SENATE BILL REPORT

SB 6544

BYSenators Hansen, Rasmussen, Barr, Madsen, Moore, Talmadge, Vognild, Bauer, Warnke, Wojahn, Gaspard, Stratton and Bailey

Adding provisions regarding deduction of dues to an association of producers.

Senate Committee on Agriculture

Senate Hearing Date(s):January 26, 1990

Senate Staff:Stephen Nelsen (786-7464)

AS OF JANUARY 24, 1990

BACKGROUND:

Prior to 1989, it was practice for some processors to deduct and remit dues to an association of producers on behalf of individual producers who requested such action.  In 1989, the Legislature passed the Agricultural Marketing and Fair Practices Act and the processors ceased all activities involving dues.

SUMMARY:

Whenever a producer of sweet corn and potatoes voluntarily executes and delivers to a processor a notice of assignment of dues to an association of producers, the processor shall deduct from the proceeds to be paid to the producer the amount authorized and pay it over to the association.

No provision which is in any contract prepared by a processor which makes a voluntary assignment of dues ineffective is valid.  The assignment of dues may not exceed 2 percent of the total value of the product which is delivered by the producer to the processor.  The payment by the processor need not be made until the processor has funds available owing to the producer that are sufficient to make the payment of dues; and, in the case of an annual product, the payment need not be made until the end of the product year.

Processors who pay dues to an association of producers shall not be liable for such sums upon any lien which has priority by law on the proceeds of the product, but the lienholder whose lien remains unsatisfied may recover from the association all dues paid by proving that they have a valid prior lien.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested