SENATE BILL REPORT

ESSB 5838

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

Revising agricultural livestock liens.

Senate Committee on Agriculture

Senate Hearing Date(s):February 24, 1989

Majority Report:  That Substitute Senate Bill No. 5838 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Barr, Chairman; Bailey, Gaspard, Hansen, Madsen.

Senate Staff:Bob Lee (786-7404)

                  March 10, 1989

AS PASSED SENATE, MARCH 7, 1989

BACKGROUND:

Livestock feedlots may feed cattle owned by others on a custom basis.  These cattle are fed, removed from the feedlot and are often sold prior to payment to the feedlot operator for the cost of feeding and associated costs.

The current lien covers only the time the livestock are in the possession of the lienholder.  Once the animals leave possession of the person providing feed or care, the lien expires.

The federal Food Security Act of 1985 requires that holders of security interests file direct notice of the existence of liens with buyers.

SUMMARY:

A lien is created upon the proceeds or accounts receivable from the sale of livestock.

A person who holds a lien is required to provide written notice to the buyer, or in the case of commission sales, to the seller, of the existence of a lien.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Marlyta Deck, Washington Cattlemen's Association; Gaile McElroy, Washington Bankers' Association