OregonOregon law sets payment deadlines and interest for seed dealers
Oregon law requires seed dealers to pay certain overdue contract bills with interest, prove payment to the state, and meet a 30-day deadline after notice.
What it does
When the department finds a dealer missed a contract payment, it must notify the dealer to pay the overdue amount plus interest. The dealer must pay and send proof within 30 days of the written notice.
A dealer that misses the 30-day payment deadline must have its license suspended until the department is satisfied that all payments owed to producers and seed growers are current.
If a dealer fails to make the payment required by the department's notice, the producer or grower may sell contract seed still in their possession in a commercially reasonable way.
The department may charge producers and growers up to $100 to check whether a payment followed the contract and up to $400 to notify the dealer in writing about overdue amounts and interest.
Argument forProducers and growers could recover overdue payments with interest, and dealers who miss the deadline could lose their licenses until all payments are current.
Argument againstProducers and growers could owe fees of up to $100 for a payment check and $400 for a written notice, which may make asking the department for help costly.
More detail
After finding a missed contract payment, the department must notify the dealer to pay the overdue amount with interest and provide proof of payment. This covers payments to producers for agricultural or other seed, and to seed growers for grass or other seed, under seed production or purchase contracts. The department must first check whether the payment was made when due. Interest is calculated each month at a rate one percentage point above the bank prime loan rate in the latest Federal Reserve H.15 release. The dealer must pay and give the department written proof within 30 days after the department issues its notice.
The department must suspend a dealer's seed dealer license if the dealer does not pay within the 30-day deadline. This applies when a dealer fails to make the payment required by the department's notice. The license stays suspended until the department is satisfied that the dealer is current on all payments owed to producers and seed growers. The suspension order is subject to review under Oregon administrative law. The department may not use the procedure described in ORS 183.430 (2). The suspension lasts until the department is satisfied that the dealer is current on all payments owed to producers and seed growers.
A producer or grower may sell contract seed still in their possession in a commercially reasonable way. This covers seed from the contract that remains in the producer's or grower's possession. This applies when a dealer fails to make the payment required by the department's notice. A dealer may give consent by other means, and the provision does not override the terms of that consent. This applies after the dealer fails to make the payment required by the department's notice.
The department may charge producers and growers fees of up to $100 to check a payment and up to $400 to send a written notice to a dealer. The fees may be charged to producers and seed growers. The first fee is for checking whether payment followed the contract terms. The second fee is for notifying the dealer in writing about the deadline to pay overdue amounts and interest.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 6Chapter 41, (2026 Laws): Effective date March 31, 2026.Latest
- Mar 31Governor Tina Kotek signed.Became Law
- Mar 5President signed.Major
- Mar 4Speaker signed.Major
- Mar 3Third reading. Carried by Nash. Passed.Passed Senate
- Vote recorded Third reading. Carried by Nash. Passed. Result: pass.Upper
- Mar 2Second reading.Minor
- Mar 2Recommendation: Do pass the A-Eng. bill.Minor
- Feb 26Public Hearing and Work Session held.
- Vote recorded Heard and Reported Out. Result: pass.Upper
- Feb 19Referred to Natural Resources and Wildfire.Minor
- Feb 19First reading. Referred to President's desk.Minor
- Feb 17Third reading. Carried by Scharf. Passed.Passed House
- Vote recorded Third reading. Carried by Scharf. Passed. Result: pass.Lower
- Feb 17Potential conflict(s) of interest declared by Scharf.
- Feb 16Second reading.Minor
- Feb 13Recommendation: Do pass with amendments and be printed A-Engrossed.Minor
- Feb 11Work Session held.
- Vote recorded Heard and Reported Out with Amendments. Result: pass.Lower
- Feb 9Public Hearing held.
- Feb 2Referred to Agriculture, Land Use, Natural Resources, and Water.Minor
- Feb 2First reading. Referred to Speaker's desk.Introduced
Agriculture