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House Bill 0375

Florida House of Representatives - 1997 HB 375 By Representatives Bronson, Flanagan, Mackey, Minton, Spratt, Stabins, Sembler, Fuller and Ziebarth 1 A bill to be entitled 2 An act relating to liens; creating s. 713.656, 3 F.S.; providing for liens for bulk feed; 4 providing definitions; providing for a lien for 5 distributors registered under s. 580.041, F.S., 6 of the Florida Commercial Feed Law who furnish 7 bulk feed for the unpaid portion of such bulk 8 feed; providing an exception; requiring feeders 9 to obtain a "feed bond" of not less than 10 $25,000; providing a presumption; providing for 11 the term of the lien; providing for perfection 12 of the lien; providing for notice; requiring 13 the clerk of the circuit court to file a claim 14 of lien and charge a fee therefor; providing 15 for a termination statement upon the 16 satisfaction of the lien; providing an 17 effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Section 713.656, Florida Statutes, is 22 created to read: 23 713.656 Liens for bulk feed, etc., furnished for 24 animals and livestock.-- 25 (1) For purposes of this section, the term: 26 (a) "Livestock" means beef cattle, dairy cattle, 27 horses, sheep, goats, swine, poultry, and ratites. 28 (b) "Cooperative" means a cooperative as defined in s. 29 580.031(2). 30 31 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 375 166-163-97 1 (c) "Proceeds" means the amounts received by a lien 2 debtor, before a deduction for taxes, fees, or assessments or 3 a deduction made under a court order, from the sale of: 4 1. The livestock for which the animal feed was used; 5 2. Meat, milk, skins, wool, or other products derived 6 from that livestock; or 7 3. Issue born to females of that livestock; 8 9 but does not include amounts due or owing to a cooperative or 10 retained by a cooperative. 11 (d) "Feeder" means a person who for compensation feeds 12 commercial feed to livestock which is owned in whole or in 13 part by another. 14 (e) "Bulk feed" means commercial feed or feedstuff as 15 defined in chapter 580 which is sold in lots of not less than 16 1 ton. 17 (2) A lien is granted in favor of a distributor 18 registered pursuant to s. 580.041 who furnishes bulk feed as 19 defined in chapter 580 for the unpaid portion of the price of 20 the bulk feed upon any livestock that consume the bulk feed 21 and upon the proceeds of the livestock. 22 (3) All livestock that are accustomed to consume bulk 23 feed of the type delivered and which are at the time of the 24 delivery of the bulk feed upon the premises to which the 25 delivery is made are determined prima facie to have consumed 26 the bulk feed. 27 (4) The lien shall not attach for bulk feed which is 28 found to violate the provisions of s. 580.131, provided the 29 lien debtor notifies the feed distributor in writing within 10 30 days after delivery of the feed that the feed has been or will 31 be tested by a certified laboratory to determine compliance 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 375 166-163-97 1 with s. 580.131. The certified laboratory results shall be 2 completed and provided to the feed distributor within 30 days 3 after the notice. If the laboratory results indicate that the 4 feed was in compliance with s. 580.131, the lien shall attach. 5 (5) In the case of livestock being fed by a feeder as 6 defined herein, the feeder shall provide a "feed bond" of not 7 less than $25,000 to cover the cost of bulk feed. The lien 8 granted pursuant to this section shall attach to the bond and 9 not to the livestock. 10 (6) The lien granted pursuant to this section shall 11 remain valid and enforceable for a period of 1 year from the 12 date of the delivery of such bulk feed. The lien shall be 13 enforced in the manner provided for in this part and part V of 14 chapter 679, except that s. 679.503 shall not apply. 15 (7) The liens granted pursuant to this section shall 16 be perfected upon filing a notice of lien with the clerk of 17 the circuit court as provided in s. 679.401. A lien so 18 perfected shall be superior in priority only to those claims, 19 liens, and security interests that are unperfected or that are 20 perfected subsequent to the time that the notice of claim of 21 lien is filed with the clerk of the circuit court for the 22 county to which the bulk feed is delivered. 23 (8) A person claiming a lien under this chapter must 24 have provided notice of the provisions of this chapter, before 25 or at the time of purchase, either generally to purchasers of 26 animal feed as part of the lien claimant's normal business 27 practices or specifically to the lien debtor. Notice provided 28 under this subsection must read, to the extent applicable, 29 substantially as follows: "The sale of animal feed on credit 30 is subject to s. 713.656, F.S. Failure to pay the agreed-upon 31 or reasonable charges for the feed may result in the 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 375 166-163-97 1 attachment of a lien to livestock or the proceeds of the 2 livestock for which the feed is used or the proceeds of the 3 animal products produced from the livestock." A potential 4 lien claimant may satisfy the requirements of this subsection: 5 (a) By printing or stamping the notice on credit 6 applications filled out by purchasers; or 7 (b) For future purchases by purchasers who are not 8 notified on the credit application by printing or stamping the 9 notice on an invoice or on a statement sent by separate cover. 10 (9) The notice of claim of lien must be filed on a 11 form that satisfies the requirements of a financing statement 12 under s. 679.402, except that: 13 (a) The lien claimant may be identified either as a 14 lien claimant or as a secured party; 15 (b) The form must be signed by the lien claimant but 16 is not required to be signed by the lien debtor; and 17 (c) The location and type of livestock must be entered 18 in the space for the description of the collateral, along with 19 the date or dates of the respective deliveries of bulk feed 20 for which a person claiming a lien under this section is 21 unpaid. 22 (10)(a) The clerk of the circuit court shall note the 23 date and time of filing and shall index such notices of claim 24 of lien with financing statements filed in accordance with s. 25 679.402. The clerk of the circuit court shall charge a fee 26 for such filing as provided in s. 679.4011 and chapter 28. 27 (b) Within 30 days after the satisfaction of a 28 perfected lien under this section or within 10 days after 29 written demand of the debtor made after the satisfaction of a 30 perfected lien under this section, the lien claimant shall 31 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 375 166-163-97 1 file with the clerk of the circuit court a termination 2 statement in the form and for the fee provided in s. 679.404. 3 Section 2. This act shall take effect October 1, 1997. 4 5 ***************************************** 6 SENATE SUMMARY 7 Provides a lien in favor of a distributor that furnishes bulk feed for livestock for the unpaid portion of the 8 price of the bulk feed, upon livestock that consume the bulk feed, and upon the proceeds of the livestock. 9 Provides definitions. Such a lien does not attach for bulk feed that is determined by a certified laboratory to 10 violate s. 580.131, F.S. Requires a feeder to obtain a "feed bond" of not less than $25,000. Requires a person 11 claiming such lien to provide as a normal business practice notice of the provisions of ch. 713, F.S., to 12 purchasers of animal feed. Specifies language for such notice. Prescribes the term of the lien and procedures 13 for the perfection of the lien. Requires the clerk of the circuit court to record a claim of lien and to charge a 14 fee for services provided. Requires the lien claimant to file with the clerk a termination statement upon 15 satisfaction of the lien. The form of the statement and the fees to be charged are as provided in s. 679.404, 16 F.S. 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5