SENATE BILL REPORT

SB 5781

BYSenators Barr, Hansen, Benitz, Bauer, Bailey and Anderson

Regulating agricultural, vegetable, and flower seeds.

Senate Committee on Agriculture

Senate Hearing Date(s):February 14, 1989

Senate Staff:Bob Lee (786-7404)

AS OF FEBRUARY 14, 1989

BACKGROUND:

In order to increase the level of uniformity and consistency of our law with other states to facilitate interstate commerce, changes to the existing state seed law are proposed.

Under current law buyers of seed who allege to have been damaged may file a civil action in court or, with the consent of other parties, may voluntarily enter into binding arbitration under the general laws of the state.

Currently, persons who violate the provisions of the seed act are subject to criminal prosecution and criminal penalties.  The first conviction is classified as a misdemeanor which carries a jail term of up to 90 days and/or a fine of $1,000.  A second conviction within a five year period is classified as a gross misdemeanor and carries a jail term of up to one year and a fine of up to $5,000, or both.

There exist several definitions in the seed act including prohibited noxious weeds and restricted noxious weeds.  The Department of Agriculture is authorized and has adopted a list of prohibited and restricted noxious weeds.  The sale of seed containing prohibited noxious weeds would, by regulation, be deemed to be mislabeled and thus are illegal.  The sale of seed containing restricted noxious weeds of less than 2 percent are legal.

SUMMARY:

Damage claims of under $2,000 between a buyer and seller of seed will continue to be filed in either district or small claims court.

A buyer of seed who alleges that he has sustained damages of over $2,000 is, as a prerequisite to other legal action, required to enter into arbitration with the seller.  Two choices exist:  both the buyer and seller can voluntarily agree to binding arbitration which will be conducted by a single court-appointed arbitrator under the general arbitration statutes; or the buyer must submit a request for mandatory nonbinding arbitration which would be conducted pursuant to the procedures established in this bill.  Arbitration would be conducted by a committee of five arbitrators appointed by the Director of Agriculture.  The arbitration committee members would receive no compensation but would be reimbursed for travel expenses which would be split equally between the buyer and seller.

The department will adopt rules to establish filing fees to cover the administrative costs of arbitration, to include providing a secretary to the arbitration committee and other costs associated with processing a complaint.  A filing fee must be paid by the buyer at the time of filing the arbitration request.  The filing fee may be recovered from the seller upon recommendation of the arbitration committee.

A violation of the seed act is decriminalized.  Violations of the seed act would be considered class 1 civil infractions which carry a fine not to exceed $250. 

Definitions contained in the existing seed act are restated including definitions for prohibited noxious weeds and restricted noxious weeds.  The Department of Agriculture continues to have authority to develop a list of prohibited and restricted noxious weeds.  There is no specific limit on the amount of weeds on the restricted list that a lot of seed may contain.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 10, 1989

Effective Date:January 1, 1990