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Key: (1) language to be deleted (2) new language

                            CHAPTER 191-S.F.No. 2437 
                  An act relating to farm products; regulating liens and 
                  financing statements; establishing filing 
                  requirements; setting fees; appropriating money; 
                  amending Minnesota Statutes 2002, sections 336A.01; 
                  336A.02; 336A.03; 336A.04; 336A.05; 336A.06; 336A.07; 
                  336A.08; 336A.09; 336A.10; 336A.11, subdivisions 1, 2; 
                  336A.12; 336A.13; proposing coding for new law in 
                  Minnesota Statutes, chapter 336A; repealing Minnesota 
                  Rules, parts 8265.0100; 8265.0200; 8265.0300; 
                  8265.0400; 8265.0500; 8265.0600. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 336A.01, is 
        amended to read: 
           336A.01 [DEFINITIONS.] 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to this chapter. 
           Subd. 2.  [BUSINESS DAY.] "Business day" means a weekday on 
        which government offices are open for business.  Business day 
        does not include state or federal holidays, Saturdays, or 
        Sundays. 
           Subd. 2. 3.  [BUYER IN THE ORDINARY COURSE OF BUSINESS.] 
        "Buyer in the ordinary course of business" means a person who, 
        in the ordinary course of business, buys farm products from a 
        person engaged in farming operations who is in the business of 
        selling farm products. 
           Subd. 3. 4.  [COMMISSION MERCHANT.] "Commission merchant" 
        means a person engaged in the business of receiving a farm 
        product for sale on commission or for or on behalf of another 
        person. 
           Subd. 4. 5.  [COMPUTERIZED FILING SYSTEM.] "Computerized 
        filing system" means the system created by the secretary of 
        state with separate programs for filing and giving notice of 
        effective financing statements and farm products statutory liens.
           Subd. 6.  [CROP YEAR.] "Crop year" means: 
           (1) for a crop, the calendar year in which it is harvested 
        or to be harvested; 
           (2) for animals, the calendar year in which they are born 
        or acquired; and 
           (3) for poultry or eggs, the calendar year in which they 
        are sold or to be sold. 
           Subd. 7.  [DEBTOR.] "Debtor" means an individual or other 
        legal entity that has borrowed money from or is otherwise 
        indebted to a lienholder or secured party and whose farm 
        products are subject to a farm products statutory lien created 
        by operation of law or a security interest, to secure payment of 
        the obligation. 
           Subd. 5. 8.  [EFFECTIVE FINANCING STATEMENT.] "Effective 
        financing statement" means an original or reproduced copy of an 
        original a statement that meets the requirements of section 
        336A.03. 
           Subd. 6. 9.  [FARM PRODUCT.] "Farm product" means an 
        agricultural commodity, a species of livestock used or produced 
        in farming operations, or a product of a crop or the livestock 
        in its unmanufactured state, that is in the possession of a 
        person engaged in farming operations.  
           Subd. 7. 10.  [FARM PRODUCT DEALER.] "Farm product dealer" 
        means a buyer in the ordinary course of business, a commission 
        merchant, or a selling agent.  
           Subd. 8. 11.  [FARM PRODUCTS STATUTORY LIEN.] "Farm 
        products statutory lien" means a lien on farm products which is 
        given by statute or other rule of law for services or 
        materials and includes an agricultural lien as defined in 
        sections 336.9-102(a)(5); 514.963, subdivision 3; and 514.965, 
        subdivision 2; and an agricultural producer's lien as provided 
        in section 514.945. 
           Subd. 9. 12.  [FILING OFFICE.] "Filing office" means the 
        office of the county recorder or the Office of the Secretary of 
        State. 
           Subd. 10. 13.  [FILING OFFICER.] "Filing officer" means a 
        county recorder, the secretary of state, or an agent of a county 
        recorder or the secretary of state authorized to accept filings. 
           Subd. 14.  [LIENHOLDER.] "Lienholder" means an individual 
        or other legal entity who has the right to collect money from a 
        debtor and who has a farm products statutory lien. 
           Subd. 11. 15.  [LIEN NOTICE.] "Lien notice" means an 
        original or reproduced copy of an original a statement that 
        meets the requirements of section 336A.03. 
           Subd. 16.  [MONTHLY LIST.] "Monthly list" means information 
        about debtors, secured parties, lienholders, and farm products 
        that is produced by the secretary of state and distributed once 
        a month in the form of master or partial master lists. 
           Subd. 12. 17.  [PERSON.] "Person" means an individual, 
        partnership, corporation, trust, or other business entity. 
           Subd. 18.  [SECURED PARTY.] "Secured party" means an 
        individual or other legal entity that has received a security 
        interest in farm products to secure repayment of the obligation 
        owed to it. 
           Subd. 13. 19.  [SECURITY INTEREST.] "Security interest" 
        means an interest in farm products that secures payment or 
        performance of an obligation.  
           Subd. 14. 20.  [SELLING AGENT.] "Selling agent" means a 
        person, other than a commission merchant, who is engaged in the 
        business of negotiating the sale and purchase of a farm product 
        on behalf of a person engaged in farming operations.  
