Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 525-H.F.No. 769 
           An act relating to agriculture; increasing the 
          surcharge on uniform commercial code filings and 
          searches; providing for a central computerized filing 
          system for effective financing statements and farm 
          products statutory lien notices; appropriating money; 
          amending Minnesota Statutes 1991 Supplement, section 
          336.9-413; proposing coding for new law as Minnesota 
          Statutes, chapter 336A; repealing Minnesota Statutes 
          1990, sections 223A.02; 223A.03; 223A.04; 223A.05; 
          223A.06; and 223A.07. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
336.9-413, is amended to read: 
    336.9-413 [UNIFORM COMMERCIAL CODE ACCOUNT.] 
    (a) The uniform commercial code account is established as 
an account in the state treasury.  
    (b) The filing officer with whom a financing statement, 
amendment, assignment, statement of release, or continuation 
statement is filed, or to whom a request for search is made, 
shall collect a $4 surcharge on each filing or search, except 
that the surcharge is $5 during the fiscal year ending June 30, 
1993.  By the 15th day following the end of each fiscal quarter, 
each county recorder shall forward the receipts from the 
surcharge accumulated during that fiscal quarter to the 
secretary of state.  The surcharge does not apply to a search 
request made by a natural person who is the subject of the data 
to be searched except when a certificate is requested as a part 
of the search.  
    (c) 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. 
    (d) Fees that are not expressly set by statute but are 
charged by the secretary of state to offset the costs of 
providing a service under sections 336.9-411 to 336.9-413 must 
be deposited in the state treasury and credited to the uniform 
commercial code account.  
    (e) Fees that are not expressly set by statute but are 
charged by the secretary of state to offset the costs of 
providing information contained in the computerized records 
maintained by the secretary of state must be deposited in the 
state treasury and credited to the uniform commercial code 
account.  
    (f) Money in the uniform commercial code account is 
continuously appropriated to the secretary of state to implement 
and maintain the computerized uniform commercial code filing 
system under section 336.9-411 and to provide 
electronic-view-only access to other computerized records 
maintained by the secretary of state. 
    Sec. 2.  [336A.01] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter. 
    Subd. 2.  [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.  [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.  [COMPUTERIZED FILING SYSTEM.] "Computerized 
filing system" means the system created under section 336.9-411 
with separate programs for filing and giving notice of effective 
financing statements and farm products statutory liens.  
    Subd. 5.  [EFFECTIVE FINANCING STATEMENT.] "Effective 
financing statement" means an original or reproduced copy of an 
original statement that meets the requirements of section 4. 
    Subd. 6.  [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.  [FARM PRODUCT DEALER.] "Farm product dealer" 
means a buyer in the ordinary course of business, a commission 
merchant, or a selling agent.  
    Subd. 8.  [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. 
    Subd. 9.  [FILING OFFICE.] "Filing office" means the office 
of the county recorder or the office of the secretary of state. 
    Subd. 10.  [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. 11.  [LIEN NOTICE.] "Lien notice" means an original 
or reproduced copy of an original statement that meets the 
requirements of section 4. 
    Subd. 12.  [PERSON.] "Person" means an individual, 
partnership, corporation, trust, or other business entity. 
    Subd. 13.  [SECURITY INTEREST.] "Security interest" means 
an interest in farm products that secures payment or performance 
of an obligation.  
    Subd. 14.  [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. 3.  [336A.02] [SPECIFICATION OF FARM 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. 
    Sec. 4.  [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. 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 
county, where the farm products are located; 
    (2) the name and address of the secured party or the person 
entitled to the farm products statutory lien; 
    (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; 
    (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. 
    (d) An effective financing statement must contain the 
following statement, all in capital letters:  
 "THE INFORMATION CONTAINED IN THIS 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." 
    Subd. 3.  [SIGNATURES.] A lien notice must be signed by the 
lienholder.  An effective financing statement must be signed 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.  The amendment to an effective financing statement or a 
lien statement must be signed 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 7. 
    (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 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 statutory lien no longer 
exists. 
    Sec. 5.  [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 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. 
