2004 Legislation
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HOUSE BILL NO. 679 – Agricultural commodity, liens

HOUSE BILL NO. 679

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Bill Status



H0679...............................................by AGRICULTURAL AFFAIRS
AGRICULTURAL COMMODITY DEALERS - Amends existing law to revise provisions
relating to certain liens of agricultural commodity producers and
agricultural commodity dealers; to revise provisions relating to the
attachment of certain liens of agricultural commodity producers and
agricultural commodity dealers; and to revise provisions relating to the
priority of certain liens of agricultural commodity producers and
agricultural commodity dealers.
                                                                        
02/13    House intro - 1st rdg - to printing
02/16    Rpt prt - to Agric Aff

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 679
                                                                        
                             BY AGRICULTURAL AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO AGRICULTURAL COMMODITY PRODUCER AND DEALER LIENS; AMENDING SECTION
  3        45-1802, IDAHO CODE, TO REVISE PROVISIONS RELATING  TO  CERTAIN  LIENS  OF
  4        AGRICULTURAL  COMMODITY  PRODUCERS  AND  AGRICULTURAL  COMMODITY  DEALERS;
  5        AMENDING SECTION 45-1803, IDAHO CODE, TO REVISE PROVISIONS RELATING TO THE
  6        ATTACHMENT  OF CERTAIN LIENS OF AGRICULTURAL COMMODITY PRODUCERS AND AGRI-
  7        CULTURAL COMMODITY DEALERS; AND AMENDING SECTION 45-1805, IDAHO  CODE,  TO
  8        REVISE  PROVISIONS  RELATING  TO THE PRIORITY OF CERTAIN LIENS OF AGRICUL-
  9        TURAL COMMODITY PRODUCERS AND AGRICULTURAL COMMODITY DEALERS.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION 1.  That Section 45-1802, Idaho Code, be, and the same  is  hereby
 12    amended to read as follows:
                                                                        
 13        45-1802.  LIEN CREATED -- WHO MAY HAVE. An agricultural commodity producer
 14    or  an  agricultural commodity dealer who sells, or delivers under contract or
 15    bailment, an agricultural product has a lien on the  agricultural  product  or
 16    the  proceeds  of  the sale of the agricultural product as provided in section
 17    45-1804, Idaho Code, livestock for which the agricultural product was used  or
 18    the proceeds of the sale of such livestock, or any derivative products of such
 19    livestock, including milk. The lien created in this chapter may attach regard-
 20    less  of  whether  the  purchaser  uses  the agricultural product purchased to
 21    increase the value of his livestock or whether he uses the agricultural  prod-
 22    uct purchased to maintain the value, health or status of his livestock without
 23    actually increasing the value of his agricultural product.
                                                                        
 24        SECTION  2.  That  Section 45-1803, Idaho Code, be, and the same is hereby
 25    amended to read as follows:
                                                                        
 26        45-1803.  WHEN LIEN ATTACHES. The lien created by section  45-1802,  Idaho
 27    Code,  attaches  to the agricultural product and to the proceeds of the subse-
 28    quent sale of the agricultural product, livestock for which  the  agricultural
 29    product was used or the proceeds of the sale of such livestock, or any deriva-
 30    tive  products of such livestock, including milk. The lien shall attach on the
 31    date the agricultural product is physically delivered to the purchaser  or  on
 32    the  date  any final payment is due, and unpaid, to the agricultural commodity
 33    producer or agricultural commodity dealer  under  any  contract  or  bailment,
 34    whichever occurs last.
                                                                        
 35        SECTION  3.  That  Section 45-1805, Idaho Code, be, and the same is hereby
 36    amended to read as follows:
                                                                        
 37        45-1805.  PRIORITY OF LIEN. The lien created  by  section  45-1802,  Idaho
 38    Code,  is  preferred  to a lien or security interest in favor of a creditor of
 39    the purchaser, regardless of whether the creditor's lien or security  interest
                                                                        
                                           2
                                                                        
  1    attaches  to  the agricultural product or proceeds of the sale of the agricul-
  2    tural product, livestock for which the agricultural product was  used  or  the
  3    proceeds  of  the  sale  of such livestock, or any derivative products of such
  4    livestock, including milk, before or after the date on which the lien  created
  5    by section 45-1802, Idaho Code, attaches.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                             RS14033

Current law dealing with commodity dealer lien law, has been struck
down by three different court cases in the last four months. It was
presumed that a commodity lien on feed carried through to the animal
it was fed to. The court said that it only applies to the commodity,
i.e. the hay, until it is fed. This language clarifies that the lien
would follow the proceeds of the sale of the livestock, milk, or
derivative products.



                          FISCAL IMPACT

No fiscal impact to General Fund



Contact
Name:     Speaker of the House Bruce Newcomb
Phone:   332-1111
            
STATEMENT OF PURPOSE/FISCAL NOTE                         H 679