71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 3964
Sponsored by Representative KROPF
CHAPTER ................
AN ACT
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
Enrolled House Bill 3964 (HB 3964-INTRO) Page 1
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. + }
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Passed by House April 27, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 11, 2001
...........................................................
President of Senate
Enrolled House Bill 3964 (HB 3964-INTRO) Page 2
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 3964 (HB 3964-INTRO) Page 3