FINAL BILL REPORT

SHB 2000

                                  C 355 L 89

BYHouse Committee on Agriculture & Rural Development (originally sponsored by Representatives Rayburn, Chandler and Baugher)

Establishing fair practice standards for produce handlers and associations.

House Committe on Agriculture & Rural Development

Senate Committee on Agriculture

SYNOPSIS AS ENACTED

BACKGROUND:

The state's Consumer Protection Act declares unfair or deceptive acts or practices in the conduct of trade or commerce to be unlawful.  The act authorizes the Attorney General to bring actions in the name of the state to prevent persons from performing acts in violation of its provisions and authorizes the court to order the restoration of moneys or property.  The act also permits the court to award attorney's fees and damages in certain circumstances.  Civil penalties are also established for violations of certain provisions of the act.

SUMMARY:

Fair practices standards are established for negotiating the production or marketing of certain agricultural commodities.

Negotiating Units.  Requirements are established for handlers and accredited associations of producers of sweet corn or potatoes.  An association of producers may file an application with the Director of Agriculture requesting accreditation as the exclusive negotiating agent for its members within a negotiating unit with respect to the sweet corn or potatoes produced by its members.  The director must approve an application if the director finds that the association satisfies certain specified requirements.

Negotiations.  Negotiations between handlers and accredited associations of producers regarding the sale, compensation, or production of sweet corn or potatoes must begin at least 60 days before the normal planting date of the crop.  The required negotiations must conclude within 30 days of the normal planting date.  A serious, fair, and reasonable attempt to reach agreement is required.  However, neither party to a negotiation must agree to a proposal, make a concession, or enter into a contract. Nor is either party required to disclose proprietary business or financial records or information.  Negotiation is not required by a processor that only cleans, sorts, grades, and packages these products for sale without altering the natural condition of the products.  A cooperative association that contracts for crops from its own members is not required to negotiate.

Prohibited Acts.  It is unlawful for a handler to: coerce a producer regarding the producer's right to belong to or contract with an association; discriminate against any producer in price or other terms because of such a membership or contract or the producer's promotion of legislation on behalf of an association of producers; offer inducements to a producer for refusing or ceasing to belong to an association; make, knowingly, certain false reports regarding an association; refuse to negotiate with an accredited association; or engage in certain related activities.  It is unlawful for an association to: refuse to negotiate with a handler; coerce or intimidate a handler with respect to terminating a contract with an association or a member of the association; make, knowingly, certain false reports regarding an association or a handler; or engage in certain related activities.  The director must investigate complaints regarding alleged violations of these requirements.  If the director issues a complaint charging a violation, a hearing on the charge must be conducted as a contested case under the Administrative Procedure Act.

Any person injured by a violation of the act may sue to recover damages, reasonable attorneys' fees and costs within two years.  A person who violates the act may also be assessed a civil penalty by the director of not more than $5,000.  The director or an aggrieved producer or handler may seek injunctive relief regarding violations.

Other.  The director may establish requirements for records, reports, and other information.  The director must establish a 12 member advisory committee.

VOTES ON FINAL PASSAGE:

      House 93   5

      Senate    43     2 (Senate amended)

      House 96   1 (House concurred)

EFFECTIVE:May 12, 1989