Original Notice.

Preproposal statement of inquiry was filed as WSR 01-02-100.

Title of Rule: Quarantine -- Agricultural pests, WAC 16-470-900 through 16-470-921.

Purpose: To amend fee schedule sections to reflect fiscal growth factors for fiscal year 2001 and fiscal year 2002, and other modifications as necessary to acknowledge changes in industry practices, environmental conditions and legislative mandates.

Statutory Authority for Adoption: Chapters 17.24, 15.14 RCW.

Statute Being Implemented: Chapters 17.24, 15.14 RCW.

Summary: Revision of chapter 16-470 WAC, increases inspection and testing fees to correspond to the fiscal growth factors of fiscal year 2001 and fiscal year 2002. The increases will occur in two stages, with one increasing 2.8%, effective June 30, 2001, and the second increasing 2.79%, effective July 1, 2001.

Reasons Supporting Proposal: Current fee schedules are not anticipated to cover costs to render services by the plant services and the pest programs. The department is mandated to support these activities through industry fees.

Name of Agency Personnel Responsible for Drafting: Mary Toohey, 1111 Washington Street, 2nd Floor, Olympia, WA 98504-2560, (360) 902-1907; Implementation and Enforcement: Thomas Wessels, 1111 Washington Street, 2nd Floor, Olympia, WA 98504-2560, (360) 902-1984.

Name of Proponent: Washington State Department of Agriculture, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 16-470-900 through 16-470-920 establishes fee schedules for inspection and testing for agricultural and quarantine plant pests. The current inspection and testing fee income is not anticipated to be adequate to cover program costs for these activities. This makes it necessary to increase fees for these services within the fiscal growth factors for both fiscal years 2001 and 2002. Many of these services are optional, as testing and diagnostic services are available from a number of agencies throughout the nation and participation in planting stock certification programs is voluntary.

Proposal Changes the Following Existing Rules: Revision of sections of WAC 16-470-900 through 16-470-920 would increase current fees for requested inspection and testing by a maximum of 2.87% for FY 01, to become effective June 30, 2001, and by a maximum of 2.79% for FY 02, to become effective July 1, 2001.

No small business economic impact statement has been prepared under chapter 19.85 RCW.

Fee	Current Rate	6/30/01 Rate	7/1/01 Rate
Hourly rate for normal business hours	$26.90	$27.65	$28.40
Hourly rate for nonbusiness hours	$34.40	$35.35	$36.30
Site inspection and/or permit review	$53.80	$55.30	$56.80

Table 1

	1 sample	5 samples	10 samples	50 samples	100 samples
Virus	$80.70	$59.20	$45.20	$17.20	$2.65
Bacteria	$35.60	$34.40	$32.25	$31.20	$31.20
Fungi	$37.65	$32.25	$31.20	$30.10	$27.90
Nematode	$27.90	$25.80	$23.65	$23.65	$21.50

Table 2a current testing fee schedule

	1 sample	5 samples	10 samples	50 samples	100 samples
Virus	$83.00	$60.80	$46.45	$17.65	$2.70
Bacteria	$36.60	$35.35	$33.15	$32.05	$32.05
Fungi	$38.70	$33.15	$32.05	$30.95	$28.70
Nematode	$28.70	$26.50	$24.30	$24.30	$22.10

Table 2b testing fees effective June 30, 2001

	1 sample	5 samples	10 samples	50 samples	100 samples
Virus	$85.30	$62.45	$47.70	$18.10	$2.75
Bacteria	$37.60	$36.30	$34.05	$32.90	$32.90
Fungi	$39.75	$34.05	$32.90	$31.80	$29.50
Nematode	$29.50	$27.20	$24.95	$24.95	$22.70

Table 2c testing fees effective July 1, 2001

Affected Groups: Exporters of planting stock, both seed and nursery stock, are the primary users of these services. Businesses or individuals importing plants under the USDA-APHIS Post-entry Quarantine Program also use services covered by this fee schedule.

The department billed approximately thirty-nine customers for these services in 2000, most of those being seed companies and nurseries. Based on the amount billed in 2000, the proposed fee increase will have more than a minor economic impact on only two companies, neither of which is a small business.

The volume of requested inspections and tests varies widely in any given year depending on export demand and the risk associated with an agricultural product. Utilizing WSDA services to obtain inspections and tests performed under this fee schedule is voluntary. USDA APHIS, universities and regulatory agencies in other states also provide these services.

Industry Outreach: The nursery advisory committee and the fruit tree advisory committee were notified of the proposed fee increases. All companies with active WSDA accounts for these services also received written notification.

Justification for Revision: Although some plant certification programs have separate fee schedules, services provided under this rule are important to planting stock certification programs and businesses requiring export certification. The phytosanitary requirements of importing countries must be met before agricultural products are exported. An inspection or a test to minimize the risk of introducing an exotic plant pest with the imported product often meets these requirements. Although most of these services are provided by regulatory agencies in other states it is often less expensive and more convenient for Washington businesses to have these services provided within the state.

This program provides phytosanitary services at cost. Increases in the cost of labor and materials in laboratory testing and field inspecting need to be offset by increases in revenue. If certification and other services were provided at a loss, the Plant Services Program would be required to operate at a loss, until, ultimately, it would be unable to continue to function.

An alternative would be to discontinue these services, requiring Washington exporters to use services provided by plant protection organizations in other states. This could put Washington exporters at a disadvantage as other agencies providing inspecting and laboratory testing services often have different priorities and may not provide needed services in a timely manner.

