Original Notice.

     Preproposal statement of inquiry was filed as WSR 05-11-103.

     Title of Rule and Other Identifying Information: Rules of the Washington State Potato Commission, chapter 16-516 WAC.

     Hearing Location(s): Big Bend Community College, Applied Technology Education Center, 7611 Bolling Street N.E., Moses Lake, WA 98837, on August 17, 2005, at 2:00 p.m.; and at the Best Western Cotton Tree Inn, Convention Center, Lopez Room, 2300 Market Street, Mount Vernon, WA 98273, on August 18, 2005, at 2:00 p.m.

     Date of Intended Adoption: January 4, 2006.

     Submit Written Comments to: Karen Bonaudi, Interim Executive Director, 108 Interlake Road, Moses Lake, WA 98837, e-mail kbonaudi@potatoes.com, fax (509) 765-4853, by August 19, 2005.

     Assistance for Persons with Disabilities: Contact Rochelle Painter at (360) 902-2060, by August 10, 2005, TTY (360) 902-1996.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of this rule making is to amend and repeal sections within the rules of the Washington State Potato Commission. Proposed amendments will update "hosting" language and will remove language referring to prepayment of assessments through the purchase of stamps. The following sections are affected by the proposed amendments: Amending WAC 16-516-100 Definitions, 16-516-110 Commission rules -- Reporting and paying assessments, 16-516-150 Notice to director and 16-516-170 Rules for implementation of promotional hosting by the Washington State Potato Commission; and repealing WAC 16-516-140 Conditions for prepayment of assessments and maximum payable.

     Reasons Supporting Proposal: The Washington State Potato Commission is proposing to discontinue activities relating to advertising and promotion. Therefore, all references to "promotional" hosting are being removed. The proposal also removes outdated language related to the collection of assessments.

     Statutory Authority for Adoption: Chapter 15.66 RCW, specifically RCW 15.66.140(2), and chapter 34.05 RCW.

     Statute Being Implemented: Chapter 15.66 RCW.

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

     Name of Proponent: Washington State Potato Commission, governmental.

     Name of Agency Personnel Responsible for Drafting: Lynn Briscoe, Washington State Department of Agriculture, Olympia, (360) 902-2043; Implementation and Enforcement: Karen Bonaudi, Moses Lake, (509) 765-8845.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Technical amendments being proposed do not require a small business economic impact statement pursuant to RCW 19.85.030.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington State Potato Commission is not a named agency in RCW 34.05.328 (5)(a)(i).

June 30, 2005

Karen Bonaudi

Interim Executive Director

OTS-8142.2

AMENDATORY SECTION(Amending WSR 01-09-028, filed 4/10/01, effective 5/11/01)

WAC 16-516-100   Definitions.   The following definitions apply to rules in this chapter adopted by the Washington Potato Commission unless otherwise provided:

     "Hosting" may include providing meals, refreshments, lodging, transportation, gifts of nominal value, reasonable and customary entertainment, and normal incidental expenses at meetings or gatherings.

     "((Promotional)) Trade relations hosting" means the hosting of individuals and groups of individuals at meetings, meals, and gatherings for the purpose of cultivating trade relations ((and promoting sales of)) for Washington state potatoes and potato products.

[Statutory Authority: Chapter 15.66 RCW and RCW 15.04.200. 01-09-028, § 16-516-100, filed 4/10/01, effective 5/11/01.]

     (1) The commission shall have the discretion to determine which one or more of the methods hereinafter set forth shall be respectively followed by each respective affected producer and or handler in reporting and paying assessments.

     (2) Assessments shall be paid in accordance with one or more of the following methods as prescribed by the commission, in its discretion, for each respective affected producer and or handler:

     (((a) By means of the purchase of stamps, to be known as "Washington potato commission stamps," from the Washington state potato commission

     (i) The said stamps shall be in denominations of 1¢, 2¢, 10¢, 50¢, $1.00, $2.00, $4.00, $6.00, and $8.00 respectively and shall be in such form as may from time to time be determined by the commission.

     (ii) The stamps shall be printed in serially numbered sheets of ten stamps of like denomination per sheet, the individual stamps on each sheet to bear the same number as the sheet of which they are a part.

     (iii) Such stamps shall be purchased from the Washington state potato commission by handlers, including producers who handle their own potatoes, and shall be affixed, in an amount equal to 2¢ per hundred weight of potatoes listed on the document, to such shipping or other document as the commission may from time to time designate, at or prior to the time the shipping permit for such potatoes is issued by the inspector of the horticultural division of the Washington state department of agriculture: Provided, however, That nothing herein contained shall prevent the handler from paying the amount of assessment due upon such potatoes in cash or by check at or prior to the issuance of the shipping permit in lieu of affixing such stamps to such document. Such document shall, however, in either event, be prepared by the inspector issuing the shipping permit and shall be forwarded by him, together with stamps affixed or accompanying payment in lieu of stamps, to the office of the commission at such intervals as the manager of the commission may from time to time designate for each respective handler. Stamps shall be deemed cancelled when affixed to such document.

     (iv) In order to pay for such stamps, or to provide funds for the payment made in lieu thereof, handlers, including warehousemen and processors, receiving potatoes from a producer, shall collect the assessment of 2¢ per hundred weight of potatoes handled from the respective producer thereof at the time the potatoes are first handled. Producers handling their own potatoes shall pay the assessment either through the purchase of stamps directly from the commission or through payment in lieu of stamps as provided in subsection (b) below.

