Original Notice.

     Title of Rule and Other Identifying Information: Mint, chapter 16-540 WAC, Washington Mint Commission marketing order.

     Hearing Location(s): Washington State Department of Agriculture, 21 North 1st Avenue, Suite 238, 2nd Floor, Yakima, WA, on November 10, 2004, at 1:00 p.m.

     Date of Intended Adoption: April 8, 2005.

     Submit Written Comments to: Lynn Briscoe, Commodity Commission Coordinator, Washington State Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, e-mail lbriscoe@agr.wa.gov, fax (360) 902-2092, by November 12, 2004, 5:00 p.m.

     Assistance for Persons with Disabilities: Contact Rochelle Painter at (360) 902-2060, by November 3, 2004, TTY (360) 902-1996.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: During past legislative sessions, significant amendments were made to the Washington Mint Commission's enabling statute, chapter 15.65 RCW. These statutory changes prompted the proposed amendments to chapter 16-540 WAC. The proposed amendments expand the commission's policy and purpose statements, update the definitions, update the commission member selection process, add additional power and duties to benefit the industry, update meeting and administrative procedures, and expand the commission's information and education role. These proposed amendments are intended to achieve consistency with the statute, as well as, improve the readability and clarity of the marketing order. The following marketing order sections are affected by the proposed amendments: New sections WAC 16-540-005 Marketing order for Washington mint -- Policy statement and 16-540-006 Marketing order purposes; and amending WAC 16-540-010 Definitions, 16-540-020 The mint commodity board, 16-540-040 Assessments and collections and 16-540-060 Termination of the order; and repealing WAC 16-540-030 Marketing order purposes and 16-540-070 Effective time.

     Reasons Supporting Proposal: The proposed amendments are intended to make the marketing order consistent with the Commodity Commission enabling statute, chapter 15.65 RCW, and to implement the petition received from the Washington Mint Commission in accordance with RCW 15.65.050.

     Statutory Authority for Adoption: RCW 15.65.047 and chapter 34.05 RCW.

     Statute Being Implemented: Chapter 15.65 RCW.

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

     Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: Any rule proposal that results from this rule-making process will not be adopted unless the proposed rules are also approved in a referendum of affected mint producers pursuant to chapter 15.65 RCW.

     Name of Proponent: Washington Mint Commission, governmental.

     Name of Agency Personnel Responsible for Drafting: Lynn Briscoe, Olympia, Washington, (360) 902-2043; Implementation and Enforcement: Washington Mint Commission, Kennewick, Washington, (509) 585-5460 and Department of Agriculture, Olympia, Washington, (360) 902-2043.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Any adoption of amendments to chapter 16-540 WAC would ultimately be determined by a referendum vote of the affected parties. A formal small business economic impact statement under chapter 19.85 RCW is not required because of the exemption granted in RCW 15.65.570(2).

     A cost-benefit analysis is not required under RCW 34.05.328. The Department of Agriculture and the Washington Mint Commission are not named agencies in RCW 34.05.328 (5)(a)(i).

October 5, 2004

William E. Brookreson

Deputy Director

OTS-7587.1

NEW SECTION
WAC 16-540-005   Marketing order for Washington mint -- Policy statement.   (1) The marketing of mint within this state is in the public interest. It is vital to the continued economic well-being of the citizens of this state and their general welfare that its mint be properly promoted by:

     (a) Enabling producers of mint to help themselves in establishing orderly, fair, sound, efficient, and unhampered marketing, grading, and standardizing of the mint they produce; and

     (b) Working towards stabilizing the agricultural industry by increasing consumption of mint within the state, the nation, and internationally.

     (2) That it is in the overriding public interest that support for the mint industry be clearly expressed, that adequate protection be given to the industry and its activities and operations, and that mint be promoted individually and as part of a comprehensive agricultural industry to:

     (a) Enhance the reputation and image of Washington state's mint.

     (b) Increase the sale and use of Washington state's mint in local, domestic, and foreign markets.

     (c) Protect the public by educating the public in reference to the quality, care, and methods used in the production of Washington state's mint.

     (d) Increase the knowledge of the health-giving qualities and dietetic value of Washington state's mint and products.

     (e) Support and engage in programs or activities that benefit the planting, production, harvesting, handling, processing, marketing, and uses of mint produced in Washington state.

     (3) The director is authorized to implement, administer, and enforce chapter 15.65 RCW through the adoption of this marketing order.

     (4) The Washington state mint commodity board exists primarily for the benefit of the people of the state of Washington and its economy and, with oversight by the director, the board is authorized to speak on behalf of Washington state government with regard to mint under the provisions of this marketing order.

