H 0211

H‑0211.4 _____________________________________________

HOUSE BILL 1503

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Representatives G. Chandler, Hatfield, Schoesler, Sump, Benson and Mastin

Read first time 01/29/2001. Referred to Committee on Agriculture & Ecology.

_1 AN ACT Relating to agricultural liens; and amending RCW

_2 60.11.010, 60.11.020, 60.11.030, 60.11.050, 60.11.130, 62A.9A-310,

_3 and 15.48.290.

_4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5 Sec. 1. RCW 60.11.010 and 2000 c 250 s 9A-824 are each amended to

_6 read as follows:

_7 As used in this chapter, the following terms have the meanings

_8 indicated unless the context clearly requires otherwise.

_9 (1) "Agricultural bailment contract" means any bailment

10 contract for increasing, growing, or raising an agricultural

11 product or products where the bailor retains title to the

12 agricultural products increased, grown, or raised including but

13 not limited to any agricultural products or progeny produced under

14 the contract. "Agricultural bailment contract" includes, but is not

15 limited to, a seed bailment contract under chapter 15.48 RCW.

16 (2) "Agricultural product" means (a) any crop including but not

17 limited to any seed, cuttings, stock, or similar materials

18 provided by a bailor to produce the crop; and (b) livestock, other

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_1 than horses, mules, cattle, or sheep, and including but not

_2 limited to any progeny of such livestock that are produced under

_3 an agricultural bailment contract.

_4 (3) "Bailee" means any tenant farmer or landowner, or both,

_5 who, for an agreed compensation, agrees under the terms of an

_6 agricultural bailment contract (a) to plant agricultural seeds,

_7 cuttings, stock, or similar materials furnished by the bailor, to

_8 care for and cultivate them, and to harvest and deliver to the

_9 bailor the agricultural product or products resulting therefrom;

10 or (b) to feed, raise, and care for livestock furnished by the

11 bailor for return to the bailor along with any progeny resulting

12 therefrom. "Bailee" includes, but is not limited to, a bailee under

13 chapter 15.48 RCW.

14 (4) "Bailor" means any contractor who delivers agricultural

15 seed, cuttings, stock, or similar materials or livestock to a

16 bailee under the terms of an agricultural bailment contract which

17 requires the bailor to pay the bailee the amount of compensation

18 agreed to in the contract for the bailee's services in (a)

19 planting agricultural seeds or similar materials, caring for and

20 cultivating them, and harvesting and delivering the resulting

21 agricultural products to the bailor; or (b) feeding, raising, and

22 caring for livestock furnished by the bailor for return to the

23 bailor along with any progeny therefrom. "Bailor" includes, but is

24 not limited to, a bailor under chapter 15.48 RCW.

25 (5) "Crop" means all products of the soil either growing or

26 cropped, cut, or gathered which require annual planting,

27 harvesting, or cultivating. A crop includes orchard crops, but does

28 not include vegetation produced by the powers of nature alone,

29 nursery stock, or vegetation intended as a permanent enhancement

30 of the land itself.

31 ((~~(2)~~)) (6) "Handler" means a person who prepares an orchard

32 crop for market for the account of, or as agent for, the producer

33 of the orchard crop, which preparation includes, but is not

34 limited to, receiving, storing, packing, marketing, selling, or

35 delivering the orchard crop; and who takes delivery of the orchard

36 crop from the producer of the orchard crop or from another

37 handler. "Handler" does not include a person who solely transports

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_1 the orchard crop from the producer or another handler to another

_2 person.

_3 ((~~(3)~~)) (7) "Landlord" means a person who leases or subleases

_4 to a tenant real property upon which crops are growing or will be

_5 grown.

_6 ((~~(4)~~)) (8) "Orchard crop" means cherries, peaches, nectarines,

_7 plums or prunes, pears, apricots, and apples.

