WSR 08-03-106



[ Filed January 22, 2008, 11:13 a.m. ]

Original Notice.

Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

Title of Rule and Other Identifying Information: Hops, chapter 16-532 WAC.

Hearing Location(s): Washington Hop Commission Office, 301 West Prospect Place, Moxee, WA 98936, on Monday, March 3, 2008, at 1:00 p.m.

Date of Intended Adoption: June 25, 2008.

Submit Written Comments to: Kelly Frost, P.O. Box 42560, Olympia, WA 98504-2560, e-mail, fax (360) 902-2092, by 5:00 p.m., March 5, 2008.

Assistance for Persons with Disabilities: Contact WSDA receptionist by February 15, 2008, TTY 1-800-833-6388 or (360) 902-1976.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 16-532-035 Inspection required, require that growers provide a bale count when hops are submitted for inspection. A formula is provided for growers to use in estimating the number of bales for nonbaled hops. Growers are assessed based upon the number of pounds of hops produced (200 pounds = one bale). An accurate accounting is important for commission budgeting and planning activities.

WAC 16-532-040 Assessment and collections, increase the assessment rate per "affected unit" from $1.80 to $2.50. The increase is necessary to support specific programs that benefit the hop industry, including $0.20 per bale for pesticide registration and international harmonization of pesticide regulatory standards; $0.15 per bale for trade education programs; and $0.35 per bale to provide additional funding for research and administrative functions. The increases are in response to inflationary factors and the loss of certain grant funds that have been used in the past to support these activities.

Reasons Supporting Proposal: Growers are assessed per "affected unit" (200 pounds, which is equivalent to a bale). An accurate count supports sound programming decisions and budgeting activities. The information is currently requested by the WSDA hop inspection laboratory for hops that utilized the submitted sample inspection option. However, the information is not always provided. The assessment increase is necessary to continue funding the programs and services listed above. These changes will implement the petition received from the hop 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 hop producers pursuant to chapter 15.65 RCW.

Name of Proponent: Washington state hop commission, governmental.

Name of Agency Personnel Responsible for Drafting: Kelly Frost, P.O. Box 42560, Olympia, WA 98504, (360) 902-1802; Implementation and Enforcement: Ann George, P.O. Box 1207, Moxee, WA 98936, (509) 453-4749.

No small business economic impact statement has been prepared under chapter 19.85 RCW. In accordance with RCW 15.65.570, the adoption of the final amendments to chapter 16-532 WAC will be determined by a referendum vote of affected parties.

A cost-benefit analysis is not required under RCW 34.05.328. The department of agriculture and the Washington hop commission are not named agencies in RCW 34.05.328 (5)(a)(i).

January 14, 2008

Valoria H. Loveland



AMENDATORY SECTION(Amending WSR 06-15-105, filed 7/17/06, effective 8/17/06)

WAC 16-532-035   Inspection required.   (1) Before marketing or processing, all varieties of hops produced in the state of Washington must be inspected and certified by the Federal/State Hop Inspection Service for quality and condition of seed, leaf and stem according to the standards established by the Federal Grain Inspection Service of the United States Department of Agriculture. All lots of hops submitted for inspection shall include a bale count or, in the case of nonbaled hops, an estimated bale count based on total weight divided by two hundred pounds.

(2) Any hops that are baled on a producer's farm must be officially sampled by a Washington state department of agriculture inspector.

[Statutory Authority: Chapters 15.65 and 34.05 RCW. 06-15-105, 16-532-035, filed 7/17/06, effective 8/17/06. Statutory Authority: RCW 15.65.050. 95-17-118 (Order 5077), 16-532-035, filed 8/23/95, effective 9/23/95. Statutory Authority: Chapter 15.65 RCW. 88-24-028 (Order 1992), 16-532-035, filed 12/2/88.]

AMENDATORY SECTION(Amending WSR 05-15-098, filed 7/15/05, effective 8/15/05)

WAC 16-532-040   Assessments and collections.   (1) Assessments.

(a) The annual assessment on all varieties of hops shall be ((one)) two dollars and ((eighty)) fifty cents per affected unit.

(b) For the purpose of collecting assessments the board may:

(i) Require handlers to collect producer assessments from producers whose production they handle, and remit the same to the board; or

(ii) Require the person subject to the assessment to give adequate assurance or security for its payment; or

(iii) Require the person subject to the assessment to remit assessments for any hops which are processed prior to the first sale; or

(iv) Require the person subject to the assessment to remit an inventory report for any hops which are not processed or sold prior to December 31 of the year in which they are produced.

(c) Subsequent to the first sale or processing, no affected units shall be transported, carried, shipped, sold, marketed, or otherwise handled or disposed of until every due and payable assessment herein provided for has been paid and the receipt issued. The foregoing shall include all affected units shipped or sold, both inside and outside the state.

(2) Collections. Any moneys collected or received by the board pursuant to the provisions of the order during or with respect to any season or year may be refunded on a pro rata basis at the close of such 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 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 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 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 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 to defray the cost of enforcing the collecting of the same. In the event of failure of such person or persons to pay any such due and payable assessment or other such sum, the board may bring a civil action against such person or persons in a state court of competent jurisdiction for the collection thereof, together with the above specified ten percent thereon, and such action shall be tried and judgment rendered as in any other cause of action for debt due and payable.

[Statutory Authority: RCW 15.65.047 and chapter 34.05 RCW. 05-15-098, 16-532-040, filed 7/15/05, effective 8/15/05. Statutory Authority: RCW 15.65.050. 97-17-096, 16-532-040, filed 8/20/97, effective 9/20/97; 95-17-118 (Order 5077), 16-532-040, filed 8/23/95, effective 9/23/95. Statutory Authority: Chapter 15.65 RCW. 91-15-019 (Order 2090), 16-532-040, filed 7/10/91, effective 8/10/91. Statutory Authority: RCW 15.65.170. 87-10-059 (Order 1927), 16-532-040, filed 5/6/87, effective 6/8/87. Statutory Authority: Chapter 15.65 RCW. 83-16-041 (Order 1800), 16-532-040, filed 7/29/83; 80-05-090 (Order 1686), 16-532-040, filed 5/1/80; 79-01-045 (Order 1593), 16-532-040, filed 12/21/78; Order 1332, 16-532-040, filed 1/17/74; Marketing Order Article IV, A through C, filed 7/1/64.]

Washington State Code Reviser's Office