           Sec. 2.  Minnesota Statutes 2002, section 336A.02, is 
        amended to read: 
           336A.02 [SPECIFICATION OF FARM PRODUCTS.] 
           Subdivision 1.  [LIST OF PRODUCTS.] The secretary of state 
        shall, by rule, determine which specific farm products will be 
        included in the computerized filing and notification system.  
        Consideration shall be given to the value of the product sold 
        within the state and its marketing system.  The computerized 
        filing system must provide information about the following farm 
        products: 
           (1) wheat/durum; 
           (2) alfalfa; 
           (3) barley; 
           (4) oats; 
           (5) rye; 
           (6) sorghum; 
           (7) hay; 
           (8) flax; 
           (9) sunflowers; 
           (10) field corn; 
           (11) silage; 
           (12) canola; 
           (13) soybeans; 
           (14) dry edible beans; 
           (15) green beans; 
           (16) snap beans; 
           (17) green lima beans; 
           (18) sweet corn; 
           (19) green peas; 
           (20) potatoes; 
           (21) carrots; 
           (22) onions; 
           (23) cucumbers; 
           (24) sugar beets; 
           (25) wool; 
           (26) milk; 
           (27) eggs; 
           (28) cheese; 
           (29) apples; 
           (30) honey/bees wax; 
           (31) cattle/calves; 
           (32) hogs/pigs; 
           (33) sheep/lambs; 
           (34) horses; 
           (35) goats; 
           (36) chickens; 
           (37) broilers; 
           (38) turkeys; 
           (39) mink; 
           (40) fish; 
           (41) wild rice; and 
           (42) bison. 
           Subd. 2.  [CROPS GROWN FOR SEED.] Information about the 
        crops listed in subdivision 1 includes information on crops 
        grown for seed. 
           Sec. 3.  Minnesota Statutes 2002, section 336A.03, is 
        amended to read: 
           336A.03 [CONTENTS OF FINANCING STATEMENT OR LIEN NOTICE.] 
           Subdivision 1.  [SUBSTANTIAL COMPLIANCE.] An effective 
        financing statement or lien notice must substantially comply 
        with this section but may contain minor errors that are not 
        seriously misleading.  
           Subd. 1a.  [FORM.] (a) An effective financing statement is 
        an original or reproduced copy of the statement or an 
        electronically reproduced copy of the statement. 
           (b) A lien notice is an original or reproduced copy of the 
        notice or an electronically reproduced copy of the notice. 
           Subd. 2.  [CONTENTS.] (a) An effective financing statement 
        or lien notice must contain: 
           (1) a description of the farm products subject to the 
        security interest or farm products statutory lien, including the 
        amount of the farm products, if applicable, and a reasonable 
        description of the location of the property, including the name 
        of the county, where the farm products are produced or located; 
           (2) the name and address of the secured party or the person 
        entitled to the farm products statutory lien lienholder; 
           (3) the name and address of the debtor; 
           (4) in the case of an effective financing statement, the 
        Social Security number of the debtor, or, if the debtor is doing 
        business other than as an individual, the United States Internal 
        Revenue Service taxpayer identification number of the 
        debtor; and 
           (5) in the case of an effective financing statement, the 
        following statement with the appropriate blank checked: 
           "THIS EFFECTIVE FINANCING STATEMENT .... WILL ..... WILL 
        NOT BE TERMINATED WITHIN 30 DAYS OF THE DATE ON WHICH THE 
        OBLIGATION(S) IT SECURES NO LONGER EXIST."; and 
           (6) in the case of a lien notice, any payment obligations 
        imposed on the buyer, commission merchant, or selling agent as a 
        condition for waiver or release of the farm products statutory 
        lien. 
           (b) An effective financing statement or lien notice for one 
        or more debtors may cover more than one farm product located in 
        more than one county.  
           (c) The effective financing statement form and lien notice 
        may not be combined with a Uniform Commercial Code financing 
        statement form or format and must be filed on the form or in the 
        format designated by the secretary of state as an effective 
        financing statement/lien notice. 
           (d) An effective financing statement or the record 
        authorizing the filing of an effective financing statement must 
        contain the following statement, all in capital letters:  
           "THE INFORMATION CONTAINED IN THIS AN EFFECTIVE FINANCING 
           STATEMENT WILL BE SENT TO FARM PRODUCT BUYERS REGISTERED IN 
           MINNESOTA.  SALE OF FARM PRODUCTS TO THOSE BUYERS MAY 
           RESULT IN A CHECK BEING ISSUED PAYABLE JOINTLY TO BOTH THE 
           SELLER AND THE SECURED PARTY." 
           (e) A description of the farm products must include a 
        product code provided by the secretary of state and if 
        applicable, the amount of the farm product in those situations 
        where this information is needed to distinguish that part of the 
        farm product subject to the security interest or farm products 
        statutory lien from that part which is not.  The amount may be 
        described by the number of acres, the number of bushels, the 
        number of head, or any other accepted method of counting the 
        specific farm product.  A dollar amount may not be used as this 
        description. 
