H-3067.4  _______________________________________________

                          HOUSE BILL 2775

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Clements, Armstrong, Linville and Grant

Read first time 01/28/2002.  Referred to Committee on Agriculture & Ecology.

Prescribing conditions for extending the date by which payment must be made for sales of fresh fruit.

    AN ACT Relating to sales of fruit; and amending RCW 20.01.430 and 20.01.480.

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

    Sec. 1.  RCW 20.01.430 and 1982 c 20 s 3 are each amended to read as follows:

(1) Every commission merchant shall remit to the consignor of any agricultural product the full price for which such agricultural product was sold within thirty days of the date of sale, or in the case of livestock within seven days of the date of sale unless otherwise mutually agreed between grower and commission merchant.  The remittance to the consignor shall include all collections, overcharges, and damages, less the agreed commission and other charges and advances, and a complete account of the sale.  Where payment for livestock is made by mail, payment is timely if mailed within seven days of the date of sale unless otherwise specified in an agreement between the producer and the dealer in livestock.  This subsection (1) does not apply to the sale of fresh fruit by a commission merchant for a consignor.

(2)(a) When a commission merchant sells fresh fruit for a consignor, the full price the fruit is sold for is due and payable within thirty days of the date the fruit is shipped by the commission merchant.  The commission merchant shall bill the purchaser in a timely manner so that the thirty-day deadline can be met.

(b) The commission merchant shall charge the purchaser interest at an annual rate of eight percent on any portion of the full price that is not paid by the purchaser for each day after the thirty-day deadline specified in (a) of this subsection that the full price remains unpaid.  Any interest assessed by the commission merchant under this section is payable by the purchaser to the commission merchant and by the commission merchant to the consignor.  Not later than the last day of each thirty-day period after the fruit is shipped, the commission merchant shall pay the consignor all portions of the sale price and interest received by the commission merchant for the sale during that thirty-day period until the amounts owed the consignor, including interest, are fully paid.

(c) Once fruit is shipped under (a) of this subsection, the amounts owed the consignor for the sale, including any interest, must not be adjusted downward by the purchaser, the commission merchant, or any other person for any reason whatsoever.

(d) It is a violation of this chapter for any commission merchant to benefit financially, benefit through any improvement in the merchant's marketing ability, or benefit in any other material way by extending beyond the thirty-day deadline specified in (a) of this subsection the date by which the amounts owed a consignor for a sale are paid by the commission merchant to the consignor.

    Sec. 2.  RCW 20.01.480 and 1977 ex.s. c 304 s 13 are each amended to read as follows:

(1) When a violation has occurred which results in improper payment or nonpayment and a claim is made to the department and the payment is secured through the actions of the department, the charges made to the consignor for the action of the department in the matter will depend upon the delay of reporting after such improper payment or nonpayment would normally become obvious to the consignor as follows:

    (((1))) (a) When reported within thirty days, no charge.

    (((2))) (b) When reported thirty days to one hundred eighty days, five percent.

    (((3))) (c) When reported after one hundred eighty days, ten percent.

(2) The charges specified in subsection (1) of this section are in addition to the eight percent interest requirement specified in RCW 20.01.430(2).

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