SENATE BILL REPORT

                                    SB 5098

         AS REPORTED BY COMMITTEE ON AGRICULTURE & NATURAL RESOURCES,

                               FEBRUARY 8, 1991

Brief Description:  Extending the coverage of processor liens.

SPONSORS:Senators Barr, Hansen, Newhouse, Gaspard, Bailey, Conner, Amondson, Bauer and L. Smith.

SENATE COMMITTEE ON AGRICULTURE & WATER RESOURCES

Majority Report:  That Substitute Senate Bill No. 5098 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Conner, Gaspard, Hansen, and Newhouse. 

Staff:  John Stuhlmiller (786‑7446)

Hearing Dates:January 29, 1991; February 8, 1991

BACKGROUND:

The list of agricultural commodities covered by the processor lien statute does not specifically include dairy products.  The current legal matter involving dairy producers and the Foremost Dairy has raised the issue of whether dairy products are covered by the statute.

SUMMARY:

The definition of agricultural products for purposes of the processor lien is modified to specifically include dairy products.

EFFECT OF PROPOSED SUBSTITUTE:

The definition of agricultural products, for purposes of the processor lien, is moved to the processor lien statute and is broadened to include aquacultural products.  Also, language is added which eliminates the possibility of a processor paying twice for the same raw products.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

The bill clarifies that milk is covered by the processor lien and is needed.

TESTIMONY AGAINST:  None

TESTIFIED:  Trevor Sandison, Washington Bankers Association (pro); Jim Zimmerman, Trout Lodge, Washington Fish Growers Association