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SB 5074

Concerning the payment of turfgrass seed contracts.

2025-2026 Regular Session Introduced by Matt Boehnke and 2 co-sponsors

Establishes uniform contracts and timely payment rules for turfgrass seed production and purchase to protect producers from delayed payments.

Effective date 7/27/2025.
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WeVote Research Nonpartisan
Bill Summary · SB 5074

SB 5074 — Summary (Concerning the payment of turfgrass seed contracts)

Status: Chapter 117, 2025 Laws — Governor signed 4/22/2025. Effective date: 7/27/2025.
Introduced: 12/17/2024. Passed Senate 3/3/2025 (49–0); passed House 4/9/2025 (97–1).

Purpose / intent

Establish uniform standards, payment rules, and dispute/enforcement processes for turfgrass seed production and purchase contracts to reduce producer payment delays and commercial uncertainty in Washington’s turf seed industry.

Key definitions

  • “Turfgrass seed”: Kentucky bluegrass, perennial ryegrass, tall fescue, hard fescue, slender fescue, creeping red fescue (forage fescue and reclamation grasses excluded).
  • “Turf seed dealer”: person contracting to buy or contract for the growing of turfgrass seed in WA.
  • “Producer,” “turf seed production contract,” “turf seed purchase contract,” and “seed bailment contract” are defined in statute.

Major provisions and changes

  1. Required contract terms

    • Turf seed production/purchase contracts must, at minimum, include estimated delivery date(s), terms and estimated payment date(s), quantity, and species/cultivars/quality standards (for purchase contracts).

  2. Default payment timing

    • Unless the contract specifies otherwise, payment to a producer is due at the earliest of:
      • the date specified in the contract; or
      • 30 days after seed delivery; or
      • May 1 of the calendar year following harvest.
    • Exception: production contracts authenticated by both parties before planting may set alternate final payment dates if the date is stated in the contract.

  3. Risk, storage, and testing

    • Unless pre‑plant authenticated contract provides otherwise, risk of loss and storage fee responsibility shift to the dealer upon dealer notice of delivery or upon delivery of passing test results.
    • Procedures are established for purchases when testing shows seed does not meet contract quality standards; parties may contractually set terms and pricing in those cases.

  4. Contract modifications and protections

    • A dealer requesting modification of a production contract must pay at least 25% of the contract value prior to modification.
    • Parties may not force another to agree to a material unilateral modification; exclusive out‑of‑state venue and choice‑of‑law provisions are prohibited.
    • Courts may award costs and reasonable attorneys’ fees where a party acted in bad faith.

  5. Security interests, liens, and bailment

    • Seed bailment or seed purchase contracts do not create a possessory security interest under the UCC; however, payments due from dealers are subject to liens and security interests and are governed by related lien statutes and Title 62A (UCC).

  6. WSDA enforcement and oversight

    • Producers may notify WSDA of unpaid amounts. If WSDA determines payment is delinquent, it must notify the dealer; dealer has 30 days to pay.
    • WSDA may assess interest (on the same basis as for commission merchants), suspend a dealer’s license until payments are current, and refuse issuance of a license where suspension remains.
    • WSDA may adopt rules requiring financial assurance (e.g., bonding) from dealers and make mediation services available for disputes.

Who is affected

  • Turf seed producers (growers) in Washington — stronger, timelier payment protections.
  • Turf seed dealers — new payment timing defaults, possible cash‑upfront obligations when requesting contract changes, potential licensing consequences and financial assurance requirements.
  • Lenders and lienholders — clarification that payments are subject to liens/security interests.
  • WSDA — expanded enforcement and rulemaking responsibilities.

Potential impacts

  • Improves producer cash flow and reduces risk of long unpaid harvests.
  • Aligns Washington practices with regional standards (reduces competitive disadvantage).
  • May increase compliance costs for dealers (required prepayments, bonding or other financial assurance).
  • Limits certain contractual clauses (choice of law/venue), increasing disputes to be resolved in-state.

For full statutory language, see Substitute Senate Bill 5074 (69th Legislature, 2025) and the enacted chapter (Chapter 117, 2025 Laws).

Compiled from official sources — confirm details with the bill’s official record.

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