5098-S AMH AG H2793.1

SSB 5098 - H COMM AMD

By Committee on Agriculture & Rural Development

    Strike everything after the enacting clause and insert the following:

    "Sec. 1.  RCW 20.01.010 and 1989 c 354 s 37 are each amended to read as follows:

    As used in this title the terms defined in this section have the meanings indicated unless the context clearly requires otherwise.

    (1) "Director" means the director of agriculture or his or her duly authorized representative.

    (2) "Person" means any natural person, firm, partnership, exchange, association, trustee, receiver, corporation, and any member, officer, or employee thereof or assignee for the benefit of creditors.

    (3) "Agricultural product" means any unprocessed horticultural, vermicultural and its byproducts, viticultural, berry, poultry, poultry product, grain, bee, or other agricultural products, and includes mint or mint oil processed by or for the producer thereof and hay and straw baled or prepared for market in any manner or form and livestock.  ((When used in RCW 60.13.020, "agricultural product" means horticultural, viticultural, and berry products, hay and straw, and turf and forage seed and applies only when such products are delivered to a processor or conditioner in an unprocessed form.))

    (4) "Producer" means any person engaged in the business of growing or producing any agricultural product, whether as the owner of the products, or producing the products for others holding the title thereof.

    (5) "Consignor" means any producer, person, or his or her agent who sells, ships, or delivers to any commission merchant, dealer, cash buyer, or agent, any agricultural product for processing, handling, sale, or resale.

    (6) "Commission merchant" means any person who receives on consignment for sale or processing and sale from the consignor thereof any agricultural product for sale on commission on behalf of the consignor, or who accepts any farm product in trust from the consignor thereof for the purpose of resale, or who sells or offers for sale on commission any agricultural product, or who in any way handles for the account of or as an agent of the consignor thereof, any agricultural product.

    (7) "Dealer" means any person other than a cash buyer, as defined in subsection (10) of this section, who solicits, contracts for, or obtains from the consignor thereof for reselling or processing, title, possession, or control of any agricultural product, or who buys or agrees to buy any agricultural product from the consignor thereof for sale or processing and includes any person, other than one who acts solely as a producer, who retains title in an agricultural product and delivers it to a producer for further production or increase.  For the purposes of this chapter, the term dealer includes any person who purchases livestock on behalf of and for the account of another, or who purchases cattle in another state or country and imports these cattle into this state for resale.

    (8) "Limited dealer" means any person operating under the alternative bonding provision in RCW 20.01.211.

    (9) "Broker" means any person other than a commission merchant, dealer, or cash buyer who negotiates the purchase or sale of any agricultural product, but no broker may handle the agricultural products involved or proceeds of the sale.

    (10) "Cash buyer" means any person other than a commission merchant, dealer, or broker, who obtains from the consignor thereof for the purpose of resale or processing, title, possession, or control of any agricultural product or who contracts for the title, possession, or control of any agricultural product, or who buys or agrees to buy for resale any agricultural product by paying to the consignor at the time of obtaining possession or control of any agricultural product the full agreed price of the agricultural product, in coin or currency, lawful money of the United States.  However, a cashier's check, certified check, or bankdraft may be used for the payment. For the purposes of this subsection, "agricultural product," does not include hay, grain, straw, or livestock.

    (11) "Agent" means any person who, on behalf of any commission merchant, dealer, broker, or cash buyer, acts as liaison between a consignor and a principal, or receives, contracts for, or solicits any agricultural product from the consignor thereof or who negotiates the consignment or purchase of any agricultural product on behalf of any commission merchant, dealer, broker, or cash buyer and who transacts all or a portion of that business at any location other than at the principal place of business of his or her employer.  With the exception of an agent for a commission merchant or dealer handling horticultural products, an agent may operate only in the name of one principal and only to the account of that principal.

    (12) "Retail merchant" means any person operating from a bona fide or established place of business selling agricultural products twelve months of each year.

    (13) "Fixed or established place of business" for the purpose of this chapter means any permanent warehouse, building, or structure, at which necessary and appropriate equipment and fixtures are maintained for properly handling those agricultural products generally dealt in, and at which supplies of the agricultural products being usually transported are stored, offered for sale, sold, delivered, and generally dealt in ((in)) quantities reasonably adequate for and usually carried for the requirements of such a business, and that is recognized as a permanent business at such place, and carried on as such in good faith and not for the purpose of evading this chapter, and where specifically designated personnel are available to handle transactions concerning those agricultural products generally dealt in, which personnel are available during designated and appropriate hours to that business, and shall not mean a residence, barn, garage, tent, temporary stand or other temporary quarters, any railway car, or permanent quarters occupied pursuant to any temporary arrangement.

    (14) "Processor" means any person, firm, company, or other organization that purchases agricultural crops from a consignor and that cans, freezes, dries, dehydrates, cooks, presses, powders, or otherwise processes those crops in any manner whatsoever for eventual resale.

