WashingtonSB 50742025-2026 Regular SessionSenate

Concerning the payment of turfgrass seed contracts.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 0 costs, 6 mixed.

New contract protections for turf seed growers

Beginning July 27, 2025, Washington's new rules cover seed contracts entered into, extended, or renewed on or after that date. Covered turfgrass seed includes Kentucky bluegrass, perennial ryegrass, tall fescue, hard fescue, slender fescue, and creeping red fescue. Forage fescue and reclamation grass seed are excluded.

Clearer payment deadlines for seed growers

Production-contract payment is due by the earliest of the contract date, 30 days after delivery, or May 1 following harvest. Different dates require a stated final-payment date and either both parties' approval before planting or an extension or renewal. Producers must perform without another breach; an unset price does not prevent enforcement and follows state price-setting rules. Purchase contracts must list estimated delivery and payment dates, payment terms, quantity, species, cultivars, and quality standards. Purchase contracts also remain enforceable without a set price; dealers must pay within 30 days after delivery unless both parties extend that deadline in writing.

Growers gain options for lower-quality seed

When tests show seed fails production-contract standards, growers can send results and ask the dealer to buy it, documenting receipt. Growers have 30 days after receiving test results to seek this agreement; dealers have 30 days after receiving the inquiry to respond. A timely purchase response creates a purchase contract priced under the production contract, mutual agreement, or otherwise market price. Market pricing cannot exceed the production-contract price for seed meeting standards. No timely response counts as refusal and allows a legal sale as 'variety not stated,' without authorizing other protected-variety sales.

New seed storage and ownership rules

Dealers take seed-loss risk and storage fees at the earlier of delivery following their notice or receipt of passing test results. A production contract approved by both parties before planting can expressly set a different rule. Seed bailment and purchase contracts do not create a security interest based on possession. Bailment contracts need no filing, recording, or notice to establish validity during their term or dealer ownership of covered seed and plants. Payments remain subject to agricultural liens and properly recorded security interests under state law.

Overdue seed payments trigger interest and suspension

After a grower reports nonpayment, the Washington Department of Agriculture checks whether payment is due and unpaid. If confirmed, dealers receive written notice giving 30 days to pay overdue amounts plus 1% monthly simple interest. Failure to comply requires license suspension until payments are current and authorizes commercially reasonable sale of contract seed still held by growers. Contracts cannot change this remedy, and growers retain lien-notice rights. The department may charge growers enforcement costs, with no amount specified, and the director may offer optional mediation for production or purchase disputes.

Seed dealers face stronger licensing safeguards

The Washington Department of Agriculture may adopt rules requiring financial backing for dealers' production and purchase contracts before issuing licenses. The law does not set its amount or form, and the requirement depends on department rules. The department may deny licenses to dealers previously suspended under the law's overdue-payment rule or applicants with specified connections to them. Those connections include ownership, officer roles, or substantial control when the event leading to suspension occurred; denial is optional.

Seed growers gain contract change protections

Dealers requesting production-contract payment changes must first pay growers at least 25% of the contract value. Production contracts cannot require another state's law or exclusive courts, waive protections, or allow one-sided major changes; conflicting terms are void. These limits also cover nonwritten production agreements, subject to state rules on enforceable sales agreements. Neither party to a production or purchase contract can demand a major change as a condition of performance; forced changes are unenforceable. Courts may award the winner court costs and reasonable attorney fees for bad faith, and dealers are bound by agents' production-contract performance commitments.

Sponsors & Cosponsors

Sponsor

Matt Boehnke
Republican • Senate

Cosponsors

Deborah Krishnadasan
Democratic • Senate
Mike Chapman
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 146 • No: 1

House vote • 4/9/2025

3rd Reading & Final Passage

Yes: 97 • No: 1

Senate vote • 3/3/2025