HOUSE BILL REPORT

SSCR 8400

BYSenate Committee on Agriculture (originally sponsored by Senators Barr, Hansen, Lee, Gaspard and Benitz)

Creating a joint select committee on agricultural products clear title.

House Committe on Agriculture & Rural Development

Majority Report:  Do pass with amendment.  (11)

      Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Nealey, Ranking Republican Member; Baugher, Doty, Grant, Jesernig, McLean, H. Myers, Rasmussen and Youngsman.

House Staff:Kenneth Hirst (786-7105)

AS REPORTED BY COMMITTEE ON AGRICULTURE & RURAL DEVELOPMENT

MARCH 30, 1989

BACKGROUND:

Under the federal Food Security Act of 1985, the holder of a security interest (lien) against an agricultural commodity relinquishes the lien against the commodity when it is purchased by a third party buyer in the normal course of business, unless notice of the lien is provided or available to the buyer as specified in the act.  The lien holder must either provide the notice to the buyer or file the lien with a centralized, state, lien filing system which satisfies requirements established in the act and implementing rules.  The lien filing system available in this state does not satisfy those federal requirements.

SUMMARY:

RESOLUTION AS AMENDED:  A joint select committee on agricultural products clear title is created.  Among the purposes of the committee is resolving the agricultural products clear title issue in a manner which does not involve costs to the state and serves the interests of lien holders, product buyers, and creditors.

The committee is composed of:  two members each from the House and Senate Agriculture Committees, appointed by the Speaker of the House and the President of the Senate respectively; three members selected by holders of security interests in crops; three members selected by buyers of farm products; one member selected by the State Bar Association; and two members of the general public appointed jointly by the Speaker and the President.

The committee must report its findings and recommendations to the Legislature at the 1990 Regular Session and may formulate recommendations to the President and Congress of the United States.

$20,000 of the monies appropriated to the House and $20,000 of the monies appropriated to the Senate must be used solely for the expenses of the committee.

AMENDED RESOLUTION COMPARED TO SUBSTITUTE:  The wording of the substitute resolution regarding the dedication of appropriations to the Legislature, but not the amounts dedicated, is altered by the amended resolution.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Gayle McElroy, Washington Bankers Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Some small banks in the state have lost money because of the current lien notification system.

House Committee - Testimony Against:      None Presented.