DAIRY PRODUCTS COMMISSION

[Filed April 1, 2020, 9:01 a.m.]

Title of Rule and Other Identifying Information: Chapter 142-40 WAC, Promotional hosting.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of this rule making is to update the dairy products commission's promotional hosting rules and to define requirements for business meals and travel expense reimbursements.

Reasons Supporting Proposal: Under RCW 15.44.038, unless otherwise defined in rule, each commission member or employee shall be reimbursed at the rates allowed by RCW 43.03.050 and 43.03.060. Placing commission travel requirements in rule will allow the commission greater flexibility in approving and reimbursing for travel expenses incurred in carrying out the commission's mission.

Statutory Authority for Adoption: RCW 15.44.038 and 15.44.060.

Statute Being Implemented: RCW 15.44.038.

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

Name of Proponent: Washington dairy products commission, governmental.

Name of Agency Personnel Responsible for Drafting and Implementation: Celeste Piette, Lynnwood, Washington; and Enforcement: Steve Seppi, Lynnwood, Washington.

This notice meets the following criteria to use the expedited adoption process for these rules:

Relates only to internal governmental operations that are not subject to violation by a person.

Explanation of the Reason the Agency Believes the Expedited Rule-Making Process is Appropriate: The expedited rule-making process is appropriate because these rules relate only to the administration of the Washington dairy products commission.

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Teresa Norman, Washington State Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, phone 360-902-2043, fax 360-902-2092, email tnorman@agr.wa.gov, AND RECEIVED BY June 2, 2020.

Sr. Director Operations

and Business Management

Chapter 142-40 WAC

PROMOTIONAL HOSTING, TRAVEL, AND BUSINESS EXPENSES

AMENDATORY SECTION(Amending WSR 92-14-035, filed 6/24/92, effective 7/25/92)

WAC 142-40-010Purpose.

Section 1, chapter 26, Laws of 1985 (RCW 15.04.200) enacted under the authority of Article VIII of the Washington state Constitution as amended, authorized the expenditure of agricultural commodity commission assessments for agricultural development or trade promotion and promotional hosting and provides that agricultural commodity commissions shall adopt rules governing promotional hosting expenditures by agricultural commodity commission employees, agents, or commissioners.

The purpose of these rules is to set forth the parameters governing promotional hosting, travel, and meal expenditures for the Washington dairy products commission.

AMENDATORY SECTION(Amending WSR 92-14-035, filed 6/24/92, effective 7/25/92)

WAC 142-40-020Definitions.

(("Promotional hosting" as used in these rules 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 milk and other dairy products.))The definitions in this section apply throughout the chapter unless the context clearly requires otherwise.

"Commission" means the Washington dairy products commission.

"GSA" means the general services administration, an independent agency of the United States government.

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

"Promotional hosting" means the hosting of individuals or groups of individuals at meetings, meals, events, tours, or other gatherings for the purpose of agricultural development, trade promotion, cultivating trade relations, or in the aid of the marketing, advertising, or sale of Washington dairy products.

"SAAM" means the state administrative and accounting manual.

AMENDATORY SECTION(Amending WSR 92-14-035, filed 6/24/92, effective 7/25/92)

WAC 142-40-030((Implementation.))Promotional hosting.

The implementation of the rules governing promotional hosting expenditures for the Washington dairy products commission shall be as follows:

(1) Budget approval. Commission expenditures for agricultural development ((or)), trade promotion, and promotional hosting shall be pursuant to specific budget items in the commission's annual budget as approved by the commission ((at regular meetings held to review such matters))and the director.

(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:

(a) Commissioners;

(b) Administrators;

Individual commissioners shall make promotional 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 identified and supported by ((vouchers to which receipts are attached. Voucher forms will be supplied by the commission, and))receipts in accordance with the reimbursement policies of the commission. Advance payment of expenses is not permitted. In the event that a vendor requests advance payment for goods or services, commission members should engage a staff supervisor for proper handling of funds. Expense reports and reimbursement requests shall require the following information:

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

(b) General purpose of the hosting;

(d) Location of the hosting;

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

(f) ((Signature of))Authentication by person seeking payment or reimbursement.

(4) The ((chairperson))chair of the commission ((and/or the manager are)), executive director, and commission staff, as authorized in writing by the executive director, are authorized to approve direct payment or reimbursements submitted in accordance with these rules, provided that the chair, executive director, and commission staff are not authorized to approve their own direct promotional hosting payments or promotional hosting reimbursements.

