HOUSE BILL REPORT

SHB 60

BYHouse Committee on Natural Resources (originally sponsored by Representatives Haugen, Basich, S. Wilson and P. King) 

Establishing processor liens for commercial fishermen.

House Committe on Natural Resources

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (17)

     Signed by Representatives Sutherland, Chair; K. Wilson, Vice Chair; Amondson, Basich, Beck, Belcher, Bumgarner, Cole, Fuhrman, Hargrove, Haugen, R. King, Meyers, Sayan, C. Smith, Spanel and S. Wilson.

House Staff:Bill Koss (786-7129)

AS PASSED HOUSE MARCH 2, 1987

BACKGROUND:

Agricultural producers frequently sell their products to a processor who pays the producer at a later date.  The agricultural producers have protection ensuring they will receive payment through their use of a "processor's lien."  The processor's lien consists of a first priority lien against the processor for the price or value of the product delivered.  The processor's lien applies to certain unprocessed agricultural products. The lien attaches on the date the product is delivered and continues without filing until 20 days after payment is due.

If payment for the product is not made by the date it is due, a producer may file a lien statement with the Department of Licensing. If a lien statement is filed within the 20 day period after the payment was originally due, the lien continues its priority over all other liens except those for taxes or labor performed before the filing of the lien.  If it is not filed within 20 days, the lien is subordinate to certain security interests and liens.

A processor's lien terminates 6 months after, and a preparer lien terminates 50 days after the date of attachment or filing, unless a suit to foreclose it is initiated before that date.

If a producer files a lien statement and subsequently receives full payment, the producer shall file a statement with the Department of Licensing stating that the lien has been discharged.  If the producer fails to file the statement, the producer is liable for a $100 penalty and actual damages caused by the failure to file the statement.

Producers of agricultural products may file a producers lien but the law does not extend to commercial fishermen.

SUMMARY:

Commercial fishermen are given authority to exercise a processor's lien when they deliver fish to a fish processor.  This includes legally caught steelhead.  In the event the processor does not pay the fisherman within 20 days after the date payment was due, the fisherman may file a statement to that effect with the Department of Licensing.  A processor lien filed within 20 days after the due date of payment from the processor to the producer represents a first priority lien over all other liens and security interests, regardless of when the other lien or security interests were filed.

The processor's lien terminates six months after either the date of filing or the date of attachment, whichever is later unless a suit to foreclose the lien has been filed.

Fiscal Note:    No Impact.

House Committee ‑ Testified For:     Steve Arbaugh, Puget Sound Gillnetters.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Fishermen want to have the same security currently given to producers of agricultural products.

House Committee - Testimony Against: None Presented.