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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
]]]] 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
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