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     (1) To enable producers of mint plants to help themselves develop improved production methods and/or programs for the control of disease, insects, and weeds associated with mint plant culture and to provide for the dissemination of information to affected producers.

     (2) To carry out the purposes of the order the board shall provide for a program in one or more of the following areas:

     (a) Provide for aid in research in the production of mint plants and the distilling of mint oil by producers and to expend the necessary funds for such purposes. Insofar as practicable, such research shall be carried out by experiment stations of Washington State University, but if in the judgment of the board said experiment stations do not have adequate facilities for a particular project or if some other research agency has better facilities therefor, the project may be carried out by other research agencies selected by the board.

     (b) Provide for collection and dissemination of information pertaining to mint.

[]

     (1) "Director" means the director of agriculture of the state of Washington or his/her duly appointed representative.

     (2) "Department" means the department of agriculture of the state of Washington.

     (3) "Act" means the Washington State Agricultural ((Enabling Act of 1961)) Commodity Boards Act or chapter 15.65 RCW.

     (4) "Person" means any ((person)) individual, firm, ((association or)) corporation, limited liability company, trust, association, partnership, society or any other organization of individuals, or any unit or agency of local or state government.

     (5) "Affected producer" or "producer" means any person who produces, or causes to be produced in commercial quantities, in the state of Washington, any variety of mint plant from which the essential oil is distilled or extracted. "To produce" means to act as a producer. For the purposes of the mint marketing order, "producer" shall include bailees who contract to produce or grow any agricultural product on behalf of a bailor who retains title to the essential oil and its resulting agricultural product or the agricultural product delivered for further production or increase.

     (6) "Commercial quantity" means all of the mint plants produced in any calendar year by any producer, from which the essential oil is distilled or extracted.

     (7) "Affected handler" means any person who acts as principal or agent or otherwise in buying, selling, marketing or distributing mint oils produced from mint plants not grown by him/her. "Affected handler" does not include a common carrier used to transport an agricultural commodity. "To handle" means to act as a handler.

     (8) "Producer-handler" means any person who acts both as a producer and as a handler with respect to mint oil. A producer-handler shall be deemed to be a producer with respect to the mint plants and/or oil which he/she produces, and a handler with respect to the mint oil which he/she handles, including those produced by himself/herself.

     (9) "Mint oil" means essential oil that is distilled from any variety of mint plant.

     (10) "Mint commodity board" hereinafter referred to as "board" or "commission" means the commodity board formed under ((the provisions of Article II of this order)) WAC 16-540-020.

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

     (12) "Affected area" means ((that portion of)) the state of Washington ((located east of the summit of the Cascade Mountains)).

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

     (14) "Affected unit" means one pound of mint oil as distilled from mint plants grown by an affected producer.

[Article I, § A, filed 12/20/66, effective 2/1/67.]

     (2) Board membership.

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

     (i) Director-appointed affected producer positions on the board shall be designated as position 1, position 2, position 6, and position 7.

     (ii) Elected affected producer positions on the board shall be designated as position 3, position 4, and position 5.

     (iii) The position representing the director who is neither an affected producer nor an affected handler shall be designated as position 8.

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

     (i) District I shall have four board members, being positions 1, 2, 3 and 4 and shall include the counties of Kittitas, Yakima and Benton.

     (ii) District II shall have three board members, being positions 5, 6 and 7 and shall include all other counties ((east of the Cascade Mountains)) located in the state of Washington.

     (3) Board membership qualifications.

     (a) The affected producer members of the board ((shall)) must be practical producers of mint plants in the district in and for which they are nominated and appointed or elected and each shall be a citizen((s)) and resident((s)) of the state of Washington, over the age of ((twenty-five)) eighteen years((, each of whom is and has)). Each affected producer board member must be and have been actually engaged in producing mint plants within the state of Washington for a period of five years and has during that time derived a substantial portion of his/her income therefrom and ((who)) is not engaged in business, directly or indirectly, as a handler or other dealer.

     (b) The qualifications of members of the board must continue during their term 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 appointed or 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 two - one year

     Positions three, four and eight - two years

     Positions five, six and seven - three years

     ((No)) (c) Except for the director's representative, no appointed or elected member of the board may serve more than two full consecutive three-year terms.

     (d) To accomplish the transition to a commodity board structure where the director appoints a majority of the board members, the names of the currently elected board members in positions one, two, six and seven shall be forwarded to the director for appointment within thirty days of the effective date of this amended marketing order.

     (5) Nomination ((and election)) of elected or director-appointed board members.

     (a) For the purpose of nominating candidates for appointment or election to board membership the director shall call separate meetings of affected producers.

