SENATE COMMITTEE ON NATURAL RESOURCES, AGRICULTURE, SALMON AND WATER

 

 

March 19, 2001   Hearing Room B

8:00 am Tapes  63 - 64

MEMBERS PRESENT:            Sen. Ken Messerle, Chair

Sen. Frank Shields, Vice-Chair

Sen. Jason Atkinson

Sen. Roger Beyer

Sen. Ginny Burdick

Sen. Ryan Deckert

Sen. Bill Fisher

 

MEMBER EXCUSED:

 

STAFF PRESENT:                  Jennifer Solomon, Committee Administrator

Cheryl Young, Committee Assistant

 

 

MEASURE/ISSUES HEARD:            Information Meeting on Lien Bill Package

                                                HB 2051-A, Public Hearing and Possible Work Session

                                                HB 2037-A, Public Hearing and Possible Work Session

                                                HB 2036-A, Public Hearing and Possible Work Session                       

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 63, A

005

Chair Messerle

Calls meeting to order at 8:08.  Opens Informational Meeting on Agriculture Lien Bill Package.

012

Rep. Kropf

Representing District 37. Discusses related laws regarding the reworking of Oregon’s Agricultural Lien Laws Statutes. Asks that the committee consider the three bills, HB 2051, HB 2037 and HB 2036. 

102

Chair Messerle

States his appreciation for all the work involved. States that they have been informed that HB 2051 is the Mother Bill.

105

Rep. Kropf

Agrees with the statement.

109

John  Albert

Attorney. Describes the bankruptcy of the AgriBioTech, Inc. and the effects on the farmers within Oregon and in other states. Notes that their position would have been significantly stronger if HB 2051 had been in place. Continues testimony.

300

Chair Messerle

Asks about the problems with the processes and if he feels that the commodities are becoming more of a world market and wonders if that might be causing the failures.

312

Albert

Responds that he thinks that perhaps the Chair is correct in his perspective.

322

Sen. Deckert

Asks about the federal law that just passed, and will it be helpful in circumstances like this.

329

Albert

States that this would have very little effect on the ABT bankruptcy, because it deals primarily with individual Chapter 7 and Chapter 13 bankruptcies.

338

Sen. Kropf

Makes further comments regarding similar circumstances and future legislation.

409

Jean Wilkinson

Associate Director for Governmental Affairs for the Oregon Farm Bureau.  Speaks of the devastation caused by the ABT bankruptcy and  the support of these bills. Submits written testimony.  (EXHIBIT A).

Tape 64, A

040

Brian Glaser

Grass Seed Farmer. Speaks in support of these bills.  Submits written testimony. (EXHIBIT B).

063

Chair Messerle

Declares  a sub-committee.

064

Glaser

Continues testimony.

097

Chair Messerle

Declares Full Committee

101

Walt Gowell

Attorney practicing in McMinnville. Speaks in favor of these bills. Expands on description of these bills. Submits written testimony. (EXHIBIT C).

131

Chair Messerle

Asks if the liens include cranberries and meat products.

134

Gowell

Those are not being added to the agricultural produce lien, by this amendment but are currently covered under existing statute regarding meat products. Continues testimony. 

201

Sen. Beyer

Asks if he is speaking of the original bill and not the A-engrossed bill.

207

Gowell

Agrees that it is the original bill. Continues with testimony.

265

Tim Martinez

Vice President, Government Relations for the Oregon Bankers Association. Notes that this is a change in the philosophy for the association noting that they have worked productively with the Farm Bureau and others and the positive results from the experience. Submits written testimony.  (EXHIBIT D).

292

Donn Wiley

Representing the Oregon Bankers Association Agriculture Committee. Describes the changes these will make, and asks for the committee’s support of these bills.

345

Martinez

Continues testimony and clarifies some areas of the bills. Feels they’ve resolved many issues regarding the ABT bankruptcy.

392

Sen. Beyer

Asks if it wouldn’t be wiser to blend all three bills together, instead of having them be individualized.

411

Wiley

Defers to sponsors of the bill on that issue. Discusses inconsistencies with some sections of the bills.

486

Chair Messerle

Closes Informational Meeting, Opens Pubic Hearing on HB 2036-A, HB 2037-A, HB 2051-A. Declares possible conflict of interest.

Tape 63, B

HB 2036-A, HB 2037-A, HB 2051-A, PUBLIC HEARING

029

Sen. Beyer

Asks about the changes, of the agricultural products to include horticulture products and if this is going to bring nurseryman under the agricultural producer lien.

039

Wiley

Responds that he believes it gives them a choice of the two different types of liens to file.

040

Sen. Beyer

Asks about the proposal to eliminate Christmas tree dealer from the statute. Views this as being broadened so those Christmas tree producers would be able to file a lien against anyone who buys a Christmas tree from them.

044

Wiley

Agrees, and expands on response.

046

Beyer

States that they made certain that it did not apply to final consumers of the tree, and only wanted to lien those who were buying the trees for the purpose of reselling. Asks if this is an expansion of that statute.

050

Wiley

Agrees, and clarifies.

056

Sen. Beyer

Asks for clarification regarding the Nurserymen’s lien being attached  to the final consumer against their real estate and not to the product you are selling.

062

Wiley

Agrees and clarifies.

067

Sen. Beyer

Asks if the Nurseryman’s lien is not changed then person still has a choice to attach it to real estate if he chooses.

068

Wiley

That is correct.

070

Sen. Deckert

Asks if there are any unintended consequences in the future.

073

Wiley

Responds that does not see any negative consequences.

101

Martinez

Adds comments to Mr. Wiley response.

113

Chair Messerle

Asks Mr. Martinez how the banks are protecting their collateral and should we be looking at bonding for processors.

129

Martinez

Responds to the effects to the growers and the producers.

151

Wiley

Adds comments to Mr. Martinez’ response.

158

Sen. Fisher

Asks what  the percentage of the problems with the bankruptcies is to management vs. mismanagement.

177

Martinez

Refers to the AGRI-FROZEN bankruptcy.

194

Wiley

Makes additional comments to Mr. Martinez’ response.

216

Chair Messerle

Asks if any processors were present at the meetings with Rep. Kropf.

220

Wiley

Yes, they were well represented.

240

Chair Messerle

States that he thought there would be more interest in testifying, especially if they are discussing other areas of bonding and capital requirements.

251

Wiley

Agrees. Notes that there are some concerns of clients obtaining funding.

262

Martinez

Makes additional comments.

274

Dave Nelson

Executive Secretary of Oregon Seed Council. Speaks in support of all three bills. Considering the grower’s indemnity fund to insure against something like the bankruptcies of the past.

448

Chair Messerle

Asks how the producer judges if his wholesaler is reputable.

465

Nelson

Responds that he doesn’t think there is an objective way to do that, because most of the seed companies are privately held.

504

Chair Messerle

Makes additional comments regarding the need to protect the producers.

015Tape 64, B

020

Jim Cramer

Acting Administrator for the Commodity Inspection Division for the Oregon Department of Agriculture. Speaks in favor of the bills. Submits written testimony. (EXHIBIT E).

029

Chair Messerle

Asks if the department has been involved in the amendments to HB 2036.

031

Cramer

States that the department has been involved in the review and comments to the bills.

034

Chair Messerle

Will not do any action of bills today. Will wait until the amendments come back, so they can be dealt with at the same time.

042

Sen. Beyer

Urges caution because of sections of the law in 2051 and the changes in the others may cause the need to change it back.

048

Chair Messerle`

States that he hopes LC is keeping a close watch, and that they are depending on folks who have been working on the committee to double-check that for them also.

056

John McCully

Representing the Ag Cooperative Council. Comments on the Agricultural Produce Lien. Discusses issues in the A-engrossed part of bill. Makes clarification in several areas of bill. Speaks in favor of the bills.

102

Chair Messerle

Asks how cooperative members are protected.

107

McCully

Responds that they have to be protected by their involvement in the co-op.

121

Chair Messerle

States his concern regarding the local co-ops.

132

McCully

Responds that the growers have some control over the large companies.

139

Chair Messerle

Makes comments regarding his involvement with co-ops in the past. States that he is pleased with the movement of these bills, but sees that there is more work to be done. Closes Public Hearing on HB 2051, HB 2037, and HB 2036.  Adjourns meeting at 9:43 a.m.

 

Submitted By,                        Reviewed By,

 

 

 

Cheryl Young,                        Jennifer Solomon,

Committee Assistant                        Administrator

 


EXHIBIT SUMMARY

 

A – HB 2051, HB 2037, HB 2036, written testimony, Jean Wilkinson, 1p.

B – HB 2051, HB 2037, HB 2036, written testimony, Brian Glaser, 1p.

C – HB 2051, written testimony, Walt Gowell, 3pp.

D – HB 2051, written testimony, Tim Martinez, 3pp.

E – HB 2051, HB 2037, HB 2036, written testimony, Jim Cramer, 1p.