    (15) "Pooling contract" means any written agreement whereby a consignor delivers a horticultural product to a commission merchant under terms whereby the commission merchant may commingle the consignor's horticultural products for sale with others similarly agreeing, which must include all of the following:

    (a) A delivery receipt for the consignor that indicates the variety of horticultural product delivered, the number of containers, or the weight and tare thereof;

    (b) Horticultural products received for handling and sale in the fresh market shall be accounted for to the consignor with individual pack-out records that shall include variety, grade, size, and date of delivery.  Individual daily packing summaries shall be available within forty-eight hours after packing occurs.  However, platform inspection shall be acceptable by mutual contract agreement on small deliveries to determine variety, grade, size, and date of delivery;

    (c) Terms under which the commission merchant may use his or her judgment in regard to the sale of the pooled horticultural product;

    (d) The charges to be paid by the consignor as filed with the state of Washington;

    (e) A provision that the consignor shall be paid for his or her pool contribution when the pool is in the process of being marketed in direct proportion, not less than eighty percent of his or her interest less expenses directly incurred, prior liens, and other advances on the grower's crop unless otherwise mutually agreed upon between grower and commission merchant.

    (16) "Date of sale" means the date agricultural products are delivered to the person buying the products.

    (17) "Conditioner" means any person, firm, company, or other organization that receives turf, forage, or vegetable seeds from a consignor for drying or cleaning.

    (18) "Seed bailment contract" means any contract meeting the requirements of chapter 15.48 RCW.

    (19) "Proprietary seed" means any seed that is protected under the federal plant variety protection act.

    (20) "Licensed public weighmaster" means any person, licensed under the provisions of chapter 15.80 RCW, who weighs, measures, or counts any commodity or thing and issues therefor a signed certified statement, ticket, or memorandum of weight, measure, or count upon which the purchase or sale of any commodity or upon which the basic charge of payment for services rendered is based.

    (21) "Certified weight" means any signed certified statement or memorandum of weight, measure or count issued by a licensed public weighmaster in accordance with the provisions of chapter 15.80 RCW."

    "Sec. 2.  RCW 60.13.010 and 1987 c 148 s 1 are each amended to read as follows:

    As used in this chapter, the terms defined in this section have the meanings indicated unless the context clearly requires otherwise.

    (1) "Agricultural product((,))" means any unprocessed horticultural product, poultry or poultry product, livestock, hay, or straw, grain, or other unprocessed agricultural product.  When used in RCW 60.13.020, "agricultural product" means horticultural, aquacultural, viticultural, or berry products, hay or straw, milk or milk products, and turf or forage seed and applies only when such products are delivered to a processor or conditioner in an unprocessed form.

(2) "Conditioner," "consignor," "person," (("processor,")) and "producer" have the meanings defined in RCW 20.01.010.

    (((2))) (3) "Delivers" means that a producer completes the performance of all contractual obligations with reference to the transfer of actual or constructive possession or control of an agricultural product to a processor or conditioner or preparer, regardless of whether the processor or conditioner or preparer takes physical possession.

(4) "Preparer" means a person engaged in the business of feeding livestock or preparing livestock products for market.

    (((3))) (5) "Processor" means any person, firm, company, or other organization that purchases agricultural products from a consignor and that cans, freezes, dries, dehydrates, cooks, presses, powders, or otherwise processes those agricultural products in any manner whatsoever for eventual resale, or that purchases or markets milk from a dairy producer and is obligated to remit payment to such dairy producer directly.

(6) "Commercial fisherman" means a person licensed to fish commercially for or to take food fish or shellfish or steelhead legally caught pursuant to executive order, treaty right, or federal statute.

    (((4))) (7) "Fish" means food fish or shellfish or steelhead legally caught pursuant to executive order, treaty right, or federal statute."

    "NEW SECTION. Sec. 3.  A new section is added to chapter 60.13 RCW to read as follows:

    A person who controls or possesses amounts payable to the processor of agricultural products or the processor's assigns, which are properly encumbered by a processor's lien upon an account receivable shall not be obligated to pay a producer amounts to which the producer's processor lien has attached until that person receives written notice of such lien, nor shall that person be liable to the producer for any amounts paid out prior to receipt of the notice.  The notice required by this section shall contain the information described in RCW 60.13.040(2).  If requested by the person responsible for payment of such amounts, the producer must seasonably furnish reasonable proof that the processor lien continues to exist and unless such proof is so furnished, that person has no obligation to pay the producer.  A processor shall provide the name of the purchaser or marketing agent of the products to the producer upon request.

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

SSB 5098 - H COMM AMD

By Committee on Agriculture & Rural Development

    On page 1, line 1 of the title, after "liens;" strike the remainder of the title and insert "amending RCW 20.01.010 and 60.13.010; and adding a new section to chapter 60.13 RCW."