     (v) In providing stamps, the commission may extend credit to the handler ordering them for a period not to exceed 30 days from date stamps are forwarded from the office of the commission to the handler, or may require payment for the stamps prior to forwarding. The commission shall provide no additional stamps to any handler until all stamps previously provided have been paid for. All stamps shall remain the property of the commission until paid for and the commission may at any time reclaim any stamps not paid for, from the handler in possession thereof.

     (vi) If stamps are issued on credit, the handler to whom issued shall be invoiced for the amount thereof, at the time of issue, which invoice will be considered as a statement, and the handler's account charged with the amount of stamps issued. Payments for stamps will be credited as received. Unused stamps may be returned for credit or, if the account has been paid in full, for cash refund.

     (vii) The party to whom stamps are issued shall be primarily liable for payment for them; if stamps are used by a party other than to whom issued, both parties shall be jointly and severally liable for payment therefor.

     (viii) If stamps are issued on credit and not paid for within the period for which credit was extended by the commission, a penalty of 10% of the unpaid balance of the account for such stamps shall be added thereto.

     (b))) (a) By means of collection from producers by handlers((, including warehousemen and processors receiving potatoes from producers,)) at the time the potatoes are first handled, and payment by said handlers to the commission of the assessments so collected.

     (i) The commission shall bill each handler at such intervals, not less frequently than monthly, as the commission may from time to time determine, for the assessments due upon potatoes handled in the preceding period for which billing has not previously been made, and upon which assessments have not been paid, computed on the basis of the quantity of potatoes so handled as recorded on potato shipping records pertaining to each handler prepared by the state of Washington department of agriculture in behalf of the commission, and filed with the commission, or, with respect to handlers who are packers or processors, on the basis of the quantity of potatoes so handled as recorded on potato shipping records pertaining to such packer or processor prepared by such packer or processor and filed with the commission.

     (ii) ((As used in subsection (b)(i) immediately preceding, the term "handler" shall be deemed to be the person, firm, or corporation designated as "shipper" on the potato shipping record form.

     (iii))) In the event potatoes subject to assessment are handled by processors or other handlers under circumstances in which no potato shipping record is filed with the commission with respect to the potatoes so handled the handler shall, at the time of submitting the report required by subsection (((b)(iv))) (a)(iii) immediately following, pay in full the assessment on the potatoes so reported.

     (((iv))) (iii) Each handler shall, in any event, file a monthly report, under oath, on forms provided by the commission, showing the name and address of the handler making the report, the quantity of potatoes handled during the preceding calendar month, the name, address, handler's lot number, and quantity of potatoes handled, for each respective producer, and the representative district as defined in WAC 16-516-020, within which the potatoes were grown. The report shall be filed with the commission not later than the 20th day of the month following that in which the potatoes were handled.

     (((c))) (b) By means of payment in cash by the producer, or handler, as determined by the commission in each respective instance, prior to the time the potatoes are shipped in either interstate or intrastate commerce.

[Rule XII, filed 6/25/62; Rule XII, § 1, filed 4/7/61; Rule XII, filed 3/3/60.]

[Order XII, § 16-516-150, filed 7/2/73.]

     (1) Budget approval: Commission expenditures for agricultural development or trade ((promotion and promotional)) relations hosting shall be pursuant to specific budget items as approved by the commission at annual public hearings on the commission budget.

     (2) Officials and agents authorized to make expenditures((. The following officials and agents are authorized to make expenditures for agricultural development or trade promotion and promotional hosting in accordance with the provisions of these rules:

     Commissioner/Commission employees -- )): Individual commissioners and commission staff shall make ((promotional)) agricultural development or trade relations hosting expenditures, or seek reimbursements for those expenditures, only in those instances where the expenditures have been approved by the commission.

     (3) Payment and reimbursement. All payments and reimbursements shall be as identified and supported by vouchers to which receipts are attached. Voucher forms will be supplied by the commission, and shall require the following information:

     (a) Name and position of each person hosted, provided that in case of a group of twenty-five or more persons, then only the name of the group hosting shall be required;

     (b) General purpose of the hosting;

     (c) Date of hosting;

     (d) To whom payment was or will be made;

     (e) Signature of person seeking payment or reimbursement;

     (4) The chairman of the commission and/or the executive director or assistant executive director are authorized to approve direct payment or reimbursements submitted in accordance with these rules.

     (5) The following persons may be hosted when it is reasonably believed such hosting will cultivate trade relations ((and promote sales of)) for the Washington state ((potatoes and)) potato ((products)) industry, provided that such hosting shall not violate federal or state conflict of interest laws:

     (a) Individuals from private business and accompanying interpreter or interpreters;

     (b) Foreign government officials and accompanying interpreter or interpreters;

     (c) Federal, state, and local officials, provided lodging, meals, and transportation will not be provided when such officials may obtain reimbursement for these expenses from their government employer;

     (d) The general public, at meetings and gatherings open to the general public;

     (e) Commissioners and employees of the commission when their attendance at meetings, meals, and gatherings at which the persons described in (a) through (d) of this subsection are being hosted will cultivate ((and promote sales of)) trade relations for the Washington state ((potatoes and)) potato ((products)) industry.

[Statutory Authority: Chapter 15.66 RCW and RCW 15.04.200. 01-09-028, § 16-516-170, filed 4/10/01, effective 5/11/01.]

     The following section of the Washington Administrative Code is repealed:

WAC 16-516-140

Conditions for prepayment of assessments and maximum payable.

© Washington State Code Reviser's Office