_8 ((~~(5)~~)) (9) "Secured party" and "security interest" have the

_9 same meaning as used in the Uniform Commercial Code, Title 62A

10 RCW.

11 ((~~(6)~~)) (10) "Supplier" includes, but is not limited to, a

12 person who furnishes seed, furnishes and/or applies commercial

13 fertilizer, pesticide, fungicide, weed killer, or herbicide,

14 including spraying and dusting, upon the land of the grower or

15 landowner, or furnishes any work or labor upon the land of the

16 grower or landowner including tilling, preparing for the growing

17 of crops, sowing, planting, cultivating, cutting, digging,

18 picking, pulling, or otherwise harvesting any crop grown thereon,

19 or in gathering, securing, or housing any crop grown thereon, or

20 in threshing any grain or hauling to any warehouse any crop,

21 including grain, grown thereon.

22 ((~~(7)~~)) (11) "Lien debtor" means the person who is obligated or

23 owes payment or other performance. If the lien debtor and the owner

24 of the property encumbered by the crop lien or security interest

25 are not the same person, "lien debtor" means the owner of the

26 property encumbered by the crop lien or security interest.

27 ((~~(8)~~)) (12) "Lien holder" means a person who, by statute, has

28 acquired a lien on the property of the lien debtor, or such

29 person's successor in interest.

30 Sec. 2. RCW 60.11.020 and 2000 c 250 s 9A-825 are each amended to

31 read as follows:

32 (1) A landlord whose lease or other agreement with the tenant

33 provides for cash rental payment shall have a lien upon all crops

34 grown upon the demised land in which the landlord has an interest

35 for payment of no more than one year's rent, where the last or

36 only payment of such one year's rent is due or will become due

37 within six months following the last day of harvest of the crops

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_1 encumbered by the crop lien. A landlord with a crop share agreement

_2 has an interest in the growing crop which shall not be encumbered

_3 by crop liens except as provided in subsections (2) and (3) of

_4 this section.

_5 (2) A supplier shall have a lien upon all crops for which the

_6 supplies are used or applied for payment of the purchase price of

_7 the supplies and/or services performed: PROVIDED, That the

_8 landlord's interest in the crop shall only be subject to the lien

_9 for the amount obligated to be paid by the landlord if prior

10 written consent of the landlord is obtained or if the landlord has

11 agreed in writing with the tenant to pay or be responsible for a

12 portion of the supplies and/or services provided by the lien

13 holder.

14 (3) A handler shall have a lien on all orchard crops delivered

15 by the lien debtor or another handler to the handler and on all

16 proceeds of the orchard crops for payment of: (a) All customary

17 charges for the ordinary and necessary handling of the orchard

18 crop, including but not limited to charges for transporting,

19 receiving, inspecting, materials and supplies furnished, washing,

20 waxing, sorting, packing, storing, promoting, marketing, selling,

21 advertising, insuring, or otherwise handling the lien debtor's

22 orchard crop; and (b) reasonable cooperative per unit retainages,

23 and for all governmental or quasi-governmental assessments imposed

24 by statute, ordinance, or government regulation. Charges shall not

25 include direct or indirect advances or extensions of credit to a

26 lien debtor.

27 (4) A tenant farmer or landowner who is a bailee shall have a

28 lien, called a producer's lien, upon all agricultural products

29 grown, raised, or produced by the bailee under an agricultural

30 bailment contract and on all proceeds of the agricultural products

31 for the payment of the amount of compensation agreed to in the

32 contract for the services performed by the bailee under the

33 contract.

34 Sec. 3. RCW 60.11.030 and 2000 c 250 s 9A-826 are each amended to

35 read as follows:

36 (1) Upon the later of both: (a) Execution of the lease or other

37 agreement, or commencement of delivery of such supplies, and/or of

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_1 provision of such services giving rise to the crop lien; and (b)

_2 filing a financing statement as required by RCW 62A.9A-310 and

_3 subsection (3) of this section, the crop liens described in RCW

_4 60.11.020 (1) and (2) shall become effective and attach to the

_5 subject crop for all sums then and thereafter due and owing the

_6 lien holder under this chapter, and those liens shall continue in

_7 all identifiable cash proceeds of the crop.

