WSR 02-16-045

PERMANENT RULES

DEPARTMENT OF AGRICULTURE


[ Filed August 1, 2002, 8:21 a.m. ]

Date of Adoption: August 1, 2002.

Purpose: The Washington State Department of Agriculture procedural rules for funding 1/2 FTE by all commodity commissions.

Statutory Authority for Adoption: Chapters 15.65, 15.66, 15.24, 16.67, 15.44, 15.28, 15.26, 15.88, and 43.23 RCW.

Adopted under notice filed as WSR 02-13-132 on June 19, 2002.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 3, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 3, Amended 0, Repealed 0.
Effective Date of Rule: Thirty-one days after filing.

August 1, 2002

Valoria H. Loveland

Director

CHAPTER 16-501 WAC

WSDA PROCEDURAL RULES -- COMMODITY BOARDS OR COMMISSIONS
NEW SECTION
WAC 16-501-005   Definitions.   Unless the context clearly requires otherwise, the definitions in this section apply throughout the chapter:

"Assessment level" means the total annual assessment collected by an agricultural commodity board or commission under the provisions of its marketing order or authorizing statute.

"Department" means the Washington State Department of Agriculture (WSDA).

"Total financial contribution" means the contributions from all agricultural commodity boards and commissions to cover one-half the annual salary and benefits of the department's commodity commission coordinator for commodity boards and commissions plus the annual costs for goods and services, travel, training and equipment necessary to support the commodity commission coordinator.

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NEW SECTION
WAC 16-501-010   Commodity commission financial contribution.   (1) Under the provisions of RCW 43.23, the director may establish, by rule, a method to fund staff support for all commodity boards and commissions.

(2) Before July 1 of each fiscal year, the department will determine the total financial contribution required from all commodity boards or commissions and calculate, according to the provisions of WAC 16-501-015, each board or commission's share of that total contribution. The board or commission's contribution shall be based on the previous fiscal year's assessment level.

(3) On or around July 1 of each fiscal year, the department will bill each commodity board or commission for its portion of the total financial contribution. The board or commission shall remit to the department the amount billed within thirty days of the billing date.

(4) The department will provide each commodity board or commission with an annual report regarding the department's activities on behalf of the boards or commissions.

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NEW SECTION
WAC 16-501-015   Calculation of a commodity board or commission's contribution.   The total financial contribution for each commodity board or commission shall be calculated using the following steps:

(1) Step 1 - Using a board or commission's assessment level, the base assessment portion of a commodity board or commission's share of the total financial contribution is established-as follows:


Contribution Categories

Assessment Level Base Assessment
> $100,000 $ 250.00
100,001 - 250,000 500.00
250,001 - 500,000 750.00
500,001 - 1,000,000 1,000.00
1,000,001 - 5,000,000 2,000.00
5,000,001 - 10,000,000 3,000.00
10,000,001 and above 4,000.00

A percentage is calculated for each board or commission by dividing the board or commission's base assessment by the total base assessment for all boards and commissions.


For example, assuming Commission A's Base Assessment is $4,000 divided by an assumed Total Base Assessment of $80,000 results in 5% (.05)


(2) Step 2 - The difference between the total financial contribution and the total base assessment is apportioned to each board or commission using the percentage calculated in subsection (1) subject to a $7,500 cap on any one board or commission;


For example, assuming a Total Financial Contribution of $105,000 minus the assumed Total Base Assessment of $80,000 results in a difference of $25,000. $25,000 multiplied by Commission A's .05 equals $1,250. This is Commission A's portion of the difference.


(3) Step 3 - If any commission reaches the $7,500 cap in Step 2, the difference between the amount calculated for that board or commission in subsection (2) and $7,500 would be recalculated among the remaining commissions or boards using a percentage of each commission's base assessment to the total base assessment less the base assessment of the commission that reached the cap.


For example, assume that Commission A's percentage remains 5% but that the difference between the Total Financial Contribution and the Total Base Assessment is $180,000. $180,000 multiplied by .05 equals $9,000. $9,000 exceeds the $7,500 cap for Commission A by $1,500. This $1,500 would be apportioned between the other boards and commissions excluding Commission A.


For example, assume that Commission B's base assessment is $3,000. The Total Base Assessment excluding Commission A is now $76,000 ($80,000 less Commission A's $4,000). Commission B's base assessment of $3,000 divided by $76,000 results in .04 rounded (4%). $1,500 (the excess over the cap for Commission A) multiplied by .04 equals $60, which is Commission B's share of the excess.


(4) Step 4 - A commodity commission or board's contribution is the sum of the base assessment from subsection (1) and the calculations in subsections (2) or (3) whichever is applicable.


For example, using the calculations in subsection (2), Commission A's contribution is $5,250 ($4,000 base assessment plus $1,250 apportioned share).


Using the calculations in subsection (3), Commission A's contribution is $11,500 ($4,000 base assessment plus the $7,500 cap).

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Washington State Code Reviser's Office