Conclusion: The proposed revisions of chapter 16-470 WAC will raise fees for inspection and plant pathology testing services approximately 5.6% in a two step process. The first increase of approximately 2.87% will take place on June 30, 2001 and a second increase of approximately 2.79% will become effective on July 1, 2001. The increases comply with the OFM fiscal growth factors for fiscal years 2001 and 2002.

The proposed fee increase will have no reporting, record-keeping or other compliance requirement for affected companies. The fee schedule applies to voluntary testing and inspection necessary for export or planting stock certification.

The businesses using these services are classified as SIC code 0139, which includes nurseries and seed growers. Based on the fees paid by the thirty-nine customers using these services in 2000, the proposed increase will not impose more than minor costs on small businesses. Therefore, an SBEIS is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption.

Hearing Location: Washington State Department of Agriculture, Natural Resources Building, 1111 Washington Street, 2nd Floor, Conference Room 271, Olympia, WA 98504-2560, on April 26, 2001, at 2:00 p.m.

Assistance for Persons with Disabilities: Contact Lou Jones by April 18, 2001, TDD (360) 902-1996 or (360) 902-1806.

Submit Written Comments to: Mary Toohey, Assistant Director, Laboratory Services Division, Washington State Department of Agriculture, P.O. Box 42560, Olympia, WA 98504-2560, e-mail mtoohey@agr.wa.gov, fax (360) 902-2094, by April 27, 2001.

Date of Intended Adoption: May 8, 2001.

March 21, 2001

Mary A. Martin Toohey

Assistant Director

OTS-4733.1

AMENDATORY SECTION(Amending WSR 99-22-076, filed 11/2/99, effective 12/3/99)

WAC 16-470-911   Schedule of fees and charges -- Applicable fees and charges -- Effective ((July 1, 1999)) June 30, 2001.  

(1) Hourly rate

(a) Business hours . . . . . . . . . . . . $((26.90)) 27.65

(b) Nonbusiness hours (see WAC 16-407-905)

. . . . . . . . . . . . $((34.40)) 35.35

(2) Laboratory diagnostic services, except as provided in subsection (3) or (4) of this section, are charged at the applicable hourly rate plus materials.

(3) Plant pathology laboratory diagnostic fees are as follows:

Identity Determi- nation	1 sample	5 samples	10 samples	50 samples	100+samples
virus (ELISA)	$((80.70)) 83.00 ea	$((59.15)) 60.80 ea	$((45.20)) 46.45 ea	$((17.20)) 17.65 ea	$ ((2.65)) 2.70 ea
bacteria	((35.60)) 36.60 ea	((34.40)) 35.35 ea	((32.25)) 33.15 ea	((31.20)) 32.05 ea	((31.20)) 32.05 ea
fungus	((37.65)) 38.70 ea	((32.25)) 33.15 ea	((31.20)) 32.05 ea	((30.10)) 30.95 ea	((27.90)) 28.70 ea
nematode	((27.90)) 28.70 ea	((25.80)) 26.50 ea	((23.65)) 24.30 ea	((23.65)) 24.30 ea	((21.50)) 22.10 ea

Note:

To receive volume rates, samples must be submitted as a unit and identification request must be for one specific virus, bacterium, fungus, or nematode.

(4) For large projects, the department reserves the right to provide service by written agreement at a single, negotiated cost or at a negotiated rate.

[Statutory Authority: Chapter 17.24 RCW. 99-22-076, 16-470-911, filed 11/2/99, effective 12/3/99; 99-12-035, 16-470-911, filed 5/26/99, effective 6/26/99.]

(a) Business hours . . . . . . . . . . . . $28.40

(b) Nonbusiness hours (see WAC 16-407-905) . . . . . . . . . . . . $36.30

(2) Laboratory diagnostic services, except as provided in subsection (3) or (4) of this section, are charged at the applicable hourly rate plus materials.

(3) Plant pathology laboratory diagnostic fees are as follows:

Identity Determi- nation	1 sample	5 samples	10 samples	50 samples	100+samples
virus (ELISA)	$85.30 ea	$62.45 ea	$47.70 ea	$18.10 ea	$2.75 ea
bacteria	37.60 ea	36.30 ea	34.05 ea	32.90 ea	32.90 ea
fungus	39.75 ea	34.05 ea	32.90 ea	31.80 ea	29.50 ea
nematode	29.50 ea	27.20 ea	24.95 ea	24.90 ea	22.70 ea

Note:

To receive volume rates, samples must be submitted as a unit and identification request must be for one specific virus, bacterium, fungus, or nematode.

(4) For large projects, the department reserves the right to provide service by written agreement at a single, negotiated cost or at a negotiated rate.

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(1) Site inspection and/or permit review and approval

. . . . . . . . . . . . $((53.80)) 55.30

(2) Subsequent inspections of post entry plant materials are provided at the applicable hourly rate.

(3) Post entry inspection fees may be waived for state universities, United States Department of Agriculture researchers, and other public entities.

[Statutory Authority: Chapter 17.24 RCW. 99-12-035, 16-470-916, filed 5/26/99, effective 6/26/99.]

(2) Subsequent inspections of post entry plant materials are provided at the applicable hourly rate.

(3) Post entry inspection fees may be waived for state universities, United States Department of Agriculture researchers, and other public entities.

[]

(2) Postage, special handling services and other miscellaneous costs exceeding five dollars are charged back at the actual cost.

(3) Certificates of inspection, phytosanitary certificates, and other official documents are provided subject to the charges and conditions established in chapter 16-401 WAC ((16-401-026)).

[Statutory Authority: Chapter 17.24 RCW. 99-12-035, 16-470-921, filed 5/26/99, effective 6/26/99.]

Washington State Code Reviser's Office