Turfgrass seed contracts

AN ACT Relating to the payment of turfgrass seed contracts; 1
amending RCW 20.01.465; and reenacting and amending RCW 20.01.010.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 20.01.010 and 2011 c 336 s 568 and 2011 c 103 s 39 4
are each reenacted and amended to read as follows: 5
As used in this title the terms defined in this section have the 6
meanings indicated unless the context clearly requires otherwise.7
(1) "Agent" means any person who, on behalf of any commission 8
merchant, dealer, broker, or cash buyer, acts as liaison between a 9
consignor and a principal, or receives, contracts for, or solicits 10
any agricultural product from the consignor thereof or who negotiates 11
the consignment or purchase of any agricultural product on behalf of 12
any commission merchant, dealer, broker, or cash buyer and who 13
transacts all or a portion of that business at any location other 14
than at the principal place of business of his or her employer. With 15
the exception of an agent for a commission merchant or dealer 16
handling horticultural products, an agent may operate only in the 17
name of one principal and only to the account of that principal.18
(2) "Agricultural product" means any unprocessed horticultural, 19
vermicultural and its by-products, viticultural, berry, poultry, 20
poultry product, grain, bee, or other agricultural products. 21
S-0354.1
SENATE BILL 5074
State of Washington 69th Legislature 2025 Regular Session
By Senators Boehnke, Chapman, and Krishnadasan
Prefiled 12/17/24. Read first time 01/13/25. Referred to Committee
on Agriculture & Natural Resources.
p. 1 SB 5074
"Agricultural product" also includes (a) mint or mint oil processed 1
by or for the producer thereof, hay and straw baled or prepared for 2
market in any manner or form and livestock; and (b) agricultural 3
seed, flower seed, vegetable seed, other crop seed, and seeds, as 4
defined in chapter 15.49 RCW, however, any disputes regarding 5
responsibilities for seed clean out are governed exclusively by 6
contracts between the producers of the seed and conditioners or 7
processors of the seed. 8
(3) "Broker" means any person other than a commission merchant, 9
dealer, or cash buyer who negotiates the purchase or sale of any 10
agricultural product, but no broker may handle the agricultural 11
products involved or proceeds of the sale. 12
(4) "Cash buyer" means any person other than a commission 13
merchant, dealer, or broker, who obtains from the consignor thereof 14
for the purpose of resale or processing, title, possession, or 15
control of any agricultural product or who contracts for the title, 16
possession, or control of any agricultural product, or who buys or 17
agrees to buy for resale any agricultural product by paying to the 18
consignor at the time of obtaining possession or control of any 19
agricultural product the full agreed price of the agricultural 20
product, in coin or currency. However, a cashier's check, certified 21
check, credit card, or bankdraft may be used for the payment. For the 22
purposes of this subsection, "agricultural product," does not include 23
hay, grain, straw, or livestock. 24
(5) "Certified weight" means any signed certified statement or 25
memorandum of weight, measure or count issued by a licensed public 26
weighmaster in accordance with the provisions of chapter 15.80 RCW.27
(6) "Commission merchant" means any person who receives on 28
consignment for sale or processing and sale from the consignor 29
thereof any agricultural product for sale on commission on behalf of 30
the consignor, or who accepts any farm product in trust from the 31
consignor thereof for the purpose of resale, or who sells or offers 32
for sale on commission any agricultural product, or who in any way 33
handles for the account of or as an agent of the consignor thereof, 34
any agricultural product. 35
(7) "Conditioner" means any person, firm, company, or other 36
organization that receives seeds from a consignor for drying or 37
cleaning. 38
(8) "Consignor" means any producer, person, or his or her agent 39
who sells, ships, or delivers to any commission merchant, dealer, 40
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cash buyer, or agent, any agricultural product for processing, 1
handling, sale, or resale. 2
(9) "Date of sale" means the date agricultural products are 3
delivered to the person buying the products. 4
(10) "Dealer" means any person other than a cash buyer, as 5
defined in subsection (4) of this section, who solicits, contracts 6
for, or obtains from the consignor thereof for reselling or 7
processing, title, possession, or control of any agricultural 8
product, or who buys or agrees to buy any agricultural product from 9
the consignor thereof for sale or processing and includes any person, 10
other than one who acts solely as a producer, who retains title in an 11
agricultural product and delivers it to a producer for further 12
production or increase. For the purposes of this chapter, the term 13
dealer includes any person who purchases livestock on behalf of and 14
for the account of another, or who purchases cattle in another state 15
or country and imports these cattle into this state for resale.16
(11) "Director" means the director of agriculture or a duly 17
authorized representative. 18
(12) "Fixed or established place of business" for the purpose of 19
this chapter means any permanent warehouse, building, or structure, 20
at which necessary and appropriate equipment and fixtures are 21
maintained for properly handling those agricultural products 22
generally dealt in, and at which supplies of the agricultural 23
products being usually transported are stored, offered for sale, 24
sold, delivered, and generally dealt with in quantities reasonably 25
adequate for and usually carried for the requirements of such a 26
business, and that is recognized as a permanent business at such 27
place, and carried on as such in good faith and not for the purpose 28
of evading this chapter, and where specifically designated personnel 29