           (f) The name of the county where the farm products are 
        produced or located must be designated by using the two-digit 
        county code provided by the secretary of state. 
           (g) The party completing the effective financing statement 
        or lien notice is responsible for choosing and listing the farm 
        product and county codes on the document from the lists provided 
        by the secretary of state.  The filing officer shall reject 
        those documents that do not have farm product and county codes. 
           (h) The name of the secured party or lienholder must be the 
        full legal name of that person or other legal entity.  Business 
        names must be presented as they have been registered and only 
        those abbreviations appearing in the name as registered are 
        acceptable.  If the secured party or lienholder is an 
        individual, the person's full first name, middle initial, if 
        any, and full last name are the person's full legal name.  
        Nicknames or abbreviations of individual names, except a middle 
        initial, are not acceptable.  The single address must be a 
        mailing address and include a city, state, and zip code. 
           (i) The name of the debtor must be the full legal name of 
        the individual or other legal entity.  Business names must be 
        presented as they have been registered and only those 
        abbreviations appearing in the name as registered are 
        acceptable.  If the debtor is an individual, the person's full 
        first name, middle initial, if any, and full last name are the 
        person's full legal name.  Nicknames or abbreviations of 
        individual names, except a middle initial, are not acceptable.  
        The single address must be a mailing address and include a city, 
        state, and a zip code. 
           Subd. 3.  [SIGNATURES.] A lien notice must be signed, 
        authorized, or otherwise authenticated by the lienholder.  An 
        effective financing statement must be signed, authorized, or 
        otherwise authenticated by: 
           (1) the secured party; and 
           (2) the debtor.  
           Subd. 4.  [REQUIRED AMENDMENTS.] An effective financing 
        statement or lien notice must be amended in writing within three 
        months after material changes occur to reflect the material 
        changes.  To amend information contained on an effective 
        financing statement or lien notice, the existing effective 
        financing statement or lien notice must be terminated and a new 
        effective financing statement or lien notice filed.  The 
        amendment to an effective financing statement or a lien 
        statement must be signed, authorized, or otherwise 
        authenticated, and filed in the same manner required for the 
        original document. 
           Subd. 5.  [EFFECTIVE PERIOD.] (a) An effective financing 
        statement is effective for five years from the date of filing. 
        The effective period may be extended for additional periods of 
        five years as provided in section 336A.06. 
           (b) An effective financing statement is not effective after:
           (1) the effective financing statement lapses on the 
        expiration of the effective period; or 
           (2) a notice that the effective financing statement is 
        terminated is signed, authorized, or otherwise authenticated by 
        the secured party and filed in the filing office where the 
        original effective financing statement is filed. 
           (c) A lien notice is not effective after:  
           (1) five years from the date of filing; 
           (2) expiration of the period for commencing an action to 
        enforce the lien under applicable Minnesota law; or 
           (3) the obligation secured by the farm products statutory 
        lien no longer exists. 
           Sec. 4.  [336A.031] [SATELLITE OFFICES.] 
           Subdivision 1.  [AUTHORITY TO ESTABLISH.] The secretary of 
        state may establish satellite offices by written agreements with 
        public officials within the state for the purpose of meeting the 
        filing officer responsibilities described in this chapter.  The 
        terms of the agreement must be set by, and may be renewed by, 
        mutual agreement.  The agreement may be terminated upon 60 days' 
        notice.  The secretary must maintain a list of those public 
        officials authorized to act as satellite offices.  The secretary 
        of state must make this list available in an electronic format 
        and the list must be updated at least monthly. 
           Subd. 2.  [DUTIES.] Satellite offices must accept effective 
        financing statements and lien notices and respond to requests 
        for information pursuant to the provisions of this chapter.  A 
        filing made at a satellite office is filed and effective at the 
        same time and under the same rules provided for filing in any 
        other manner in the computerized filing system.  The filing 
        date, time, and file number for any effective financing 
        statement or lien notice accepted at a satellite office must be 
        automatically assigned by the computerized filing system 
        operated by the secretary of state, and the file number must be 
        the next available file number in the computerized filing system.
           Subd. 3.  [FILINGS ON OR AFTER JULY 1, 2001.] This 
        subdivision applies to all effective financing statements and 
        lien notices filed on or after July 1, 2001.  The secretary of 
        state shall maintain all effective financing statements and lien 
        notices and the database used to index them regardless of where 
        or how the statement or notice was filed.  The documents and 
        database must be housed in the computerized filing system.  
        These documents and data must be available from the secretary of 
        state or any satellite office.  Any filing office authorized to 
        be a part of the computerized filing system may respond to 
        requests for information, and the secretary of state shall 
        establish and administer a system to facilitate those responses. 
           Subd. 4.  [FILINGS BEFORE JULY 1, 2001.] This subdivision 
        applies to all effective financing statements and lien notices 
        filed before July 1, 2001.  The database containing the 
        information from the effective financing statements and lien 
        notices must be housed in the computerized filing system. 