(5) The following persons may be hosted when it is reasonably believed such hosting will promote agriculture development, promote trade, cultivate trade relations ((and promote)), or aid in the marketing, advertising, or sales of milk and other dairy products, provided that such hosting shall not violate federal or state laws including, but not limited to, state or federal ethics or conflicts of interest laws:

(a) Individuals from private business, associations, commissions, and accompanying staff and interpreter(s);

(b) Members of the media and accompanying staff and interpreter(s);

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

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

(((e)))(f) Commissioners and employees of the commission when their attendance at meetings, meals, and gatherings at which the persons described in (a) through (((d)))(e) of this subsection are being hosted, will promote agricultural development, promote trade, cultivate trade relations ((and promote sales of)), or aid in the marketing, advertising, or sales of Washington milk and other dairy products.

(((f)))(g) Spouses, partners, or significant others of the persons listed in (a)((, (b), (c)))through (d), and (((e)))(f) of this subsection when attendance of such spouse, partner, or significant other is customary and expected or will serve to promote agricultural business development, promote trade, cultivate trade relations, or ((promote the))aid in the marketing, advertising, or sale of Washington milk or other dairy products.

WAC 142-40-040Travel.

(1) Except as provided in subsections (7) and (8) of this section, all overnight or out-of-state travel by commissioners and by commission staff must be approved in accordance with commission policy in advance of departure to be eligible for travel expense reimbursement.

(2) All travel expenses must be within the preapproved budget limits as provided for in WAC 142-40-030(1).

(3) Reimbursement for transportation expenses shall be at actual cost subject to the following limitations:

(a) If an employee chooses not to use the state's travel services, travel must be booked at the lowest commercially reasonable cost and exclude any fees due to personal preference or convenience not necessary or critical to commission business.

(b) If an employee chooses not to use the state's travel services, coach airfare will be reimbursed with the expectation that the lowest commercially reasonable fare is found.

(c) If a commissioner or commission employee uses his or her automobile for transportation, mileage shall be reimbursed at the current rate set by the GSA for business travel.

(d) Car rentals up to full-size cars and related fuel expenses. Larger or different types of vehicles require prior approval.

(e) Other transport, including public transit, taxi, and rideshare services, related to commission business travel shall be reimbursed.

(f) Customary tips for transport and meals shall be reimbursed in accordance with commission policy.

(4) Reimbursement for lodging expenses shall be at actual costs and travelers should adhere to the GSA per diem rates as closely as possible. Accommodations should be standard rooms and must be the lowest commercially reasonable cost and exclude any fees due to personal preference or convenience not necessary or critical to commission business.

(5) Reimbursement for meals shall be at actual costs, plus tip, provided that such costs are reasonable for the particular market in which the expense is incurred.

(6) Each person traveling on official commission business shall submit request for reimbursement in accordance with commission policy. Receipts for each expense for which reimbursement is requested must accompany the reimbursement request. Expenses will not be reimbursed unless such a request, accompanied by receipts where required, is timely submitted. Receipts may not be required for expenses under a certain dollar threshold as stated by the Washington dairy products commission policies, which are to be reviewed annually.

(7) No advance approval of travel and related expenses is required for attendance at regular or special meetings of the commission or a committee thereof within the state of Washington.

(8) Day trips by commissioners and commission staff, as well as overnight travel within Washington state by commission staff for commission business, do not require approval in advance of departure and travel-related costs for day trips are reimbursable under WAC 142-40-040(5).

WAC 142-40-050Other business meals.

(1) The commission shall pay for or reimburse employees for meals, coffee, and light refreshments for certain meetings, industry activities, and training regardless of travel status when:

(a) The purpose of the meeting is to conduct official commission business or provide training to employees or board members;

(b) The meals are an integral part of the meeting, conference, convention, or training session and separating the meeting from the meal would be otherwise disruptive to commission business;

(c) The meeting or training session takes place away from the employee's or official's regular workplace ("regular workplace" excludes meeting and conference rooms); and

(d) The agency obtains an itemized receipt for the actual costs of the meals with meetings.

(2) Meals will be reimbursed at actual cost incurred. Meetings to be incurred under this section include those in which attendance is advantageous in achieving the goals of the commission including, but not limited to: Strategic planning meetings, employee review and evaluation meetings, board meetings, continuing education and professional development training sessions, information and research meetings, events or conferences.

(3) To be eligible for reimbursement, employees must submit the following to their direct supervisor on their expense reimbursement request: Itemized receipt, name(s) of the organization or persons attending the meeting, and the purpose or accomplishments expected.

(4) Consistent with SAAM 70.15.10, recurring meals with meetings may receive one-time approval annually. To be eligible for reimbursement, the expense must fall within the preapproved budget and definition for recurring meals with meetings for the year, itemized receipts must be provided, and the meeting attendees must be identified.