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.