    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 for a lien notice, effective financing statement, 
amendment, or continuation statement, and stamping the date and 
place of filing on a copy of the filed document furnished by the 
filing party is $10 when a single debtor name is listed.  If 
more than one debtor's name is listed on a standard form, the 
fee is $17.  If one debtor's name is listed on a nonstandard 
effective filing statement, assignment or continuation 
statement, or a nonstandard lien notice or assignment of a lien 
notice, the fee is $13.  If more than one debtor's name is 
listed on a nonstandard form, the fee is $20.  
    (b) The fee for filing an amendment on the standard form 
that does not add debtors' names to the lien notice or effective 
financing statement is $10.  If a nonstandard form is used, the 
fee is $13.  The fee for an amendment that adds debtors' names 
is $17 if a standard form is used or $20 if a nonstandard form 
is used.  The fee for filing a partial release is $10 if a 
standard form is used or $13 if a nonstandard form is used. 
    (c) 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.  
    (d) A county recorder shall forward $5 of each filing fee 
collected under this subdivision to the secretary of state by 
the 15th of the month following the end of each fiscal quarter.  
The balance of the filing fees collected by a county recorder 
must be deposited in the general fund of the county.  
    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.  
    (b) The filing office shall maintain the original filed 
document or a microfilm or other photographic copy of the filed 
document for public inspection as provided in rule by the 
secretary of state.  
    (c) The filing office shall index filed documents according 
to the file number of the document.  
    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 10.  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.  [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.
    Sec. 7.  [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 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.  
    Sec. 8.  [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 lien termination statement and 
termination statement for the 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 by the secured party or lienholder. 
    Subd. 3.  [FILING.] A termination statement for an 
effective financing statement must be filed 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.  
    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.  [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.  
    (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). 
    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 12, 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. 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 the requested 
master and partial master lists on a monthly basis to farm 
product dealers registered under section 12.  The secretary of 
state may, by rule, establish that lists of certain farm 
products must be distributed more frequently.  
    (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) electronically transmitted medium; or 
    (4) computer disk.  
    (f) There shall be no fee for partial or master lists 
distributed on microfiche, magnetic tape, electronically 
transmitted medium, computer disk, or comparable media. 
    (g) At the request of a farm product dealer registered 
under section 12, the secretary of state shall deliver lists at 
cost by certified or registered mail, return receipt requested.  
    Sec. 10.  [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 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 assignment, continuation, 
amendment, and partial release of a particular debtor.  The 
filing officer shall report the date, time, and results of the 
search by issuing: 
    (1) a certificate listing 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; 
    (2) photocopies of the original effective financing 
statement or lien notice documents on file; or 
    (3) upon request, both the certificate and photocopies of 
the effective financing statements or lien notices. 
    (b) The uniform fee for conducting a search and for 
preparing a certificate showing up to five listed filings or for 
preparing up to five photocopies of original documents, or any 
combination of up to five listed filings and photocopies, is $10 
per debtor name if the request is in the standard form 
prescribed by the secretary of state and otherwise is $13 per 
debtor name.  An additional fee of 50 cents must be charged for 
each listed filing and for each photocopy prepared in excess of 
the first five.  If an oral or facsimile response is requested, 
there is an additional fee of $5 per debtor.  
    (c) A county recorder shall forward $3 of each search fee 
collected under this subdivision to the secretary of state by 
the 15th of the month following each fiscal quarter.  The 
balance of the search fees collected by a county recorder must 
be deposited in the general fund of the county. 
    Sec. 11.  [336A.10] [LIABILITY FOR INFORMATION ERRORS.] 
    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. 
    Sec. 12.  [336A.11] [REGISTRATION OF FARM PRODUCT DEALERS.] 
    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 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. 
    Subd. 2.  [REGISTRATION FORMS.] The secretary of state 
shall make registration forms available to farm product 
dealers.  The secretary of state must also make registration 
forms available to the commissioner of agriculture for 
distribution to applicants for licensure under section 17A.04 or 
223.17.  The registration form 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.  
    Subd. 3.  [REGISTRATION FEE.] The annual registration fee 
for farm product dealers is $25. 
    Subd. 4.  [RECORD OF REGISTERED FARM PRODUCT DEALERS.] The 
secretary of state shall maintain a record of the registered 
farm product dealers and the lists and contents of the lists 
received by the registered farm product dealers for a period of 
five years after the lists are distributed. 
