HB 1553
SignedHouse
Dairy inspection program
Extending the dairy inspection program until June 30, 2031.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill extends Washington’s dairy inspection program and its associated fee structure until June 30, 2031, ensuring continued funding for milk safety inspections. It keeps the current assessment cap of $0.54 per 100 pounds of milk, with exemptions for small operators and enforcement tools for nonpayment.
- Extends the dairy inspection program from June 30, 2025, to June 30, 2031.
- Maintains the current assessment rate of up to $0.54 per 100 pounds of milk processed in Washington.
- Allows the Washington State Department of Agriculture to set the exact assessment amount (with help from the state general fund) to cover inspection costs.
- Requires assessments to be paid by the first milk processing plant that receives the milk, including plants that use their own milk.
- Exempts milk processing plants whose monthly assessment is under $20 from paying that month’s fee.
- Creates a lien on delinquent assessments, enforceable like unpaid taxes, if operators fail to pay.
- Requires collected funds to go into the dairy inspection account within the agricultural local fund and be used only for dairy inspection services.
Who is affected
- Dairy producers and milk processing plant operators — Dairy farms and processing plants that produce or handle milk in Washington are required to pay an assessment (a fee based on milk volume) to fund dairy inspection services, unless their monthly assessment is under $20.
- Washington consumers — Consumers benefit from continued oversight of dairy safety and quality, as the inspection program helps ensure milk and dairy products meet state and federal health standards.
- Washington State Department of Agriculture — The Washington State Department of Agriculture manages the program, collects assessments, and conducts inspections to enforce dairy safety rules.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Continued funding ensures consistent, science-based milk safety inspections across Washington, protecting consumers from foodborne illness and ensuring dairy products meet federal and state health standards — this is a core public health function with broad, measurable benefits for all residents.
Public SafetyPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: '...support an inspection program to maintain compliance with the provisions of the pasteurized milk ordinance of the national conference on interstate milk shipment.'The dedicated funding account ensures transparency and accountability — inspection fees are ring-fenced and used solely for public safety purposes, reducing risk of underfunding or misallocation and reinforcing trust in dairy product safety.
Public SafetyPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'All moneys collected under this section... shall be used only to provide inspection services to the dairy industry.'The $20 monthly exemption provides temporary relief for micro-operations (e.g., small farm creameries, seasonal producers), reducing administrative and cash-flow burdens for low-volume producers who might otherwise be priced out of the market.
Business & EmploymentPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'Milk processing plants whose monthly assessment for receipt of milk totals less than $20 in any given month are exempted from paying this assessment for that month.'By extending the program to 2031, the bill provides long-term certainty for the Washington State Department of Agriculture’s dairy inspection program, enabling stable staffing, planning, and resource allocation — this improves regulatory consistency and reduces administrative turnover costs.
Local GovernmentPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'The director shall deposit the funds into the dairy inspection account... The funds shall be used only to provide inspection services to the dairy industry.'The sunset date ensures periodic legislative review, preventing permanent, unreviewable fee structures — while not a direct benefit, this promotes accountability and allows future legislatures to adjust the program if market or public health conditions change.
Local GovernmentPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'This section expires June 30, 2031.'
Potential Concerns (5)
The bill maintains a user-fee model for dairy safety inspections, but the $20 monthly exemption means small and mid-sized processors pay less while larger operations shoulder more of the cost burden — however, since the program is fully funded by assessments (not general fund), the public safety benefit remains stable and not contingent on broader tax revenue.
Public SafetyRef: Sec. 1, RCW 15.36.551 (as amended), line: 'All moneys collected under this section shall be paid to the director... The funds shall be used only to provide inspection services to the dairy industry.'The $20 monthly exemption provides modest cost relief to very small processors (e.g., small creameries, farm-based bottlers), but because the exemption is based on monthly volume, it may disproportionately benefit larger operations that can smooth production across months or avoid hitting the threshold — and it does not reduce the overall fee burden for most commercial dairy farms or mid-sized processors.
Business & EmploymentLean peopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'Milk processing plants whose monthly assessment for receipt of milk totals less than $20 in any given month are exempted from paying this assessment for that month.'The bill strengthens enforcement by creating a tax-like lien on delinquent assessments, which increases financial risk for noncompliant dairy processors — this protects public funds but may pressure small operators with cash-flow issues, potentially increasing compliance costs and legal exposure for marginal operations.
Business & EmploymentPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'If the operator of a milk processing plant fails to remit any assessments, that sum shall be a lien on any property owned by him or her... collected in the manner... as prescribed for the collection of delinquent taxes under chapters 84.60 and 84.64 RCW.'The bill includes language allowing for general fund support, but the fiscal impact statement confirms the program is fully self-sustaining via assessments — this provision is a contingency, not a new fiscal commitment, so it has negligible current impact on state or local budgets.
Local GovernmentRef: Sec. 1, RCW 15.36.551 (as amended), line: 'The director shall determine, by rule, an assessment, that with contribution from the general fund, will support an inspection program...' (note: fiscal impact states program is self-sustaining, and no general fund contribution is currently used — this clause is a contingency, not active funding).The assessment is effectively a per-unit tax on milk processing, which is passed through the supply chain — dairy farms and processors absorb the cost, and while small operators benefit from the $20 exemption, the fee is regressive in practice: low-volume farms (often smaller, family-run) pay a higher effective rate per unit than large industrial dairies, increasing their relative cost burden.
Business & EmploymentPeopleRef: Sec. 1, RCW 15.36.551 (as amended), line: 'There is levied on all milk processed in this state an assessment not to exceed fifty-four one-hundredths of one cent per hundredweight.'
Who Is Most Affected
Large dairy farms and processing plants benefit from stable, predictable inspection costs and reduced regulatory uncertainty; however, they bear the majority of the assessment due to high volume — the $20 exemption does not help them, and they may face increased compliance costs due to lien enforcement.
Small and micro-operations (e.g., farmstead creameries, seasonal bottlers) benefit from the $20 monthly exemption and reduced administrative burden, but may face disproportionate effective rates per unit and risk penalties if they occasionally exceed the threshold.
All Washington consumers benefit from continued food safety oversight of dairy products, reducing risk of illness and ensuring quality — this is a universal, non-discretionary public good with no direct cost to individuals.
The Washington State Department of Agriculture gains long-term program stability and funding certainty, enabling consistent enforcement and reducing budgetary uncertainty — but the agency’s authority remains limited to inspection, not broader dairy policy.
Dairy cooperatives and regional distribution networks benefit from stable supply chain safety standards and reduced liability risk, but may pass assessment costs upstream to member farms, increasing pressure on small producers.