     (b) Each year the director shall call ((for)) a nomination meeting((s)) for both elected and director-appointed affected producer board members in those districts whose board members' term ((is)) are about to expire. ((Such)) The meeting((s)) shall be held at least thirty days in advance of the date set by the director for the election or advisory vote of board members.

     (c) Notice of ((every such)) a nomination meeting shall be published in a newspaper((s)) of general circulation within the affected district not less than ten days in advance of the date of ((such)) the meeting and in addition, written notice of every such meeting shall be given to all affected producers within such affected district according to the list maintained by the ((director pursuant to RCW 15.65.200 of the act)) board pursuant to RCW 15.65.295.

     (d) Nonreceipt of notice by any interested person shall not invalidate the proceedings at such nomination meeting.

     (e) Any qualified affected producer may be nominated orally for membership on the board at ((such)) the nomination meeting((s)). Nominations may also be made within five days after ((any such)) the nomination meeting by written petition filed with the director signed by not less than five affected producers.

     (f) When only one nominee is nominated by the affected producers for any position, RCW 15.65.250 shall apply.

     (6) Election or advisory vote of board members.

     (a) ((Members of the board shall be elected by secret mail ballot within the month of June)) An election or advisory vote shall be conducted by secret ballot under the supervision of the director within the month of June. Each affected producer shall be entitled to one vote.

     (b) Elected affected producer members of the board shall be elected by a majority of the votes cast by the affected producers within the affected district. ((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) An advisory vote shall be conducted for affected producer board members appointed by the director under the provisions of RCW 15.65.243. The names of the two candidates receiving the most votes in the advisory vote shall be forwarded to the director for potential appointment to the board. In the event there are only two candidates nominated for a board position, an advisory vote may not be held and the candidates' names shall be forwarded to the director for potential appointment.

     (d) Notice of every election or advisory vote for board membership shall be published in a newspaper of general circulation within the affected district not less than ten days in advance of the date of ((such)) the election or advisory vote. Not less than ten days prior to every election or advisory vote for board membership, the director shall mail a ballot of the candidates to each affected producer entitled to vote whose name appears upon the list of such affected producers maintained by the ((director in accordance with RCW 15.65.200)) board pursuant to RCW 15.65.295. Any other affected producer entitled to vote may obtain a ballot by application to the director upon establishing his/her qualifications.

     (e) Nonreceipt of a ballot by an affected producer shall not invalidate the election or advisory vote of any board member.

     (7) Vacancies ((prior to election)).

     (a) In the event of a vacancy on the board in an elected position, the remaining members shall select a qualified person to fill the unexpired term. The appointment shall be made at the board's first or second meeting after the position becomes vacant.

     (b) In the event of a vacancy in a director-appointed position, the position shall be filled as specified in RCW 15.65.270.

     (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 ((shall receive not to exceed twenty dollars for each day in actual attendance on or traveling to and from meetings of the board or on special assignment for the board, together with subsistence and traveling expense at the rate allowed by law to state employees: Provided, That the method of determining whether per diem rates or actual subsistence and lodging shall be allowed shall be determined by resolution or rule of the board in advance of the incurrence of such expenses by any board member)) may be compensated in accordance with RCW 43.03.230 and shall be reimbursed for subsistence, lodging, and mileage in accordance with RCW 43.03.050 and 43.03.060, as provided for in RCW 15.65.270. The board may adopt by resolution provisions for reimbursement of actual travel expenses incurred by members and employees of the board in carrying out the provisions of this marketing order pursuant to RCW 15.65.270.

     (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, including attorneys engaged in the private practice of law subject to the approval and supervision of the attorney general, as the board determines are necessary and proper to carry out the purpose of the order and effectuate the declared policies of the act.

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

     (f) To establish a "mint board 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 often during the day as advisable.

     (g) To keep or cause to be kept in accordance with accepted standards of good accounting practice, accurate records of all assessments, collections, receipts, deposits, withdrawals, disbursements, 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 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 of the ((state of Washington)) commission. 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.

     (h) 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.

     (i) 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. The board, at least sixty days prior to the beginning of its fiscal year, shall prepare and submit to the director for approval its research plan, its commodity-related education and training plan, and its budget.

     (j) 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.

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

     (l) 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.

     (m) 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 by the act or order.

     (n) 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.

     (o) To work cooperatively with other local, state, and federal agencies; universities; and national organizations for the purposes provided in this order.

     (p) To enter into contracts or interagency agreements with any private or public agency, whether federal, state, or local. Personal service contracts must comply with chapter 39.29 RCW.

     (q) To accept and expend or retain any gifts, bequests, contributions, or grants from private persons or private and public agencies.