_8 (2) Upon the delivery of an orchard crop by the lien debtor or

_9 another handler to a handler without the necessity of filing, the

10 crop lien described in RCW 60.11.020(3) shall become effective and

11 attach to and be perfected in the delivered orchard crop for all

12 sums then and thereafter due and owing the lien holder under this

13 chapter, and the lien shall continue and be perfected in all

14 proceeds of the orchard crop. Upon filing a financing statement as

15 required by RCW 62A.9A-310 and subsection (3) of this section, an

16 effective crop lien described in RCW 60.11.020(3) that has

17 attached to the delivered orchard crop shall be perfected.

18 (3) Except as provided in RCW 60.11.040(4) with respect to the

19 lien of a landlord, and except for the lien of a handler on

20 orchard crops as provided in RCW 60.11.020(3) and the producer's

21 lien as provided in RCW 60.11.020(4), the lien holder must file

22 the required financing statement during the period after the

23 commencement of delivery of such supplies and/or of provision of

24 such services, but before the completion of the harvest of the

25 crops for which the lien is claimed, or in the case of a lien for

26 furnishing work or labor, before the end of the fortieth day after

27 the cessation of the work or labor for which the lien is claimed.

28 If the lien holder under the crop liens described in RCW 60.11.020

29 (1) or (2) is to be allowed costs, disbursements, and attorneys'

30 fees, the lien holder must also mail a copy of such financing

31 statement to the last known address of the debtor by certified

32 mail, return receipt requested, within ten days after filing the

33 financing statement.

34 (4) Upon the delivery of agricultural seed or stock or

35 livestock by a bailor to a bailee and without necessity of filing,

36 the producer's lien described in RCW 60.11.020(4) shall become

37 effective and attach to and be perfected in the seed, cuttings,

38 stock, or similar materials or livestock and in any resulting

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_1 agricultural products produced under the agricultural bailment

_2 contract for all sums then and thereafter due and owing the bailee

_3 as lien holder under this chapter, and the lien shall continue and

_4 be perfected in all proceeds of the seed, cuttings, stock, or

_5 similar materials or livestock or any resulting agricultural

_6 products produced under the agricultural bailment contract.

_7 Sec. 4. RCW 60.11.050 and 2000 c 250 s 9A-828 are each amended to

_8 read as follows:

_9 (1) Except as provided in subsections (2), (3), (4), ((~~and~~))

10 (5), and (6) of this section, conflicting liens and security

11 interests in crops and their proceeds shall rank in accordance

12 with the time of filing.

13 (2) The lien created in RCW 60.11.020(2) in favor of any person

14 who furnishes any work or labor upon the land of the grower or

15 landowner shall be preferred and prior to any other lien or

16 security interest upon the crops to which they attach including

17 the liens described in subsections (3), (4), ((~~and~~)) (5), and (6)

18 of this section.

19 (3) The producer's lien created in RCW 60.11.020(4) in favor of

20 a bailee is preferred and prior to a lien or security interest

21 described in subsection (4), (5), or (6) of this section and to

22 any other lien or security interest upon the agricultural products

23 to which they attach except the liens in favor of a person who

24 furnishes work or labor upon the land of the grower or landlord.

25 (4) The lien created in RCW 60.11.020(3) in favor of handlers

26 is preferred and prior to a lien or security interest described in

27 subsection ((~~(4) or~~)) (5) or (6) of this section and to any other

28 lien or security interest upon the orchard crops to which they

29 attach except the liens in favor of a person who furnishes work or

30 labor upon the land of the grower or landlord. Whenever more than

31 one handler holds a handler's lien created by RCW 60.11.020(3) in

32 the same orchard crop, unless the affected parties otherwise agree

33 in writing, the later of the liens to attach has priority over all

34 previously attached handlers' liens created by RCW 60.11.020(3).