    Sec. 13.  [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.] The secretary of state shall prescribe 
forms to be used for effective financing statements, lien 
notices, combined forms, amendments, continuation statements, 
termination statements, and notices to debtors.  
    Sec. 14.  [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.  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. 15.  [336A.14] [RESTRICTED USE OF INFORMATION.] 
    Information obtained from the seller of a farm product 
relative to the social security number or tax identification 
number of the true owner of the farm product and all information 
obtained from the master or limited list may not be used for 
purposes that are not related to:  (1) purchase of a farm 
product; (2) taking a security interest against a farm product; 
or (3) perfecting a farm product statutory lien. 
    Sec. 16.  [336A.15] [BUYERS TAKING FREE OF AND SUBJECT TO 
FARM PRODUCTS STATUTORY LIENS.] 
    Subdivision 1.  [TAKING FREE OF LIEN.] Except as provided 
in subdivision 2, and notwithstanding other law or rule to the 
contrary, a buyer in the ordinary course of business who buys 
farm products from a seller engaged in farming operations takes 
free of a farm products statutory lien applicable to the 
purchased farm products even though the farm products statutory 
lien is perfected and the buyer knows the lien exists.  
    Subd. 2.  [TAKING SUBJECT TO LIEN.] A buyer in the ordinary 
course of business of farm products takes subject to a farm 
products statutory lien applicable to the purchased farm 
products if the lienholder has perfected the farm products 
statutory lien and:  
    (1) the buyer has failed to register with the secretary of 
state as provided in section 12; or 
    (2) the buyer has registered with the secretary of state as 
provided in section 12, the buyer receives a notice from the 
secretary of state specifying that the seller and the farm 
products being sold are subject to a lien notice, and the buyer 
fails to secure a waiver or release of the farm products 
statutory lien specified in the lien notice by making a payment, 
satisfying an obligation, or otherwise.  
    Sec. 17.  [336A.16] [COMMISSION MERCHANTS AND SELLING 
AGENTS SUBJECT TO FARM PRODUCTS STATUTORY LIEN.] 
    Subdivision 1.  [SELLING NOT SUBJECT TO LIEN.] Except as 
provided in subdivision 2, and notwithstanding other law or rule 
to the contrary, a commission merchant or selling agent who 
sells farm products for others is not subject to a farm products 
statutory lien even though the farm products statutory lien is 
perfected and the commission merchant or selling agent knows the 
lien exists.  
    Subd. 2.  [SELLING SUBJECT TO LIEN.] A commission merchant 
or selling agent selling farm products for another person is 
subject to a farm product statutory lien applicable to the 
purchased farm products if the lienholder has perfected the farm 
products statutory lien and: 
    (1) the commission merchant or selling agent has failed to 
register with the secretary of state as provided in section 12; 
or 
    (2) the commission merchant or selling agent has registered 
with the secretary of state as provided in section 12, the 
commission merchant or selling agent receives a notice from the 
secretary of state specifying that the seller and the farm 
products being sold are subject to a lien notice, and the 
commission merchant or selling agent fails to secure a waiver or 
release of the farm products statutory lien specified in the 
lien notice by making a payment, satisfying an obligation, or 
otherwise. 
    Sec. 18.  [APPLICATION FOR CERTIFICATION.] 
    The secretary of state shall apply to the secretary of the 
United States Department of Agriculture for certification of the 
computerized filing system. 
    Sec. 19.  [APPROPRIATION.] 
    Subdivision 1.  [AMOUNT.] $357,000 is appropriated to the 
secretary of state from the general fund for implementation and 
maintenance of the computerized farm products filing and 
notification system. 
    Subd. 2.  [COMPLEMENT.] The approved complement of the 
office of the secretary of state is increased by five positions. 
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1990, sections 223A.02; 223A.03; 
223A.04; 223A.05; 223A.06; and 223A.07, are repealed. 
    Sec. 21.  [EFFECTIVE DATE.] 
    This act is effective the day after final enactment except 
that the provisions relating to the computerized farm product 
filing and notification system are not effective until the 
secretary of state notifies the public and the filing officers 
that the computerized system is operational.  The secretary of 
state shall give notice of the computerized system being 
operational at least 30 days before the operational date.  The 
operational date shall be no earlier than January 1, 1993. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 27, 1992, 1:50 p.m.