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House Bill 2159
During the 2011 Oregon Legislative session, the legislature passed House Bill 2159, which was signed into law by Governor John Kitzhaber on June 16, 2011. This statute replace the original measure ORS 576.727, the "Slow Pay/No Pay" law, which was established in 2001 to address delayed contract payments by Oregon grass seed dealers. The intent of the new statue was to address cases where the earlier statute was unenforceable because contracts did not provide for payment date or price. Some of the areas this new statute addresses are:
  • Establish required terms and formats for production contracts between grass seed producers and dealers;
  • Establishes an alternative to the default contract where contracts are authenticated before planting;
  • Establishes regulations to deal with seeds that do not meet quality specifications of the contract;
  • Establish remedies for non-performance and price disputes;
  • Establishes responsibility of a seed dealers parent company;
  • Requires dealers who contract for seed production in Oregon to be licensed;
  • Allows for denial of seed dealer license based on past activities;
  • Allows department to adopt rule that require seed dealer to provide financial assurance of performance;
This law became effective on August 1, 2011 and applies to grass seed purchases or new contracts entered into after this date.
 
This law is complex in its language and broad reaching by nature and for the Department to administer, it will be necessary to develop Oregon Administrative Rules. As such, the Department is working closely with the Oregon Seed Council which has formed a special advisory committee made up of industry members, seed dealers, and producers to assist in drafting these administrative rules.
 
The process for adopting Oregon Administrative Rules in as open and public process, encouraging input from those impacted by the rules.  It involves public hearings as well as ratification by the Oregon Legislature.
 
Please watch this site closely for updates:
  • Questions and Answers on this new statute,
  • Progress on writing Oregon Administrative Rule
 
Please contact Commodity Inspection Program before submitting the Slow Pay complaint form.