ORIGINAL HOUSE ENGROSSED

BILL NO. 0066

ENROLLED ACT NO. 84, HOUSE OF REPRESENTATIVES

FIFTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING

2001 GENERAL SESSION

AN ACT relating to producer's liens; creating a lien on
farm products sold or grown for another or held for
processing or storage; requiring a lienholder to give
notice of the lien; specifying procedures; specifying
waivers in contracts of the terms of this act as
unenforceable; allowing for recovery of damages by a
producer; providing for a repeal; specifying applicability;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.  W.S. 29-8-101 through 29-8-109 are created
to read:

CHAPTER 8

AGRICULTURAL PRODUCER'S LIENS

29-8-101. Definitions.

(a) As used in this article:

(i) "Commodity dealer" means a person who
engages in a business involving or, as part of the
business, participates in buying, exchanging, negotiating
or soliciting the sale, resale, exchange, production or
transfer of any farm product in the state of Wyoming. The
term does not include:

(A) A person engaged solely in storing,
shipping or handling farm products for hire;

(B) A person who buys farm products from a
licensed commodity dealer;

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(C) A person who does not purchase more
than thirty thousand dollars ($30,000.00) worth of farm
products from producers during a licensing year;

(D) A person who is the producer of farm
products that the person actually plants, nurtures and
harvests;

(E) A person whose trading in farm products
is limited to trading in commodity futures on a recognized
futures exchange; or

(F) A person who buys farm products used
exclusively for the feeding of livestock and not for
resale.

(ii) "Contractor" means a person who owns a farm
product that is produced by a producer according to a
contract;

(iii) "Farm products" means all crops, crop
products, plants or portions thereof, whether or not they
are cleaned, processed, treated, reconditioned, rolled,
mixed or combined in any fashion. Farm products shall not
mean livestock;

(iv) "Person" means an individual, trust,
partnership, business trust, corporation or unincorporated
association or any other legal or commercial entity;

(v) "Processor" means any person engaged in the
business of processing or manufacturing any farm product
and who takes possession or control of any farm product for
the purpose of processing, cleaning, selling or storing it;

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(vi) "Producer" means the owner, tenant or
operator of land located in the state of Wyoming who has an
interest in or receives all or part of the proceeds from
the assignment, sale, transfer, exchange or production of
farm products grown or produced on that land;

(vii) "Public warehouse" or "warehouse" means an
elevator, mill, warehouse, subterminal grain warehouse,
public warehouse or other structure or facility in which,
for compensation, farm products are received for storage,
handling, processing or shipment. The term includes
facilities that commingle different lots of farm products;

(viii) "This act" means W.S. 29-8-101 through
29-8-109.

29-8-102. Producer's liens.

(a) W.S. 29-1-101 through 29-7-301 shall not apply to
liens filed under this act.

(b) A producer has a lien on all farm products grown
or produced by it and on all proceeds from the assignment,
sale, transfer, exchange or other disposition thereof until
the producer is paid in full all amounts due the producer
for its assignment, sale, transfer, exchange, other
disposition or production of the farm products.

29-8-103. Notice; filing of notice of claim;
contents.

(a) A lien created under W.S. 29-8-102 attaches when
the farm product is delivered from the producer to the
processor, contractor, warehouse operator or commodity
dealer.

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(b) A person claiming a lien created by this act
shall file a written notice of claim of lien with the
office of the secretary of state not later than one hundred
eighty (180) days after the lien attaches.

(c) The notice of claim of lien required under
subsection (b) of this section shall be in the form of a
financing statement acceptable for filing by the office of
the secretary of state. The signature of the processor,
contractor, warehouse operator or commodity dealer shall
not be required. The written notice of claim filed under
subsection (c) of this section shall contain:

(i) A true statement of the lienholder's claim;

(ii) A description of the farm product delivered
sufficient for identification;

(iii) The lienholder's name, address and phone
number, establishing them as a secured party; and

(iv) The name and address of the processor,
contractor, warehouse operator or commodity dealer,
establishing them as the debtor.

(d) The secretary of state shall keep a record of
notices filed under this section under an index of
agricultural liens.

(e) The secretary of state shall charge a fee not
exceeding the cost of providing the service for filing of
notices and requests for copies of such notices.

(f) When a lienholder files a notice of claim of lien
as required by this section, the lienholder shall send a
copy of the notice to the processor, contractor, warehouse

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operator or commodity dealer by registered or certified
mail.

(g) When a lienholder files a notice of claim of lien
as required by this section the lienholder shall send a
copy of the notice to all holders of security interests in
the farm product described in the notice of claim who duly
perfected such security interests by filing notice thereof
with the secretary of state. The notice shall be mailed to
holders of perfected security interests within thirty (30)
days after the date of filing the notice of claim.

(h) A lien which has attached under subsection (a) of
this section is perfected upon the completion of the
requirements of subsections (a) through (h) of this
section. If a person entitled to a lien under this section
does not properly file a notice of claim or properly notify
all holders of security interests of the lien within the
time required by this section, the person waives the right
to the lien.

29-8-104. Extent of lien; priority.

