SENATE BILL REPORT

SB 6432

BYSenators Hansen, Barr, Halsan, Benitz and Bauer

Amending provisions for agricultural livestock liens.

Senate Committee on Agriculture

Senate Hearing Date(s):January 26, 1988

Majority Report:  That Substitute Senate Bill No. 6432 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Hansen.

Senate Staff:Tom McDonald (786-7404)

                  January 26, 1988

AS REPORTED BY COMMITTEE ON AGRICULTURE, JANUARY 26, 1988

BACKGROUND:

Chapter 60.13 RCW sets forth the definitions and priorities of liens on processors and preparers of agricultural products.  A producer of agricultural products has a "processor lien" when the producer delivers those goods to "a processor."  A producer has a "preparer lien" when the producer delivers grain, hay or straw to a livestock feedlot operator ("a preparer").  The "processor lien" and the "preparer lien" attach to the delivered products and to the processors' or preparers' accounts receivable.  The liens have priority over all other liens and security interests except for previously filed tax and labor liens.

Although the processors' and preparers' liens protect most producers of agricultural products, the feedlot owner who has invested time and money into livestock, has no equivalent statutory lien to protect the owner when the livestock are delivered to a slaughtering establishment.  A feedlot owner only has an agister lien on livestock which remain in the operator's possession.

SUMMARY:

Any person to whom livestock are entrusted for caring or feeding has a lien upon said animals and upon the proceeds or accounts receivable from such animals.  The lien shall have priority over all other liens and security interests, except for previously attached tax and labor liens.

EFFECT OF PROPOSED SUBSTITUTE:

Correction of typographical error clarifying that the feedlot operator's lien is subordinate to previously attached tax and labor liens.  The archaic language allowing tavernkeeper to have an agister lien is stricken.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Marlyta Deck, Washington State Cattlemen's Association; Mike Lundgren, L&M Feeders, Inc.