           Subd. 5.  [PERFORMANCE OF FILING OFFICERS.] (a) All filing 
        officers must perform the responsibilities required under this 
        chapter and rules adopted pursuant to this chapter in a uniform 
        manner, whether services are provided by the secretary of state 
        or at a satellite office location.  Reports by citizens 
        describing concerns with performance of filing officer 
        responsibilities must be made to the secretary of state.  The 
        secretary of state is responsible for responding to reports 
        about performance in a manner the secretary of state determines 
        is appropriate. 
           (b) If, upon investigation of citizen reports described in 
        subdivision 1, the secretary of state determines that 
        performance by a satellite office of the filing officer 
        responsibilities has been so unsatisfactory that customer 
        service has been severely impaired, the secretary of state must 
        terminate the satellite office's status and ability to perform 
        filing office responsibilities.  If a satellite office's ability 
        to perform filing office responsibilities is terminated by the 
        secretary of state, the change in status must be posted in the 
        former satellite office and must also be publicly posted in the 
        county courthouse in the county in which the former satellite 
        office is located and must be made available in an electronic 
        format. 
           Subd. 6.  [RECORD RETENTION.] Once the image of a paper 
        record has been captured by the computerized filing system, the 
        secretary of state may remove or direct the removal from the 
        files and destroy the paper record. 
           Sec. 5.  Minnesota Statutes 2002, section 336A.04, is 
        amended to read: 
           336A.04 [FILING EFFECTIVE FINANCING STATEMENT OR LIEN 
        NOTICE.] 
           Subdivision 1.  [FILING LOCATION.] An effective financing 
        statement or lien notice must be filed in the computerized 
        filing system operated by the Office of the Secretary of State.  
        or the county recorder in the county of the debtor's residence 
        if the debtor is an individual or organization with residence in 
        this state.  If the debtor is not a resident of this state, the 
        effective financing statement or lien notice must be filed in 
        the Office of the Secretary of State.  Effective financing 
        statements and lien notices may be filed in writing or by any 
        other means authorized from a filing officer. 
           Subd. 2.  [EFFECTIVE FILING.] Presentation of an effective 
        financing statement or lien notice with the appropriate filing 
        fee to a filing officer or acceptance of the statement by a 
        filing officer constitutes filing under this chapter.  
           Subd. 3.  [FEES.] (a) The fee for filing and indexing a 
        standard form or format for a lien notice, effective financing 
        statement, or continuation statement, and stamping the date and 
        place of filing on a copy of the filed document furnished by the 
        filing party is $15 for up to two debtor names and $15 for each 
        additional name thereafter until June 30, 2005.  Effective July 
        1, 2005, the fee for each filing will be as follows: 
           (1) $15 for each filing made through the Web interface of 
        the Office of the Secretary of State; and 
           (2) $20 for each filing submitted in any other manner. 
           (b) A fee may not be charged for filing a termination 
        statement if the termination is filed within 30 days after 
        satisfaction of the lien or security interest.  Otherwise, the 
        fee is $10.  
           (c) A county recorder shall forward $5 of each filing fee 
        collected under this subdivision to the secretary of state.  
        Surcharge amounts shall be collected quarterly by the secretary 
        of state from each county recorder.  The secretary of state 
        shall send each county recorder an invoice at the end of each 
        fiscal quarter and each county recorder shall forward payment to 
        the secretary of state within 30 days of the date of the 
        invoice.  The surcharge amounts received from county recorders 
        and the surcharge amounts collected by the secretary of state's 
        office must be deposited in the state treasury and credited to 
        the general fund.  The balance of the Filing fees collected by a 
        county recorder satellite office must be deposited in the 
        general fund of the county in which the satellite office is 
        located.  
           Subd. 3a.  [STANDARD FORMS.] The standard form for a lien 
        notice, effective financing statement, continuation statement, 
        or termination statement is available from the filing office. 
           Subd. 4.  [FILING PROCEDURE.] (a) The filing officer shall 
        mark the effective financing statement or lien notice with a 
        consecutive file number and the date and hour of filing.  For 
        each effective financing statement, lien notice, continuation 
        statement, or termination statement filed in a filing office, 
        the filing office shall: 
           (1) assign a unique number to the filed record; 
           (2) create a record that bears the number assigned to the 
        filed record and the date and time of filing; 
           (3) maintain the filed record for public inspection; and 
           (4) index the filed record in accordance with paragraph (b).
           (b) The filing office shall maintain the original filed 
        document or a copy of the filed document in a format that meets 
        archival standards for public inspection as provided in rule by 
        the secretary of state. index an effective financing statement 
        or lien notice according to the name of the debtor and index all 
        filed records relating to the initial filing in a manner that 
        associates the related filings with the initial effective 
        financing statement or lien notice. 
           (c) The filing office shall index filed documents according 
        to the file number of the document. maintain a capability: 
           (1) to retrieve a record by the name of the debtor and by 
        the file number assigned to the initial effective financing 
        statement or lien notice to which the record relates; and 
           (2) to associate and retrieve with one another an initial 
        effective financing statement or lien notice and each filed 
        record relating to the initial effective financing statement or 
        lien notice as the case may be. 