are available to handle transactions concerning those agricultural 30
products generally dealt in, which personnel are available during 31
designated and appropriate hours to that business, and shall not mean 32
a residence, barn, garage, tent, temporary stand or other temporary 33
quarters, any railway car, or permanent quarters occupied pursuant to 34
any temporary arrangement. 35
(13) "Licensed public weighmaster" means any person, licensed 36
under the provisions of chapter 15.80 RCW, who weighs, measures, or 37
counts any commodity or thing and issues therefor a signed certified 38
statement, ticket, or memorandum of weight, measure, or count upon 39
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which the purchase or sale of any commodity or upon which the basic 1
charge of payment for services rendered is based. 2
(14) "Licensee" means any person or business licensed under this 3
chapter as a commission merchant, dealer, limited dealer, broker, 4
cash buyer, or agent. 5
(15) "Limited dealer" means any person who buys, agrees to buy, 6
or pays for the production or increase of any agricultural product by 7
paying to the consignor at the time of obtaining possession or 8
control of any agricultural product the full agreed price of the 9
agricultural product and who operates under the alternative bonding 10
provision in RCW 20.01.211. 11
(16) "Person" means any natural person, firm, partnership, 12
exchange, association, trustee, receiver, corporation, and any 13
member, officer, or employee thereof or assignee for the benefit of 14
creditors. 15
(17) "Pooling contract" means any written agreement whereby a 16
consignor delivers a horticultural product to a commission merchant 17
under terms whereby the commission merchant may commingle the 18
consignor's horticultural products for sale with others similarly 19
agreeing, which must include all of the following:20
(a) A delivery receipt for the consignor that indicates the 21
variety of horticultural product delivered, the number of containers, 22
or the weight and tare thereof; 23
(b) Horticultural products received for handling and sale in the 24
fresh market shall be accounted for to the consignor with individual 25
pack-out records that shall include variety, grade, size, and date of 26
delivery. Individual daily packing summaries shall be available 27
within ((forty-eight)) 48 hours after packing occurs. However, 28
platform inspection shall be acceptable by mutual contract agreement 29
on small deliveries to determine variety, grade, size, and date of 30
delivery; 31
(c) Terms under which the commission merchant may use his or her 32
judgment in regard to the sale of the pooled horticultural product;33
(d) The charges to be paid by the consignor as filed with the 34
state of Washington; 35
(e) A provision that the consignor shall be paid for his or her 36
pool contribution when the pool is in the process of being marketed 37
in direct proportion, not less than ((eighty)) 80 percent of his or 38
her interest less expenses directly incurred, prior liens, and other 39
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advances on the grower's crop unless otherwise mutually agreed upon 1
between grower and commission merchant. 2
(18) "Processor" means any person, firm, company, or other 3
organization that purchases agricultural crops from a consignor and 4
that cans, freezes, dries, dehydrates, cooks, presses, powders, or 5
otherwise processes those crops in any manner whatsoever for eventual 6
resale. 7
(19) "Producer" means any person engaged in the business of 8
growing or producing any agricultural product, whether as the owner 9
of the products, or producing the products for others holding the 10
title thereof. 11
(20) "Proprietary seed" means any seed that is protected under 12
the Federal Plant Variety Protection Act. 13
(21) "Retail merchant" means any person operating from a bona 14
fide or established place of business selling agricultural products 15
((twelve)) 12 months of each year. 16
(22) "Seed" means agricultural seed, flower seed, vegetable seed, 17
other crop seed, and seeds, as defined in chapter 15.49 RCW.18
(23) "Seed bailment contract" means any contract meeting the 19
requirements of chapter 15.48 RCW. 20
(24) "Seed clean out" means the process of removing impurities 21
from raw seed product. 22
(25) "Seed grower" means a person who grows turfgrass seed in 23
this state on a commercial basis without entering into a contract 24
with a seed dealer before harvesting of the seed.25
(26) "Seed producer" means a person who grows turfgrass seed in 26
this state on a commercial basis for a seed dealer.27
(27) "Seed production contract" means a written agreement between 28
a seed producer and a seed dealer for the growing of turfgrass seed 29
in this state.30
(28) "Seed purchase contract" means a written agreement for a 31
seed dealer to purchase turfgrass seed that has been grown by a seed 32
grower or seed producer. "Seed purchase contract" does not include a 33
turfgrass seed production contract.34
(29) "Turfgrass seed" means Kentucky bluegrass, perennial 35
ryegrass, tall fescue, hard fescue, slender fescue, and creeping red 36
fescue. Forage fescue and reclamation grass seed are excluded from 37
this order.38
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Sec. 2. RCW 20.01.465 and 2004 c 212 s 3 are each amended to 1
read as follows: 2
(1) In the preparation and use of written contracts, it is 3
unlawful for a commission merchant to include in such contracts a 4
requirement that a consignor give up all involvement in determining 5
the time the consignor's agricultural products will be sold.6
(2) Subsection (1) of this section does not apply to agricultural 7
products consigned to a commission merchant under a written pooling 8
agreement. 9
(3) Subsection (1) of this section does not apply to seeds 10
consigned to a commission merchant. 11
(4) Subsection (1) of this section does not apply to turfgrass 12
seed production contracts and seed purchase contracts.13
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