Chapter 265 Oregon Laws 2001
AN ACT
HB 3964
Relating to agricultural
seed; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
As used in this section and section 2 of
this 2001 Act:
(1) “Final payment date”
means a date specified in a seed production or purchase contract by which the
wholesale seed dealer must complete payment to the seed grower or, if a date is
not specified in the contract, May 1 of the year following production and
harvesting of the grass or clover seed.
(2) “Seed delivery”
means the date on which the seed grower delivers grass or clover seed to the
wholesale seed dealer pursuant to a notice from the dealer.
(3) “Seed production or
purchase contract” means a written agreement that must include:
(a) The estimated date
for seed delivery;
(b) The terms and
estimated dates for the wholesale seed dealer to pay the seed grower;
(c) The number of acres
of grass or clover seed to be grown; and
(d) The species,
cultivars and quality standards of the grass or clover seed to be produced or
purchased.
SECTION 2.
(1) A seed production or purchase
contract must require the wholesale seed dealer to make payment to the seed
grower within 30 days after seed delivery. Upon written mutual agreement of the
seed grower and the wholesale seed dealer, the grower may extend the period
available for the dealer to make payment.
(2) If a licensed
wholesale seed dealer fails to pay a seed grower as required pursuant to
subsection (1) of this section, the grower may notify the State Department of
Agriculture. Upon notification by a grower, the department shall determine
whether payment has been made in accordance with terms of the contract. If the
department determines that payment has not been made, the department shall
notify the wholesale seed dealer in writing that the dealer has 30 days to pay
the seed grower all delinquent amounts plus interest on each delinquent amount
at the rate of one percent per month simple interest from the final payment
date for that delinquent amount.
(3) A seed production or
purchase contract may not vary the terms of the remedy provided by subsection
(2) of this section. A wholesale seed dealer may appeal the notice given by the
department under subsection (2) of this section as provided in ORS 183.310 to
183.550. Subsection (2) of this section does not prevent a seed grower from
filing a notice of lien against a wholesale seed dealer.
(4) If a wholesale seed
dealer fails to make payment as required by a notice given by the department
under subsection (2) of this section, the department shall suspend the license
of the dealer until the dealer demonstrates to the satisfaction of the department
that the dealer is current on all payments due to seed growers.
(5) A wholesale seed
dealer who fails to make payment as required by a notice given by the
department under subsection (2) of this section is considered to have
authorized the seed grower to sell any seed from the contract that is still in
the possession of the grower and to use the variety as provided under the
federal Plant Variety Protection Act, 7 U.S.C. 2541(b), subject to a right of
first refusal by the owner of a protected variety. This subsection does not
prevent a wholesale seed dealer from giving consent to the seed grower by other
means and does not supersede the terms of a consent given by other means.
SECTION 3.
Section 2 of this 2001 Act applies to
seed production or purchase contracts entered into on or after the effective
date of this 2001 Act.
SECTION 4.
This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2001 Act takes effect on its passage.
Approved by the Governor May
30, 2001
Filed in the office of
Secretary of State May 30, 2001
Effective date May 30, 2001
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