           (d) The filing office may not remove a debtor's name from 
        the index until one year after the effectiveness of an effective 
        financing statement or lien notice naming the debtor lapses 
        under section 336A.03, subdivision 5, paragraph (b), clause (1), 
        or paragraph (c), clause (1). 
           (e) The filing office shall maintain a record of the 
        information provided in a filed effective financing statement or 
        lien notice for at least one year after the effectiveness of the 
        financing statement or lien notice has lapsed under section 
        336A.03, subdivision 5, paragraph (b), clause (1), or paragraph 
        (c), clause (1).  The record must be retrievable by using the 
        name of the debtor and by using the file number assigned to the 
        initial effective financing statement or lien notice to which 
        the record relates. 
           (f) Except to the extent that a statute governing 
        disposition of public records provides otherwise, the filing 
        office immediately may destroy any written record evidencing an 
        effective financing statement or lien notice.  However, if the 
        filing office destroys a written record, it shall maintain 
        another record of the effective financing statement or lien 
        notice which complies with paragraph (e). 
           Subd. 5.  [ENTERING FILING INFORMATION INTO COMPUTERIZED 
        FILING SYSTEM.] Each filing office shall enter the information 
        from the filed documents into the computerized filing system as 
        prescribed by the secretary of state.  
           The secretary of state shall record lien notices in the 
        computerized filing system in a manner that separately 
        identifies all farm products statutory liens, and shall ensure 
        that the computerized filing and notification system 
        distinguishes security interests covered by effective financing 
        statements from liens covered by lien notices to the extent 
        required by United States Code, title 7, section 1631, et seq., 
        and regulations adopted under those sections.  
           Subd. 6.  [VERIFICATION OF INFORMATION.] A person who has 
        filed an effective financing statement or lien notice may verify 
        the accuracy of the information entered into the computerized 
        filing system and compiled into the master list by making an 
        inquiry under section 336A.09.  The secretary of state shall 
        establish a procedure for requesting an inquiry to verify the 
        accuracy of the information at the time of filing. 
           Sec. 6.  Minnesota Statutes 2002, section 336A.05, is 
        amended to read: 
           336A.05 [EFFECT OF FILING ON PERFECTION AND PRIORITY.] 
           Filing under this chapter does not affect the perfection or 
        priority of security interests filed under the Uniform 
        Commercial Code or a farm products statutory lien filed in 
        accordance with the provisions of law under which it was created 
        and does not affect the priority of a security interest in farm 
        products or a farm products statutory lien except as provided in 
        section 336A.15 or 336A.16 and United States Code, title 7, 
        section 1631. 
           Sec. 7.  Minnesota Statutes 2002, section 336A.06, is 
        amended to read: 
           336A.06 [CONTINUATION STATEMENT.] 
           Subdivision 1.  [FILING PERIOD.] A secured party may file a 
        continuation statement for an effective financing statement 
        within six months before a five-year effective period expires.  
           Subd. 2.  [CONTENTS.] A continuation statement must: 
           (1) be signed, authorized, or otherwise authenticated by 
        the secured party and the debtor; 
           (2) identify the original effective financing statement by 
        file number; and 
           (3) state that the original effective financing statement 
        is still effective.  
           Subd. 3.  [EFFECTIVE PERIOD.] If a continuation statement 
        is filed within six months before a five-year effective period 
        expires, the effectiveness of the original effective financing 
        statement continues for an additional five years after the 
        original five-year effective period.  Additional continuation 
        statements filed within six months before an effective period 
        expires continue the effectiveness of the original effective 
        financing statement for additional five-year periods.  
           Subd. 4.  [FILING.] The continuation statement must be 
        filed in the filing office where the original effective 
        financing statement is filed computerized filing system of the 
        Office of the Secretary of State.  
           Sec. 8.  Minnesota Statutes 2002, section 336A.07, is 
        amended to read: 
           336A.07 [TERMINATION STATEMENTS.] 
           Subdivision 1.  [REQUIREMENT.] (a) If required in an 
        effective financing statement, A secured party shall within 30 
        days file a lien termination statement and termination statement 
        for the effective financing statement when:  
           (1) an outstanding secured obligation does not exist; and 
           (2) a written commitment to make advances, incur 
        obligations, or otherwise give value does not exist.  
           (b) A lienholder shall file a termination statement with 
        respect to a lien notice within 30 days after an outstanding 
        lien notice obligation no longer exists.  
           Subd. 2.  [CONTENTS.] (a) Unless filed pursuant to section 
        336A.03, subdivision 4, in order to amend an effective financing 
        statement or a lien notice, a lien termination statement and 
        termination statement for the a lien notice or an effective 
        financing statement must: 
           (1) state the file number of the effective financing 
        statement or lien notice; 
           (2) state the date on which the lien or security interest 
        was satisfied; 
           (3) state that the secured party does not claim a security 
        interest under the effective financing statement or that the 
        lienholder does not claim a lien under the lien notice; and 
           (4) be signed, authorized, or otherwise authenticated by 
        the secured party or lienholder. 
           (b) If a termination statement is filed pursuant to section 
        336A.03, subdivision 4, in order to amend an effective financing 
        statement or a lien notice, the termination statement must: 
           (1) state the file number of the effective financing 
        statement or lien notice; and 
           (2) be signed, authorized, or otherwise authenticated by 
        the secured party or lienholder. 
