S-3874               _______________________________________________

                                                   SENATE BILL NO. 6544

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

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

Read first time 1/17/90 and referred to Committee on  Agriculture.

AN ACT Relating to deduction of dues to an association of producers; and adding new sections to chapter 15.83 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     If any producer of agricultural products, as defined in RCW 15.83.010, within this state, voluntarily executes and causes to be delivered to a processor of farm products, either as a clause in a sales contract or other instrument in writing, a notice of assignment of dues to an association of producers directly representing the specific product involved, by which the processor is directed to deduct a sum from the price to be paid for such product and to pay the same over to such association as dues for the producer, the processor shall deduct from the price to be paid for any produce being sold by any such producer to any such processor, the amount authorized and pay it over to the association as assignee.

NEW SECTION. Sec. 2.     No provision which is inserted in any contract that is prepared by a processor which makes an assignment of the dues described in section 1 of this act ineffective is valid.

NEW SECTION. Sec. 3.     An assignment of dues may not exceed two percent of the total value of the product which is delivered by the producer to the processor.

NEW SECTION. Sec. 4.     Payment need not be made under any assignment of dues pursuant to section 1 of this act until the processor has available and under his or her control funds owing to the producer that are sufficient in amount for making the payment of the dues involved.  In the case of an annual product, payment need not be made until the end of the product year.

NEW SECTION. Sec. 5.     Any processor who pays any dues to an association of producers pursuant to the assignment of dues governed by sections 1 through 5 of this act shall not be liable for such sums upon any seed lien, farm laborer's lien, or any other lien or encumbrance which has priority by law upon the proceeds of the agricultural product.  Any lienholder who has priority upon the proceeds from such agricultural product whose lien remains unsatisfied shall have the right to receive all sums paid to any association pursuant to the assignment of dues.  Such association shall remit all dues paid pursuant to the assignment to the priority lienholder upon the receipt of notice and proof that a valid prior lien exists against such agricultural product.

NEW SECTION. Sec. 6.     Sections 1 through 5 of this act are each added to chapter 15.83 RCW.