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Panel defines interest rate for seed contracts, forwards HB 4,065 to the floor
Summary
The committee adopted the dash 1 amendment to HB 4,065, specifying interest as 1% above the Federal Reserve prime rate for late seed production and seed purchase contract payments, and reported the bill to the House floor with a due‑pass recommendation.
The committee opened a work session on House Bill 4,065 concerning late payment on seed production and seed purchase contracts and adopted a clarifying dash 1 amendment that defines the contract interest rate.
Miss Bluder (staff) explained the dash 1 change clarifies the market‑rate language in the bill by tying interest to the Federal Reserve prime loan interest plus one percentage point. "The dash 1 simply does, just put in there the base bill did not have a definition for the interest rate," Representative Sharp said, describing an agreement to use the Federal Reserve prime rate plus 1% to avoid the need for rule‑making.
The committee adopted the amendment by voice vote and then moved HB 4,065 as amended to the House floor with a due‑pass recommendation. Representative Sharp and others noted a potential conflict of interest that would be declared if the bill reaches the floor, and the committee proceeded without recorded objections.
The amendment was characterized in committee as having no fiscal or revenue impact and not requiring sub‑referral.