           Subd. 3.  [FILING.] A termination statement for an 
        effective financing statement or a lien notice must be filed in 
        the computerized filing system operated by the secured party in 
        the filing office where the original effective financing 
        statement is filed.  A termination statement for the lien notice 
        must be filed by the lienholder in the same manner required for 
        filing the lien notice Office of the Secretary of the State.  
           Subd. 4.  [FAILURE TO FILE.] If the secured party or 
        lienholder fails to file a termination statement as required by 
        subdivision 1, or within ten days after a debtor serves a 
        written demand for the termination statement if the conditions 
        in subdivision 1 exist, the secured party or lienholder is 
        liable to the debtor for $100 plus any loss caused to the debtor 
        by failing to file the termination statement.  For the second 
        and each subsequent time a secured party or lienholder is found 
        liable to a debtor under this subdivision in any one calendar 
        year, the secured party or lienholder is liable to the debtor 
        for $250 plus any loss caused to the debtor. 
           Subd. 5.  [FILING PROCEDURES.] (a) When a termination 
        statement is filed, each filing office must delete the 
        information from the active files as prescribed by the secretary 
        of state.  
           (b) If the termination statement is filed in duplicate, the 
        filing office shall return one copy of the termination 
        statement, stamped to show the time of receipt, to the secured 
        party or lienholder.  
           Sec. 9.  Minnesota Statutes 2002, section 336A.08, is 
        amended to read: 
           336A.08 [MASTER LIST.] 
           Subdivision 1.  [COMPILATION.] (a) The secretary of state 
        shall compile the information on effective financing statements 
        in the computerized filing system into a master list: 
           (1) organized according to farm product; 
           (2) arranged within each product: 
           (i) in alphabetical order according to the last name of the 
        individual debtor or, in the case of debtors doing business 
        other than as individuals, the first word in the name of the 
        debtors; 
           (ii) in numerical order according to the Social Security 
        number of the individual debtor or, in the case of debtors doing 
        business other than as individuals, the Internal Revenue Service 
        taxpayer identification number of the debtors; 
           (iii) geographically by county; and 
           (iv) by crop year; and 
           (3) containing the information provided on an effective 
        financing statement; and 
           (4) designating any applicable terminations of the 
        effective financing statement.  
           (b) The secretary of state shall compile information from 
        lien notices recorded in the computerized filing system into a 
        statutory lien master list in alphabetical order according to 
        the last name of the individual debtor or, in the case of 
        debtors doing business other than as individuals, the first word 
        in the name of the debtors.  The secretary of state may also 
        organize the statutory lien master list according to one or more 
        of the categories of information established in paragraph 
        (a).  Any terminations of lien notices must be noted. 
           Subd. 2.  [REMOVAL OF EFFECTIVE FINANCING STATEMENTS AND 
        LIEN NOTICES.] The secretary of state shall remove lapsed and 
        terminated effective financing statements and lien notices from 
        the computerized filing system before preparing master lists.  
           Subd. 3.  [REQUEST FOR PARTIAL MASTER LIST.] If requested 
        by a buyer registered under section 336A.11, the secretary of 
        state shall distribute partial master lists to the buyer that 
        are limited to one or more of the categories in subdivision 1, 
        paragraph (a). 
           Subd. 3a.  [ALL CROPS OR ALL LIVESTOCK DEFINED.] A 
        registered buyer who requests a monthly list may ask for a list 
        of all crops including wool, milk, eggs, cheese, and honey/bees 
        wax, all livestock including wool, milk, eggs, cheese, and 
        honey/bees wax, or both.  The list given to the buyer must then 
        include information about all the crops or all the livestock 
        listed in subdivision 1, or both. 
           Subd. 4.  [DISTRIBUTION OF MASTER AND PARTIAL LISTS.] (a) 
        The secretary of state shall maintain the information on the 
        effective financing statement master list: 
           (1) by farm product arranged alphabetically by debtor; and 
           (2) by farm product arranged numerically by the debtor's 
        Social Security number for an individual debtor or, in the case 
        of debtors doing business other than as individuals, the 
        Internal Revenue Service taxpayer identification number of the 
        debtors. 
           (b) The secretary of state shall maintain the information 
        in the farm products statutory lien master list by county 
        arranged alphabetically by debtor. 
           (c) The secretary of state shall distribute or make 
        available the requested master and partial master lists on a 
        monthly basis to farm product dealers registered under section 
        336A.11.  The secretary of state may, by rule, establish that 
        lists of certain farm products must be distributed more 
        frequently.  Lists will be distributed or made available on or 
        before the tenth day of each month or on the next business day 
        thereafter if the tenth day is not a business day. 
           (d) The secretary of state shall, by rule, establish: 
           (1) dates when the distribution of lists will be made; 
           (2) dates after which a filing of an effective financing 
        statement or lien notice will not be reflected on the next lists 
        distributed; and 
           (3) dates by which a registrant must complete a 
        registration to receive the next list distributed.  
