SENATE 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.

Senate Committee on Agriculture

Senate Hearing Date(s):January 20, 1989; February 14, 1989

Majority Report:     That Substitute Senate Concurrent Resolution No. 8400 be substituted therefor, and substitute concurrent resolution do pass.

     Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Madsen, Newhouse.

Senate Staff:Bob Lee (786-7404)

                March 20, 1989

AS PASSED SENATE, MARCH 13, 1989

BACKGROUND:

The 1985 federal Food Security Act modified the requirements for filing security interests on agricultural products.  This federal law requires that either the holder provide prior direct notice of the existence of a security interest, to the buyers of agricultural products or the state government must have a system of filing security interests which meet requirements of federal law.

Some states have adopted a central filing system which meets federal requirements and other states continue to rely on direct notice.  A procedure which is acceptable to the major parties in this state has yet to be formulated.

SUMMARY:

A Joint Select Committee on Agricultural Products Clear Title is created.  It is to develop recommendations for establishing a procedure for notifying buyers of agricultural products of existing security interests.  The committee may formulate recommendations to Congress and report findings and recommendations to the state Legislature prior to the 1990 session.

The committee consists of 13 members including two members each from the Senate Committee on Agriculture and the House Committee on Agriculture and Rural Development, three members selected by the holders of security interests in crops, three members selected by the buyers of farm products, one member of the State Bar Association, and two members of the general public.

The amount of money appropriated to the Legislature to be used for expenses of the committee is $40,000.

Appropriation:  $40,000 of the monies appropriated to the Legislature may be used for the expenses of the committee.

Revenue:   none

Fiscal Note:    none requested

Appointments by Legislature Required: Two members of the Senate Committee on Agriculture, one representing the majority party and one representing the minority party, appointed by the President of the Senate; two members of the House Committee on Agriculture and Rural Development, one representing the majority party and one representing the minority party, appointed by the Speaker of the House; two members of the general public, appointed jointly by the President of the Senate and Speaker of the House.

Senate Committee - Testified:   No one