250 | $5.35 | $5.50 | $5.65 |
| Nursery stickers and inspection tags - less than 250 (minimum 10) | $.26 | $.267 | $.27 |
| Authorization to preprint WA nursery stock inspection certificates on shipping containers | $26.90 | $27.65 | $28.40 |
Affected Groups and Costs: The proposed fee increase will
affect approximately six hundred thirty-eight customers who use
nursery inspection services. Customers utilizing these services
include wholesale nurseries requiring a growing season
inspection, hay and lumber exporters, and growers of certified
planting stock. The average cost to a customer in 2000 was $198,
which will increase by $11 if the proposal is adopted.
This proposed increase would mostly affect large wholesale nurseries and nonnursery business such as Christmas tree growers and exporters of other agricultural products. It would have a significant economic impact on forty-one businesses that required extensive field inspections or multiple phytosanitary certifications in past years. A major forest products company was the largest user of these services in 2000 and will pay approximately $1415 annually if the fees in chapter 16-401 WAC are increased as proposed.
| SIC code | Type of business | No affected | Total no. | % affected |
| 0139 | Hay | 8 | 163 | 5% |
| 5153 | Export | 5 | 113 | 4% |
| 0181 | Nurseries | 16 | 399 | 4% |
| 0831 | Forest products | 9 | 233 | 4% |
| 0811 | Christmas trees | 1 | 288 | 0.3% |
Except for situations where licensed nurseries are found to be out of compliance with chapter 15.13 RCW or its rules, the services affected by the proposed fee increases are discretionary - that is, certain market opportunities require one or more of these services, but the decision to enter that segment of the market is optional for the producer.
Current Economic Situation: Nursery inspection activities are supported entirely by nursery license fees and fees for services. Most of the funding comes from nursery license fees, which increased a total of approximately 7.6% in fiscal years 1999 and 2000. Approximately 30% of the funding comes from requested services. This proposal solely addresses fees for requested services.
The plant services program regulates the sale and movement of horticulture plants within the state of Washington. This program is also responsible for certifying plants and plant products for export and enforcing nursery related quarantines. The current fee schedule has been in place since July 1, 1999. Despite the fee increases within the fiscal growth factors for FY 99 and FY 00, the fund balance continued to decline until February 2000 when the plant services program began certifying hay exports to Japan, a service formerly provided by USDA-PPQ. Phytosanitary certificates issued for hay exports now account for approximately half of the phytosanitary certificates issued by the plant services program and have added approximately $10,000 of revenue to the program per month. Increased fund balances commencing in March 2000 are largely due to the revenue generated by certification of hay exports (Figure 1). Further significant revenue increases from this source are not anticipated.
Expenses associated with nursery inspection activities are continuing to increase and will offset the increases in revenue from the export programs. Large increases in employee benefits are anticipated, further eroding any gains made during the last two years. The proposed fee increases, along with continued increases in efficiency, will keep the program economically viable for the next two years.
| Place illustration here. |
Industry Outreach: The agency discussed the proposed fee
increases with the statutorily established industry advisory
committee (the Nursery Advisory Committee) on June 9, 2000, and
received endorsement for the proposal at a subsequent meeting on
March 9, 2001. A news release explaining the proposal will be
published in the nursery trade journal, B & B, in the spring of
2001. The proposal was also discussed at the Fruit Tree Advisory
Committee meeting on March 7, 2001. The department will send out
a letter informing all customers of the proposed increase and
soliciting comments.
Alternatives to a Fee Increase: A viable nursery inspection program is necessary for an orderly trade of horticulture plants. Without increased fees, the current level of service could be maintained for a limited time until the fund reserve became depleted. At that time nursery inspection activities would have to be terminated.
Another alternative to an increase in fees for requested services would be termination of export certification services to nonlicensed nurseries. This would allow the plant services program to reduce the number of staff to a level supported by nursery license fees. USDA-PPQ, the relevant federal agency, could possibly provide export services to nonnursery exporters, but only at a considerably higher cost to the customer.
Conclusion: This proposed revision would increase fees for services authorized in chapter 16-401 WAC by approximately 2.87% for fiscal year 2001 and approximately 2.79% for fiscal year 2002 for a total increase of approximately 5.6%. The increases would be implemented in two steps with the first increase effective June 30, 2001, and a second increase effective July 1, 2001. The increases are needed to keep the plant services program financially sound in the coming years. The hourly fee for inspections would be raised $1.50 from the current rate of $26.90 for services provided during business hours and $1.90 to the current $34.40 for services provided outside of normal business hours. This increase would have an economical impact of $50 or more on approximately forty-one customers out of a total of six hundred thirty-eight.
The Regulatory Fairness Act, chapter 19.85 RCW, requires a small business economic impact analysis on proposed rules that impose more than minor costs on 10% of the businesses in any one industry within a four digit SIC classification. Industries affected by chapter 16-401 WAC are in SIC classifications 0139, 0831, 0811 and 5153. The proposed increase will affect less than 10% of the businesses in these industries; therefore, a small business economic impact statement is not required.
Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption.
Hearing Location: Washington State Department of Agriculture, Natural Resources Building, 1111 Washington Street, 2nd Floor, Conference Room 271, Olympia, WA 98504-2560, on April 26, 2001, at 1:00 p.m.
Assistance for Persons with Disabilities: Contact Lou Jones by April 18, 2001, TDD (360) 902-1996, or (360) 902-1806.
Submit Written Comments to: Mary Toohey, Assistant Director, Laboratory Services Division, Washington State Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, e-mail mtoohey@agr.wa.gov, fax (360) 902-2094, by April 27, 2001.
Date of Intended Adoption: May 8, 2001.
March 21, 2001
Mary A. Martin Toohey
Assistant Director
OTS-4737.1
AMENDATORY SECTION(Amending WSR 99-12-034, filed 5/26/99,
effective 6/26/99)
WAC 16-401-021
Schedule of fees and charges -- Facility
inspection -- Effective July 1, 1999.
(1) Any plant material at a
location licensed as a nursery dealer under chapter 15.13 RCW is
subject to regulatory inspections. A nursery inspection report
will be issued, without additional charge except as provided in
subsection (2) of this section, stating the results of the
inspection.
(2) A fee may be charged for repeated, subsequent
inspections of license locations where plant material does not
meet the requirements set forth in chapter 15.13 RCW: Provided,
That the license location is subject to no more than two paid
inspections each license period. Fees are assessed on the basis
of the time required for the inspection at the applicable hourly
rate provided in chapter 16-401 WAC ((16-401-026)).
[Statutory Authority: Chapters 15.13 and 15.14 RCW. 99-12-034, 16-401-021, filed 5/26/99, effective 6/26/99.]
(1) Hourly rate
(a) Business hours . . . . . . . . . . . . $ ((26.90)) 27.65
(b) Nonbusiness hours (see WAC 16-401-023)
. . . . . . . . . . . . $ ((34.40)) 35.35
(2) Mileage at the established office of financial management rate (schedule A), per diem at actual cost, and travel time at the applicable hourly rate may be assessed for requested inspections that are not a part of a regular work schedule. Such charge may be prorated among applicants if more than one applicant is provided service during a work day or trip when mileage and/or per diem are applicable.
(3) Inspections for phytosanitary certification, including growing season field inspections, are provided at the applicable hourly rate provided in subsection (1) of this section except where an alternate certification inspection fee is provided in statute, in rule, or by a written agreement between the department and an industry entity, university, or public agency. When growing season field inspections for phytosanitary certification and regulatory inspections are performed simultaneously, the first two hours of inspection each calendar year for nurseries licensed under WAC 16-401-041 (1)(b) or (2)(a); and the first four hours of inspection per calendar year for nurseries licensed under WAC 16-401-041 (1)(c) or (2)(b), are without charge.
(a) There is no additional charge for the first phytosanitary certificate issued at the time of the inspection.
(b) Phytosanitary certificates issued more than twenty-four hours from the time of the inspection, first certificate
. . . . . . . . . . . . $ ((12.90)) 13.25
(c) Additional phytosanitary certificates
. . . . . . . . . . . . $ ((4.20)) 4.30 ea.
(4) Inspection and certification of nonplant material or equipment for sanitation (freedom from soil or pests) by visual examination or through witnessing a prescribed treatment (steam cleaning, hydro-washing, etc.) is charged at the applicable hourly rate.
(a) There is no additional charge for the first certificate.
(b) Additional certificates . . . . . . . . . . . . $ ((4.20)) 4.30 ea.
(5) Inspections for garden brown snail certification or other miscellaneous inspection certification are charged at the applicable hourly rate.
(a) For the first certificate . . . . . . . . . . . . no charge
(b) For additional certificates . . . . . . . . . . . . $ ((4.20)) 4.30 ea.
(6) Witnessing and certification of fumigation is charged at the applicable hourly rate, plus a per lot or container fee of
. . . . . . . . . . . . $ ((10.75)) 11.05
(7) For a certificate of plant health for noncommercial movement of plant materials between states by unlicensed persons, up to a maximum of five plants, and provided that the plants are brought to a plant services office for
inspection . . . . . . . . . . . . $ ((5.35)) 5.50
| Note: | When two or more types of inspection, provided in this section, are performed simultaneously, only one hourly rate(( |
[Statutory Authority: Chapters 15.13 and 15.14 RCW. 99-12-034, 16-401-026, filed 5/26/99, effective 6/26/99.]
(1) Hourly rate.
(a) Business hours . . . . . . . . . . . . $28.40
(b) Nonbusiness hours (see WAC 16-401-023) . . . . . . . . . . . . $36.30
(2) Mileage at the established office of financial management rate (schedule A), per diem at actual cost, and travel time at the applicable hourly rate may be assessed for requested inspections that are not a part of a regular work schedule. Such charge may be prorated among applicants if more than one applicant is provided service during a work day or trip when mileage and/or per diem are applicable.
(3) Inspections for phytosanitary certification, including growing season field inspections, are provided at the applicable hourly rate provided in subsection (1) of this section except where an alternate certification inspection fee is provided in statute, in rule, or by a written agreement between the department and an industry entity, university, or public agency. When growing season field inspections for phytosanitary certification and regulatory inspections are performed simultaneously, the first two hours of inspection each calendar year for nurseries licensed under WAC 16-401-041 (1)(b) or (2)(a); and the first four hours of inspection per calendar year for nurseries licensed under WAC 16-401-041 (1)(c) or (2)(b), are without charge.
(a) There is no additional charge for the first phytosanitary certificate issued at the time of the inspection.
(b) Phytosanitary certificates issued more than twenty-four hours from the time of the inspection, first certificate
. . . . . . . . . . . . $13.60
(c) Additional phytosanitary certificates . . . . . . . . . . . . $4.40 ea.
(4) Inspection and certification of nonplant material or equipment for sanitation (freedom from soil or pests) by visual examination or through witnessing a prescribed treatment (steam cleaning, hydro-washing, etc.) is charged at the applicable hourly rate.
(a) There is no additional charge for the first certificate.
(b) Additional certificates . . . . . . . . . . . . $4.40
(5) Inspections for garden brown snail certification or other miscellaneous inspection certification are charged at the applicable hourly rate.
(a) For the first certificate . . . . . . . . . . . . no charge
(b) For additional certificates . . . . . . . . . . . . $4.40
(6) Witnessing and certification of fumigation is charged at the applicable hourly rate, plus a per lot or container fee of
. . . . . . . . . . . . $11.35
(7) For a certificate of plant health for noncommercial movement of plant materials between states by unlicensed persons, up to a maximum of five plants, and provided that the plants are brought to a plant services office for inspection . . . . . . . . . . . . $5.65
| Note: | When two or more types of inspection, provided in this section, are performed simultaneously, only one hourly rate applies. One certificate for one service is issued at no charge. Additional certificates are issued at the $4.40 rate. |
[]
(1) Postage, special handling services and other miscellaneous costs exceeding five dollars are charged at the actual cost.
(2) Other requested office services, not specifically
provided for, are charged a fee based on the portion of an hour
at the applicable hourly rate in chapter 16-401 WAC
((16-401-026)).
(3) Nursery stickers and nursery stock inspection certificate tags:
(a) In lots of 250 . . . . . . . . . . . . $ ((5.35)) 5.50 per lot
(b) Less than 250 (minimum 10) . . . . . . . . . . . . $ ((0.26)) 0.267 each
(4) Authorization by the department to preprint Washington
nursery stock inspection certificates on shipping containers,
yearly authorization fee or renewal . . . . . . . . . . . . $ ((26.90)) 27.65
[Statutory Authority: Chapters 15.13 and 15.14 RCW. 99-12-034, 16-401-031, filed 5/26/99, effective 6/26/99.]
(1) Postage, special handling services and other miscellaneous costs exceeding five dollars are charges at the actual cost.
(2) Other requested office services, not specifically provided for, are charged a fee based on the portion of an hour at the applicable hourly rate in chapter 16-401 WAC.
(3) Nursery stickers and nursery stock inspection certificate tags:
(a) In lots of 250 . . . . . . . . . . . . $5.65 per lot
(b) Less than 250 (minimum 10) . . . . . . . . . . . . $0.27
(4) Authorization by the department to preprint Washington nursery stock inspection certificates on shipping containers, yearly authorization fee or renewal . . . . . . . . . . . . $28.40
[]
(1) Retail nursery dealer license fee:
(a) Gross business sales of horticultural plants and turf less than two thousand five hundred dollars . . . . . . . . . . . . $ 37.67
(b) Gross business sales of horticultural plants and turf between two thousand five hundred dollars and fifteen thousand dollars, the license fee is . . . . . . . . . . . . $ 80.72
(c) Gross business sales of horticultural plants and turf of fifteen thousand dollars or more . . . . . . . . . . . . $ 161.45
(2) Wholesale nursery dealer license fee:
(a) Gross business sales of horticultural plants and turf less than fifteen thousand dollars . . . . . . . . . . . . $ 80.72
(b) Gross business sales of horticultural plants and turf of fifteen thousand dollars or more . . . . . . . . . . . . $ 161.45
(3) As provided in RCW 15.13.285, a surcharge of twenty percent of the base rate, in addition to the fees established on all classes of licenses in subsections (1) and (2) of this section, is established.
(4) Permit fee for those types of sales and organizations
exempted from licensing requirements by RCW 15.13.270((, per
permit)).
(a) Effective June 30, 2001 per permit . . . . . . . . . . . . $ ((5.35)) 5.50
(b) Effective July 1, 2001, per permit . . . . . . . . . . . . $ 5.65
[Statutory Authority: Chapters 15.13 and 15.14 RCW. 99-12-034, 16-401-041, filed 5/26/99, effective 6/26/99.]