           (e) The secretary of state shall make the master and 
        partial master lists available as written or printed paper 
        documents and may make lists available in other forms or media, 
        including: 
           (1) microfiche; 
           (2) magnetic tape; 
           (3) any electronically transmitted medium; or 
           (4) computer disk (2) any form of digital media.  
           (f) (e) There shall be no fee for partial or master lists 
        distributed on microfiche, magnetic tape, via an electronically 
        transmitted medium, computer disk, or comparable media.  The 
        annual fee for any other form of digital media is $200.  The 
        annual fee for paper partial lists is $250 and $400 for paper 
        master lists.  
           (g) At the request of a farm product dealer registered 
        under section 336A.11, the secretary of state shall deliver 
        lists at cost by certified or registered mail, return receipt 
        requested.  
           (f) A farm products dealer shall register pursuant to 
        section 336A.11 by the last business day of the month to receive 
        the monthly lists requested by the farm products dealer for that 
        month. 
           (g) If a registered farm products dealer receives a monthly 
        list that cannot be read or is incomplete, the farm products 
        dealer must immediately inform the secretary of state by 
        telephone or e-mail of the problem.  The registered farm 
        products dealer shall confirm the existence of the problem by 
        writing to the secretary of state.  The secretary of state shall 
        provide the registered farm products dealer with new monthly 
        lists in the medium chosen by the registered farm products 
        dealer no later than five business days after receipt of the 
        oral notice from the registered farm products dealer.  A 
        registered farm products dealer is not considered to have 
        received notice of the information on the monthly lists until 
        the duplicate list is received from the secretary of state or 
        until five days have passed since the duplicate lists were 
        deposited in the mail by the secretary of state, whichever comes 
        first. 
           (h) On receipt of a written notice pursuant to section 
        336A.13, the secretary of state shall duplicate the monthly 
        lists requested by the registered farm products dealer.  The 
        duplicate monthly lists must be sent to the registered farm 
        products dealer no later than five business days after receipt 
        of the written notice from the registered farm products dealer. 
           (i) A registered farm products dealer may request monthly 
        lists in one medium per registration. 
           (j) Registered farm products dealers must have renewed 
        their registration before the first day of July each year.  
        Failure to send in the registration before that date will result 
        in the farm products dealer not receiving the requested monthly 
        lists. 
           (k) Registered farm products dealers choosing to obtain 
        monthly lists via an electronically transmitted medium or in any 
        form of digital media may choose to receive all of the 
        information for the monthly lists requested the first month and 
        then only additions and deletions to the database for the 
        remaining 11 months of the year.  Following the first year of 
        registration, the registered farm products dealer may choose to 
        continue to receive one copy of the full monthly list at the 
        beginning of each year or may choose to receive only additions 
        and deletions. 
           Sec. 10.  Minnesota Statutes 2002, section 336A.09, is 
        amended to read: 
           336A.09 [INQUIRIES.] 
           Subdivision 1.  [PROCEDURE.] (a) Oral and written inquiries 
        regarding information provided by the filing of effective 
        financing statements or lien notices may be made at any filing 
        office during regular business hours. 
           (b) A filing office receiving an oral or written inquiry 
        shall, upon request, provide an oral or facsimile response to 
        the inquiry and must mail send a confirmation of the inquiry in 
        writing by the end of the next business day after the inquiry is 
        received.  
           (c) A filing office shall maintain a record of inquiries 
        made under this section including:  
           (1) the date of the inquiry; 
           (2) the name of the debtor inquired about; and 
           (3) identification of the person making the request for 
        inquiry.  
           Subd. 2.  [SEARCHES; FEES.] (a) If a person makes a 
        request, the filing officer shall conduct a search of the 
        computerized filing system for effective financing statements or 
        lien notices and statements of continuation of a particular 
        debtor.  The filing officer shall produce a report including the 
        date, time, and results of the search by issuing: 
           (1) a certificate listing of the file number, date, and 
        hour of each effective financing statement found in the search 
        and the names and addresses of each secured party on the 
        effective financing statements or of each lien notice found in 
        the search and the names and address of each lienholder on the 
        lien notice; or 
           (2) photocopies of the original effective financing 
        statement or lien notice documents on file; or 
           (3) upon request, both the certificate report and 
        photocopies of the effective financing statements or lien 
        notices. 
           (b) The uniform fee for conducting a search and for 
        preparing a certificate report is $15 $20 per debtor name if 
        the request is in the standard form prescribed by the secretary 
        of state.  This uniform fee shall include ten photocopies of 
        original documents. If the request for information is made on a 
        form other than the standard form prescribed by the secretary of 
        state, the fee is $20 per debtor name and shall include ten 
        photocopies of original documents.  An additional fee of $1 per 
        page must be charged for each photocopy prepared in excess of 
        the first ten.  If an oral or facsimile response is requested, 
        there is an additional fee of $5 per debtor name requested.  A 
        fee of $1 per page will be charged for photocopies of effective 
        financing statements, lien notices, continuation statements, or 
        termination statements. 
           (c) A county recorder shall forward $5 of each search fee 
        collected under this subdivision to the secretary of state.  
