SENATE BILL REPORT

SB 5838

BYSenators 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 3, 1989

AS REPORTED BY COMMITTEE ON AGRICULTURE, FEBRUARY 24, 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.

Concern exists about the priority of the agister lien and the ability to enforce the lien once the cattle leave the feedlot.

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

SUMMARY:

The lien for feeding costs is to have priority over other liens regardless of the date of attachment except for liens for labor and taxes.

A person who holds a lien is required to provide written notice to buyer of the existence of a lien.

EFFECT OF PROPOSED SUBSTITUTE:

Language is added to clarify how prior written notice of the existence of the lien is to be given to the buyer, or in the case of commission sales, to the seller.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

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