(a) The lien shall be to the extent of:

(i) The agreed price, if any, pursuant to the
terms of any contract or for the market value at the time
of transfer of ownership if not agreed;

(ii) If the farm product has not been sold or
processed by the processor, contractor, warehouse operator
or commodity dealer the lien shall be on the farm product;

(iii) If the farm product is sold or processed
by the processor, contractor, warehouse operator or
commodity dealer the lien shall be on the cash proceeds

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from the sale. For purposes of this paragraph, cash
proceeds held by the processor, contractor, warehouse
operator or commodity dealer shall be deemed to be cash
proceeds from the sale regardless of whether it is
identifiable cash proceeds;

(iv) If the farm product is processed by the
processor, contractor, warehouse operator or commodity
dealer and there is no property of the type described in
paragraph (ii) or (iii) of this subsection to which the
lien can attach, then the lien shall extend to any property
of the processor, contractor, warehouse operator or
commodity dealer that may be subject to a security interest
as provided by W.S. 34.1-9-102.

(b) A perfected lien under paragraph (a)(ii) or (iii)
of this section shall be preferred to, and have priority
over, a lien or security interest in favor of a creditor of
the processor, contractor, warehouse operator or commodity
dealer regardless of the time when the creditor's lien or
security interest attached to the farm products or the
proceeds thereof or therefrom. The priority of a perfected
lien under paragraph (a)(iv) of this section shall be
determined by the date on which the lien is filed as
required by this act, and it shall not have priority over
other perfected liens on the same property which have been
perfected prior to the filing date.

29-8-105. Duration.

(a) A perfected lien created by this act remains in
effect until either the lienholder receives the full amount
due it for the farm products, including reasonable costs
and attorneys' fees incurred in enforcing the lien, or for
a period of two hundred ten (210) days from the date the
lien becomes perfected as provided in this act.

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(b) All actions to foreclose or enforce a lien under
this chapter shall be commenced within two hundred forty
(240) days after the filing of the lien statement. No lien
shall continue to exist except by virtue of the provisions
of this chapter for more than two hundred forty (240) days
after the lien is filed unless an action to foreclose the
lien is instituted.

(c) Whenever any debt which is a lien pursuant to
this act is paid and satisfied, the lien claimant shall
file notice of satisfaction of the claim of lien in the
secretary of state's office.

(d) In addition to any actual damages, any creditor
refusing or neglecting to enter satisfaction within thirty
(30) days after payment as provided by subsection (c) of
this section and after having received by certified or
registered mail a request in writing for the entering of
satisfaction is liable for damages of not less than one-
tenth of one percent (.10%) of the original principal
amount of the debt per day until such time as the
lienholder enters satisfaction. The additional damages
authorized by this section shall not exceed one hundred
dollars ($100.00) per day.

29-8-106. Waivers unenforceable.

Any provision of a contract which waives a producer's right
or an obligation of a party established by this act is void
and unenforceable. This section does not affect other
provisions of the contract or related document, policy or
agreement which can be given effect without the voided
provision.

29-8-107. Choice of law.

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Any condition, stipulation or provision requiring the
application of the law of another state in lieu of this act
is void and unenforceable.

29-8-108. Damages, fees, costs and injunctive relief.

(a) A producer who suffers damages because of a
violation of this act may obtain appropriate legal and
equitable relief, including damages, as a suit in common
law pursuant to the Wyoming Rules of Civil Procedure.

(b) In any action by a producer to enforce a
perfected lien created by this act, the court shall award
the producer who is the prevailing party reasonable
attorneys' fees and other litigation costs and expenses.
The payment of any such award shall be secured in the same
manner as a lien created and perfected under this act.

(c) In order to obtain injunctive relief, a producer
is not required to post a bond, prove the absence of an
adequate remedy at law, or show the existence of special
circumstances, unless the court for good cause otherwise
orders. The court may order any form of prohibitory or
mandatory relief that is appropriate under principles of
equity, including but not limited to, issuing a temporary
or permanent restraining order.

29-8-109. Applicability of act; repeal.

(a) This act applies to contracts executed, entered
into, renewed or substantively amended on or after July 1,
2001.

(b) This act is repealed effective July 1, 2003.

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Section 2.  W.S. 29-1-305(c), 29-5-104, 29-7-106(b)
and 29-7-203 are amended to read:

29-1-305. Priority of liens.

(c) Any lien, security interest or mortgage which has
been perfected upon real or personal property or upon a
leasehold interest prior to the commencement of any
construction work or repair of the premises or property
except as provided by chapter 7 of this title or W.S.
29-8-102 relating to liens for the production of farm
products under contracts executed, entered into, renewed or
substantively amended on or after July 1, 2001, shall have
priority.

29-5-104. Priority of lien.

The lien for work performed as specified in W.S. 29-5-102
has precedence over any mortgage or encumbrance except
those created by W.S. 29-8-102 relating to liens for the
production of farm products under contracts executed,
entered into, renewed or substantively amended after July
1, 2001.

29-7-106. Priority of lien.

(b) If the property is not in possession of the lien
claimant, a lien under W.S. 29-7-101 through 29-7-106 shall
be prior to all other liens, encumbrances and security
interests, except for a subsequent lien claimant in
possession under W.S. 29-7-101 through 29-7-106 or a lien
created under W.S. 29-8-102 relating to liens for the
production of farm products under contracts executed,
entered into, renewed or substantively amended after July
1, 2001.

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29-7-203. Priority of liens.

The lien herein given is prior to and shall take precedence
over any lien or encumbrance given subsequent to the
service unless the lien is created pursuant to W.S.
29-8-102 relating to liens for the production of farm
products under contracts executed, entered into, renewed or
substantively amended after July 1, 2001.

Section 3. This act is effective July 1, 2001.

(END)

Speaker of the House President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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