        Surcharge amounts shall be collected quarterly by the secretary 
        of state from each county recorder.  The secretary of state 
        shall send each county recorder an invoice at the end of each 
        fiscal quarter and each county recorder shall forward payment to 
        the secretary of state within 30 days of the date of the invoice.
        The surcharge amounts received from county recorders and the 
        surcharge amounts collected by the Secretary of State's Office 
        must be deposited in the state treasury and credited to the 
        general fund.  The balance of the Search fees collected by a 
        county recorder satellite office must be deposited in the 
        general fund of the county where the satellite office is located.
           Sec. 11.  Minnesota Statutes 2002, section 336A.10, is 
        amended to read: 
           336A.10 [LIABILITY FOR INFORMATION ERRORS IMMUNITY.] 
           (a) Except as provided in sections 609.87 to 609.891, the 
        state, the secretary of state, counties, county recorders, and 
        their employees and agents are immune from liability as a result 
        of errors or omissions in information supplied under this 
        chapter. 
           (b) The secretary of state, county recorders, and their 
        employees and agents are not liable for any loss or damages 
        arising from errors in or omissions from information entered 
        into the computerized filing system as a result of the 
        electronic transmission of effective financing statements and 
        lien notices. 
           Sec. 12.  Minnesota Statutes 2002, section 336A.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS.] Farm product dealers may 
        register with the secretary of state to receive master lists of 
        notices of security interests in farm products or farm products 
        statutory liens.  Registration must be made on an annual 
        calendar year basis.  A registration is not complete until the 
        registration form or format is properly completed and received 
        by the secretary of state and accompanied by the registration 
        fee.  Registration entitles a farm product dealer to receive 
        lists for those farm products specified by the registrant at the 
        time of registration. 
           Sec. 13.  Minnesota Statutes 2002, section 336A.11, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REGISTRATION FORMS OR FORMAT.] The secretary of 
        state shall make registration forms or format available to farm 
        product dealers.  The secretary of state must also make 
        registration information available to the commissioner of 
        agriculture for distribution to applicants for licensure under 
        section 17A.04 or 223.17.  The registration form or format must 
        include provisions for the name and address of the farm product 
        dealer, a request for the master or partial master lists, and 
        the medium on which the farm product dealer desires to receive 
        the master list.  
           Sec. 14.  Minnesota Statutes 2002, section 336A.12, is 
        amended to read: 
           336A.12 [RULES.] 
           Subdivision 1.  [AUTHORITY.] (a) The secretary of state may 
        adopt permanent rules to implement this chapter.  
           (b) If necessary to obtain federal certification of the 
        computerized filing system, additional or alternative 
        requirements made in conformity with United States Code, title 
        7, section 1631, may be adopted by the secretary of state by 
        rule.  
           Subd. 2.  [FORMS OR FORMAT.] The secretary of state shall 
        prescribe the forms or format to be used for effective financing 
        statements, lien notices, combined forms, amendments, 
        continuation statements, termination statements, and notices to 
        debtors.  
           Sec. 15.  Minnesota Statutes 2002, section 336A.13, is 
        amended to read: 
           336A.13 [RECEIPT OF WRITTEN NOTICE.] 
           For purposes of United States Code, title 7, section 1631, 
        and this chapter, receipt of written notice means the date the 
        notice is actually received by a farm product dealer or the 
        first date that delivery is attempted by a carrier.  A farm 
        product dealer must act in good faith.  For a mailed notice, a 
        farm product dealer is presumed to have received the notice by 
        five business days after it was mailed unless by ten days after 
        it was mailed the farm product dealer notifies the secretary of 
        state in writing that it has not received the notice by that 
        time. 
           Sec. 16.  [TEMPORARY SURCHARGE.] 
           A $10 surcharge on every effective financing statement and 
        lien notice filed on or after July 1, 2004, shall be collected 
        and remitted to the secretary of state for deposit in the 
        general fund. 
           This section expires June 30, 2005. 
           Sec. 17.  [APPROPRIATION.] 
           $62,000 is appropriated in fiscal year 2005 from the 
        general fund to the secretary of state for purposes of 
        implementing this act.  This is a onetime appropriation. 
           Sec. 18.  [REPEALER.] 
           Minnesota Rules, parts 8265.0100; 8265.0200; 8265.0300; 
        8265.0400; 8265.0500; and 8265.0600, are repealed on the 
        application date specified in section 19. 
           Sec. 19.  [EFFECTIVE DATE; APPLICATION.] 
           (a) Sections 1 to 15 are effective August 1, 2004, and 
        apply to all effective financing statements and lien notices 
        governed by Minnesota Statutes, chapter 336A, that are made on 
        or after February 1 following the calendar year the United 
        States Department of Agriculture approves the central filing 
        system pursuant to United States Code, title 7, section 1631, 
        and notifies the secretary of state of the approval. 
           (b) The secretary of state shall promptly notify the 
        revisor of statutes of the notification in paragraph (a) for 
        purposes of determining the application date in section 18. 
           Presented to the governor May 10, 2004 
           Signed by the governor May 13, 2004, 11:20 a.m.