Bill Text: CA SB592 | 2011-2012 | Regular Session | Amended

California Senate Bill 592 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Dairy cattle supply liens.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2012-09-13 - Chaptered by Secretary of State. Chapter 309, Statutes of 2012. [SB592 Detail]

Download: California-2011-SB592-Amended.html

BILL NUMBER: SB 592	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 23, 2012
	AMENDED IN SENATE  MAY 17, 2011
	AMENDED IN SENATE  MAY 2, 2011

INTRODUCED BY   Senator Harman

                        FEBRUARY 17, 2011

   An act to amend Sections 57402, 57403, 57405, 57406, and 57413 of
the Food and Agricultural Code, relating to dairy cattle supply
liens.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 592, as amended, Harman. Dairy cattle supply liens.
   (1) Existing law provides that a person who provides feed or
materials to aid the raising or maintaining of dairy cattle has a
lien upon the proceeds of the milk or milk products produced from the
dairy cattle, for the reasonable or agreed charges for the feed or
materials provided and for the costs of enforcing the lien. 
   This bill would expand the lien to include dairy cattle and
offspring.  
   This bill would, in addition, provide that a person who provides
feed or materials to aid the offspring of the dairy cattle has a lien
on the proceeds of milk or milk products produced from the dairy
cattle. The bill would specify that the lien attaches to dairy
products proceeds. 
   (2) Existing law provides that the lien shall be perfected and
shall be effective upon the filing of a notice of claim of lien with
the Secretary of State, as specified. Existing law requires the
notice of claim of lien, among other things, to state the name and
address of the lien debtor. The notice of claim of lien is required
to be signed by the lien claimant or by a person authorized to sign
documents of a similar kind on behalf of the claimant.
   This bill would delete the requirement that the lien be effective
upon filing a notice of claim of lien with the Secretary of State,
and would instead require the lien to be perfected by filing a notice
of claim of lien with the Secretary of State, as specified. The bill
would require the notice of claim of lien to state the last known
name and address of the lien debtor. The bill would also delete the
language providing that the notice of claim of lien shall be signed
by the lien claimant or by a person authorized to sign documents of a
similar kind on behalf of the claimant.
   (3) Existing law requires the lien claimant to provide written
notice of the claim of the lien to the lien debtor within 10 days of
the date of filing with the Secretary of State.
   This bill would require notice to be served, as specified,
depending on whether the lien debtor is an entity, individual, or
general partnership. The bill would also provide that failure to give
written notice of the claim would not affect the validity or
priority of the lien.
   (4) Existing law requires these liens to have a certain priority,
as specified.
   This bill would delete the requirement that the lien have priority
in accordance with the time the notice of claim of lien is filed.
   (5) Existing law requires the lien claimant to foreclose on a lien
only in an action to recover the reasonable or agreed charges for
feed and materials delivered and enforce a final judgment as
provided.
   This bill would instead authorize the lien claimant to foreclose
on a lien in an action to recover the reasonable or agreed charges
for feed and materials delivered and authorize the lien claimant to
enforce a final judgment, as provided, and apply for a right to
attach order or writ of attachment through the court in which the
action is brought.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 57402 of the Food and Agricultural Code is
amended to read:
   57402.  A person who provides feed or materials to aid the raising
or maintaining of dairy cattle or offspring therefrom has a lien
upon  the dairy cattle and offspring and  the
proceeds of the milk or milk products produced from the dairy cattle,
for the reasonable or agreed charges for the feed or materials
provided and for the costs of enforcing the lien. However, the amount
of charges secured by the lien cannot exceed an amount equal to the
reasonable or agreed charges for feed or material provided within a
45-day period, and only two providers of feed or materials shall have
an enforceable lien at any time according to the priority set forth
in Section 57406.
  SEC. 2.  Section 57403 of the Food and Agricultural Code is amended
to read:
   57403.  (a) The lien created pursuant to this chapter attaches to
 dairy cattle and offspring therefrom and  dairy
products proceeds.
   (b) Except as otherwise provided in this chapter, the notice of
claim of lien shall remain in effect, and no new notice of claim of
lien shall be required in order to maintain the lien, as long as the
person who provides feed or materials either (1) remains unpaid for
amounts secured by the lien, or (2) continues to provide feed or
materials on a regular basis to the lien debtor. For purposes of this
section, providing feed or materials shall not be deemed to be made
on a regular basis if a period of more than 30 days elapses between
deliveries.
  SEC. 3.  Section 57405 of the Food and Agricultural Code is amended
to read:
   57405.  The lien created by this chapter shall be perfected by the
filing of a notice of claim of lien with the Secretary of State
pursuant to all the provisions of this section.
   (a) The person who provides feed or materials may, at any time,
file in the manner and at the place set forth in this section, the
notice of claim of lien.
   (b) The notice of claim of lien shall, at a minimum, set forth all
of the following information:
   (1) The name and address of the lien claimant.
   (2) The last known name and address of the lien debtor.
   (3) The location of the dairy to which the feed and materials were
provided.
   (4) That the lien claimant has a dairy cattle supply lien pursuant
to Section 57402.
   (c) The notice of claim of lien shall be filed on a form which is
the standard form of original financing statement prescribed by the
Secretary of State pursuant to Section 9521 of the Commercial Code.
The standard form shall be completed with the following changes:
   (1) The lien claimant may be identified either as lien claimant or
as secured party.
   (2) The form shall be signed by the lien claimant and need not be
signed by the debtor.
   (3) In the space for the description of the collateral there shall
instead be entered the statement substantially as set forth in
paragraphs (3) and (4) of subdivision (b).
   (d) The notice of claim of lien shall be filed, indexed, and
marked in the office of the Secretary of State in the same manner as
a financing statement is filed, indexed, and marked pursuant to
Section 9519 of the Commercial Code.
   (e) (1) The lien claimant shall provide written notice of the
claim of lien to the lien debtor within 10 days of the date of the
filing with the office of the Secretary of State.
   (2) If the lien debtor is an entity, notice shall be given to the
lien debtor's registered agent for service of process. If the lien
debtor is an individual or general partnership, the notice shall be
given at any address at which the individual conducts business.
   (3) Failure to give written notice of the claim to the lien debtor
shall have no effect on the validity or priority of the lien.
   (f) For the purpose of the Secretary of State's index pursuant to
Sections 9515, 9516, and 9522 of the Commercial Code and for the
purpose of the issuance of a certificate pursuant to Section 9519 or
9528 of the Commercial Code, the Secretary of State shall identify a
notice pursuant to this section as a financing statement.
  SEC. 4.  Section 57406 of the Food and Agricultural Code is amended
to read:
   57406.  Notwithstanding Chapter 6.7 (commencing with Section 3080)
of Title 14 of Part 4 of Division 3 of the Civil Code, the lien
created by this chapter shall have the same priority as a security
interest perfected by the filing of a financing statement as of the
date the notice of claim of lien was filed.
  SEC. 5.  Section 57413 of the Food and Agricultural Code is amended
to read:
   57413.  The lien claimant may foreclose on a lien created by this
chapter in the following manners:
   (a) The lien claimant may foreclose in an action to recover the
reasonable or agreed charges for feed and materials delivered. In
such an action, the final judgment may be enforced pursuant to Title
9 (commencing with Section 680.010) of Part 2 of the Code of Civil
Procedure.
   (b) In such an action, the lien claimant may apply pursuant to
Title 6.5 (commencing with Section 481.010) of Part 2 of the Code of
Civil Procedure for a right to attach order and a writ of attachment
by filing an application for the order and writ with the court in
which the action is brought.