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Growers Say New Seed‑payment Bill Will Speed Enforcement; Industry Urged Caution
Summary
HB 4065 would clarify slow‑pay/no‑pay procedures, increase fees to fund ODA processing and strengthen penalties and interest for unpaid seed contracts; growers urged passage after validated claims went unenforced, while some industry stakeholders remain neutral and call for rulemaking.
The committee heard testimony on House Bill 4065, introduced to address slow‑pay and no‑pay disputes in the Oregon grass‑seed industry. Representative Anna Sharp and several growers described recent contract‑payment failures that left producers unpaid and carrying interest on operating loans.
Emily Woodcock, a grower who submitted a validated slow‑pay/no‑pay claim for more than 750,000 pounds of seed, said ODA validated her claim but enforcement stalled. “Months passed, and no action was taken against the dealer,” Woodcock said. Witnesses supporting the bill said it clarifies the 30‑day payment requirement, requires proof of payment, raises penalties for nonpayment and increases fees growers pay to ODA so the department has resources to process claims.
The Oregon Seed Association said it is neutral on the bill and will continue to work with ODA and the bill sponsor during rulemaking. “Our association is neutral on the bill,” said Sean Gillians, adding that rulemaking and further technical work may resolve remaining issues and that some fixes could return in 2027.
Testimony noted the bill is not a full solution to market structural problems and that other measures (bonding models like those in Washington and Idaho) may be needed for longer‑term stability. Witnesses urged prompt legislative action to reduce growers’ exposure while recommending continued collaboration between industry and state agencies.
The committee closed the public hearing on HB 4065 with no immediate vote; committee members will consider amendments and the results of forthcoming ODA rulemaking as they weigh the measure.
