BILL NUMBER: SB 592 AMENDED
BILL TEXT
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 , and to add Section 57415 to, 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.
(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. After payment default by the lien debtor,
the lien claimant would be authorized to notify any person obligated
on any proceeds subject to the lien to make payment or otherwise
render performance to the lien claimant, and would be authorized to
enforce the obligations of any person obligated on any proceeds
subject to the lien, as provided.
The bill would require that the prevailing party in any action or
proceeding to enforce the lien be entitled to reasonable attorney's
fees, fixed by the court, as an element of the costs of suit.
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. 2. 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 affect 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. 3. SEC. 4. Section 57406 of the
Food and Agricultural Code is amended to read:
57406. The Notwithstanding Chapter 6.7
(commencing with Section 3080) of Title 14 of Part 4 of Di
vision 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. 4. 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) (1) 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.
(2)
(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.
(b) After payment default by the lien debtor, the lien claimant
may do all of the following:
(1) Notify any person obligated on any proceeds subject to the
lien created under this chapter to make payment or otherwise render
performance to or for the benefit of the lien claimant.
(2) Enforce the obligations of any person obligated on any
proceeds subject to the lien created under this chapter and exercise
the rights of the lien debtor with respect to those proceeds, and
with respect to any property that secures the right to those proceeds
subject to the lien created under this chapter.
(c) If any person obligated on any proceeds subject to the lien
created under this chapter makes a payment to any person other than
the lien claimant after receipt of a notice pursuant to paragraph (2)
of subdivision (b), that payment shall not constitute a defense or
basis for reduction of the person's liability to the lien claimant
under paragraph (2) of subdivision (b).
SEC. 5. Section 57415 is added to the Food and
Agricultural Code, to read:
57415. In any action or proceeding to enforce the lien
established under this chapter, the party determined to be the
prevailing party shall be entitled to reasonable attorney's fees in
addition to other costs. Reasonable attorney's fees shall be fixed by
the court and shall be an element of the costs of suit.