H-4241              _______________________________________________

                                                   HOUSE BILL NO. 1941

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State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Kremen and Nealey

Read first time 1/24/86 and referred to Committee on Commerce & Labor.

AN ACT Relating to notification of preparer liens; and adding a new section to chapter 60.13 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 60.13 RCW to read as follows:

          An account debtor who purchases dairy products from a preparer shall not be obligated to pay a producer the amounts to which the producer's preparer lien has attached, until the account debtor receives written notice of the lien from the producer, and the account debtor shall not be liable to the producer for any amounts paid to the preparer prior to the receipt of the notice.  The notice required herein shall contain the information described in RCW 60.13.040(2).  If requested by the account debtor, the producer must seasonally furnish reasonable proof that the preparer lien continues to exist and unless such proof is so furnished, the account debtor has no obligation to pay the producer.  Preparers of dairy products shall provide the name of the purchaser of dairy products to the producer upon request.

          Failure to furnish the written notice as provided in this section shall not affect the status of the lien established under this chapter in regard to the relationship with other creditors.