35 ((~~(4)~~)) (5) A lien or security interest in crops otherwise

36 entitled to priority pursuant to subsection (1) of this section

37 shall be subordinate to a later perfected lien or security

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_1 interest incurred to produce the crop to the extent that

_2 obligations secured by such earlier perfected security interest or

_3 lien were not incurred to produce such crops.

_4 ((~~(5)~~)) (6) A lien or security interest in crops otherwise

_5 entitled to priority pursuant to subsection (1) of this section

_6 shall be subordinate to a properly perfected landlord's lien.

_7 Sec. 5. RCW 60.11.130 and 2000 c 250 s 9A-833 are each amended to

_8 read as follows:

_9 Judicial foreclosure or summary procedure as provided in RCW

10 60.11.060 shall be brought within twenty-four calendar months

11 after filing the financing statement for the lien, except: (1) In

12 the case of a landlord lien which shall be twenty-four calendar

13 months from the date of default on the lease((~~, and~~)); (2) in the

14 case of a handler's lien on a given orchard crop which shall be

15 twenty-four calendar months from the date of default on payment of

16 the charges described in RCW 60.11.020(3) attributable to that

17 orchard crop; and (3) in the case of a producer's lien on a given

18 agricultural product which shall be twenty-four calendar months

19 from the date of default on payment of the charges described in

20 RCW 60.11.020(4) attributable to that product. Upon expiration of

21 such time, the claimed lien shall expire.

22 Sec. 6. RCW 62A.9A-310 and 2000 c 250 s 9A-310 are each amended to

23 read as follows:

24 (a) General rule: Perfection by filing. Except as otherwise

25 provided in subsections (b) and (d) of this section and RCW

26 62A.9A‑312(b), a financing statement must be filed to perfect all

27 security interests and agricultural liens.

28 (b) Exceptions: Filing not necessary. The filing of a financing

29 statement is not necessary to perfect a security interest:

30 (1) That is perfected under RCW 62A.9A‑308 (d), (e), (f), or

31 (g);

32 (2) That is perfected under RCW 62A.9A‑309 when it attaches;

33 (3) In property subject to a statute, regulation, or treaty

34 described in RCW 62A.9A‑311(a);

35 (4) In goods in possession of a bailee which is perfected under

36 RCW 62A.9A‑312(d) (1) or (2);

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_1 (5) In certificated securities, documents, goods, or

_2 instruments which is perfected without filing or possession under

_3 RCW 62A.9A‑312 (e), (f), or (g);

_4 (6) In collateral in the secured party's possession under RCW

_5 62A.9A‑313;

_6 (7) In a certificated security which is perfected by delivery

_7 of the security certificate to the secured party under RCW

_8 62A.9A‑313;

_9 (8) In deposit accounts, electronic chattel paper, investment

10 property, or letter-of-credit rights which is perfected by control

11 under RCW 62A.9A‑314;

12 (9) In proceeds which is perfected under RCW 62A.9A‑315; or

13 (10) That is perfected under RCW 62A.9A‑316.

14 (c) Assignment of perfected security interest. If a secured

15 party assigns a perfected security interest or agricultural lien,

16 a filing under this Article is not required to continue the

17 perfected status of the security interest against creditors of and

18 transferees from the original debtor.

19 (d) Further exception: Filing not necessary for handler's lien.

20 The filing of a financing statement is not necessary to perfect

21 the agricultural lien of a handler on orchard crops as provided in

22 RCW 60.11.020(3) or to perfect a producer's lien as provided in

23 RCW 60.11.020(4).

24 Sec. 7. RCW 15.48.290 and 1967 c 114 s 16 are each amended to read

25 as follows:

26 All payments of money required by the terms of a seed bailment

27 contract to be made by a bailor to a bailee shall be subject to

28 ((~~security interests perfected as required by chapter 62A.9 RCW,~~

29 ~~as amended, and all~~)) agricultural liens provided for and

30 perfected in accordance with Title 60 RCW.

‑‑‑ END ‑‑‑

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