Texas 2015 - 84th Regular

Texas House Bill HB1848 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R19953 NC-F
2	2	By: Burrows, Springer H.B. No. 1848
3	3	Substitute the following for H.B. No. 1848:
4	4	By: González C.S.H.B. No. 1848
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the perfection and priority of an agricultural lien on
10	10	an agricultural crop.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 70.401(4), Property Code, is amended to
13	13	read as follows:
14	14	(4) "Contract purchaser" means a person who[, before
15	15	the planting of an agricultural crop,] has agreed under a [written]
16	16	contract to purchase an agricultural [the] crop or otherwise pay
17	17	the agricultural producer for growing, producing, or harvesting the
18	18	agricultural crop. The term does not include a person who, as to
19	19	the transaction in question, is licensed and bonded under Chapter
20	20	14, Agriculture Code, or the United States Warehouse Act (7 U.S.C.
21	21	Section 241 et seq.).
22	22	SECTION 2. Sections 70.402(a) and (b), Property Code, are
23	23	amended to read as follows:
24	24	(a) An agricultural producer who, under a [written]
25	25	contract with a contract purchaser, is to receive consideration for
26	26	selling an agricultural crop grown, produced, or harvested by the
27	27	producer has a lien for the amount owed under the contract, or for
28	28	the reasonable value of the crop on the date of transfer or delivery
29	29	if there is no agreement [provision] concerning the amount owed
30	30	under the contract [in the agreement].
31	31	(b) A lien created under this subchapter is on every
32	32	agricultural crop, either in raw or processed form, that has been
33	33	transferred or delivered by the agricultural producer and is in the
34	34	possession of the contract purchaser, and if the contract purchaser
35	35	sells all or part of the crop, on the proceeds of the sale. If the
36	36	agricultural crop is commingled after the crop has been transferred
37	37	or delivered, a lien created under this subchapter applies only to
38	38	that portion of the contract purchaser's inventory in an amount
39	39	that is equal to the amount of the crop transferred or delivered by
40	40	the agricultural producer.
41	41	SECTION 3. Section 70.403, Property Code, is amended to
42	42	read as follows:
43	43	Sec. 70.403. WHEN LIEN ATTACHES. A lien created under this
44	44	subchapter attaches [to the agricultural crop] on the date on which
45	45	physical possession of the agricultural crop is delivered or
46	46	transferred by the agricultural producer to the contract purchaser
47	47	or the purchaser's agent, or if there is to be a series of
48	48	deliveries to the contract purchaser or purchaser's agent, on the
49	49	date of the first [last] delivery of the agricultural crop to the
50	50	contract purchaser or purchaser's agent.
51	51	SECTION 4. Section 70.404, Property Code, is amended to
52	52	read as follows:
53	53	Sec. 70.404. APPLICABILITY OF OTHER LAW. Except as provided
54	54	by Section 70.4045, Chapter 9, Business & Commerce Code, including
55	55	applicable filing and perfection requirements, applies to a lien
56	56	created under this subchapter.
57	57	SECTION 5. Subchapter E, Chapter 70, Property Code, is
58	58	amended by adding Section 70.4045 to read as follows:
59	59	Sec. 70.4045. PERFECTION AND PRIORITY OF AGRICULTURAL LIEN
60	60	ON CROPS. (a) Notwithstanding Chapter 9, Business & Commerce Code,
61	61	a lien created under this subchapter is perfected at the time the
62	62	lien attaches under Section 70.403 and continues to be perfected if
63	63	a financing statement covering the agricultural crop is filed on or
64	64	before the 90th day after the date:
65	65	(1) the physical possession of the crop is delivered
66	66	or transferred by the agricultural producer to the contract
67	67	purchaser or the purchaser's agent, if there is only one delivery
68	68	under the contract; or
69	69	(2) of the last delivery of the crop to the contract
70	70	purchaser or the purchaser's agent, if there is a series of
71	71	deliveries under the contract.
72	72	(b) If a financing statement covering the agricultural crop
73	73	is not filed within the time prescribed by Subsection (a)(1) or (2),
74	74	as applicable, the lien is considered unperfected on the date the
75	75	lien attached until the date the financing statement is filed or the
76	76	lien is perfected under Chapter 9, Business & Commerce Code.
77	77	(c) Notwithstanding Chapter 9, Business & Commerce Code, a
78	78	lien created and perfected under this subchapter has priority over
79	79	a conflicting security interest in or lien on the agricultural crop
80	80	or the proceeds from the sale of the crop created by the contract
81	81	purchaser in favor of a third party, other than a cotton ginner's
82	82	lien created under Section 70.003(d), regardless of the date the
83	83	security interest or lien created by the contract purchaser
84	84	attached. This subsection does not affect a security interest or
85	85	lien created and perfected to secure a loan directly to the
86	86	agricultural producer.
87	87	SECTION 6. The changes in law made by this Act apply only to
88	88	a lien that attaches under Section 70.403, Property Code, as
89	89	amended by this Act, on or after the effective date of this Act. A
90	90	lien that attaches before the effective date of this Act is governed
91	91	by the law as it existed immediately before that date, and that law
92	92	is continued in effect for that purpose.
93	93	SECTION 7. This Act takes effect September 1, 2015.