     (r) To enter into contract or agreements for research in the production, irrigation, processing, transportation, marketing, use, or distribution of mint.

     (s) To retain in emergent situations the services of private legal counsel to conduct legal actions on behalf of the commission. The retention of a private attorney is subject to review by the office of the attorney general.

     (t) To engage in appropriate fund-raising activities for the purpose of supporting activities authorized by this order.

     (u) To participate in international, federal, state, and local hearings, meetings, and other proceedings relating to the production, irrigation, manufacture, regulation, transportation, distribution, sale, or use of mint including activities authorized under RCW 42.17.190, including the reporting of those activities to the public disclosure commission.

     (v) To maintain a list of the names and addresses of affected producers that may be compiled from information used to collect assessments under the provisions of this marketing order and data on the value of each affected producer's production for a minimum three-year period pursuant to RCW 15.65.280.

     (w) To maintain a list of the names and addresses of persons who handle mint within the affected area and data on the amount and value of the mint handled for a minimum three-year period by each person pursuant to RCW 15.65.280.

     (x) To maintain a list of the names and addresses of all affected persons who produce mint and the amount, by unit, of mint produced during the past three years pursuant to RCW 15.65.295.

     (y) To maintain a list of all persons who handle mint and the amount of mint handled by each person during the past three years pursuant to RCW 15.65.295.

     (z) To establish a foundation using commission funds as grant money for the purposes established in this marketing order.

     (aa) 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 quarterly, with the time and date thereof to be fixed by resolution of the board and the meetings shall be held in accordance with chapter 42.30 RCW (Open Public Meetings Act). Notice of the time and place of regular meetings shall be published on or before January of each year in the Washington State Register. Notice of any change to the meeting schedule shall be published in the state register at least twenty days prior to the rescheduled meeting date.

     (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 through regular wire news services and radio-television press.

     (c) The board shall establish by resolution, the time, place and manner of calling special meetings with reasonable notice to the members: Provided, That the notice to a member of any special meeting may be waived by a waiver ((thereof by each)) from that member of the board. Notice for special meetings shall be in compliance with chapter 42.30 RCW.

[Article II, §§ A-K, filed 12/20/66, effective 2/1/67.]

     (a) The fixed annual assessment on all varieties of mint oil subject to this marketing order shall be five cents per pound of oil as weighed by first purchaser.

     (b) First purchasers shall collect assessments at time of payment for oil, from producers whose production they handle and remit the same to the board in accordance with procedures adopted by the board. Producers and producer-handlers who ship their oil direct to handlers outside of the state of Washington shall remit assessments to the board at time of shipment.

     (2) Collections. Any moneys collected or received by the board pursuant to the provisions of ((the)) this order during or with respect to any season or year may be refunded on a pro rata basis at the close of ((such)) the season or year or at the close of such longer period as the board determines to be reasonably adapted to effectuate the declared policies of this act and the purposes of ((such)) the marketing ((agreement or)) order to all persons from whom ((such)) moneys were collected or received, or may be carried over into and used with respect to the next succeeding season, year or period whenever the board finds that the same will tend to effectuate ((such)) the policies and purposes.

     (3) Penalties. Any due and payable assessment herein levied in such specified amount as may be determined by the board pursuant to the provisions of the act and ((the)) this order, shall constitute a personal debt of every person so assessed or who otherwise owes the same, and the same shall be due and payable to the board when payment is called for by it. In the event any person fails to pay the board the full amount of ((such)) the assessment or such other sum on or before the date due, the board may, and is hereby authorized to add to such unpaid assessment or sum an amount not exceeding ten percent of the ((same)) unpaid assessment to defray the cost of enforcing the collecting of ((the same)) it. In the event of failure of ((such)) a person or persons to pay any ((such)) due and payable assessment or other ((such)) sum, the board may bring a civil action against ((such)) the person or persons in a state court of competent jurisdiction for the collection thereof, together with the above specified ten percent ((thereon)), and ((such)) the action shall be tried and judgment rendered as in any other cause of action for debt due and payable.

[Statutory Authority: RCW 15.65.050. 96-03-150 (Order 5091), § 16-540-040, filed 1/24/96, effective 2/24/96. Statutory Authority: Chapter 15.65 RCW. 84-10-046 (Order 1823), § 16-540-040, filed 5/2/84; Order 1406, § 16-540-040, filed 7/23/75; Article IV, §§ A-C, filed 12/20/66, effective 2/1/67.]

[Article VI, § A, filed 12/20/66, effective 2/1/67.]

     The following sections of the Washington Administrative Code are repealed:

WAC 16-540-030	Marketing order purposes.
WAC 16-540-070	Effective time.

© Washington State Code Reviser's Office