84R19953 NC-F
By: Burrows, Springer H.B. No. 1848
Substitute the following for H.B. No. 1848:
By: González C.S.H.B. No. 1848
A BILL TO BE ENTITLED
AN ACT
relating to the perfection and priority of an agricultural lien on
an agricultural crop.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 70.401(4), Property Code, is amended to
read as follows:
(4) "Contract purchaser" means a person who[, before
the planting of an agricultural crop,] has agreed under a [written]
contract to purchase an agricultural [the] crop or otherwise pay
the agricultural producer for growing, producing, or harvesting the
agricultural crop. The term does not include a person who, as to
the transaction in question, is licensed and bonded under Chapter
14, Agriculture Code, or the United States Warehouse Act (7 U.S.C.
Section 241 et seq.).
SECTION 2. Sections 70.402(a) and (b), Property Code, are
amended to read as follows:
(a) An agricultural producer who, under a [written]
contract with a contract purchaser, is to receive consideration for
selling an agricultural crop grown, produced, or harvested by the
producer has a lien for the amount owed under the contract, or for
the reasonable value of the crop on the date of transfer or delivery
if there is no agreement [provision] concerning the amount owed
under the contract [in the agreement].
(b) A lien created under this subchapter is on every
agricultural crop, either in raw or processed form, that has been
transferred or delivered by the agricultural producer and is in the
possession of the contract purchaser, and if the contract purchaser
sells all or part of the crop, on the proceeds of the sale. If the
agricultural crop is commingled after the crop has been transferred
or delivered, a lien created under this subchapter applies only to
that portion of the contract purchaser's inventory in an amount
that is equal to the amount of the crop transferred or delivered by
the agricultural producer.
SECTION 3. Section 70.403, Property Code, is amended to
read as follows:
Sec. 70.403. WHEN LIEN ATTACHES. A lien created under this
subchapter attaches [to the agricultural crop] on the date on which
physical possession of the agricultural crop is delivered or
transferred by the agricultural producer to the contract purchaser
or the purchaser's agent, or if there is to be a series of
deliveries to the contract purchaser or purchaser's agent, on the
date of the first [last] delivery of the agricultural crop to the
contract purchaser or purchaser's agent.
SECTION 4. Section 70.404, Property Code, is amended to
read as follows:
Sec. 70.404. APPLICABILITY OF OTHER LAW. Except as provided
by Section 70.4045, Chapter 9, Business & Commerce Code, including
applicable filing and perfection requirements, applies to a lien
created under this subchapter.
SECTION 5. Subchapter E, Chapter 70, Property Code, is
amended by adding Section 70.4045 to read as follows:
Sec. 70.4045. PERFECTION AND PRIORITY OF AGRICULTURAL LIEN
ON CROPS. (a) Notwithstanding Chapter 9, Business & Commerce Code,
a lien created under this subchapter is perfected at the time the
lien attaches under Section 70.403 and continues to be perfected if
a financing statement covering the agricultural crop is filed on or
before the 90th day after the date:
(1) the physical possession of the crop is delivered
or transferred by the agricultural producer to the contract
purchaser or the purchaser's agent, if there is only one delivery
under the contract; or
(2) of the last delivery of the crop to the contract
purchaser or the purchaser's agent, if there is a series of
deliveries under the contract.
(b) If a financing statement covering the agricultural crop
is not filed within the time prescribed by Subsection (a)(1) or (2),
as applicable, the lien is considered unperfected on the date the
lien attached until the date the financing statement is filed or the
lien is perfected under Chapter 9, Business & Commerce Code.
(c) Notwithstanding Chapter 9, Business & Commerce Code, a
lien created and perfected under this subchapter has priority over
a conflicting security interest in or lien on the agricultural crop
or the proceeds from the sale of the crop created by the contract
purchaser in favor of a third party, other than a cotton ginner's
lien created under Section 70.003(d), regardless of the date the
security interest or lien created by the contract purchaser
attached. This subsection does not affect a security interest or
lien created and perfected to secure a loan directly to the
agricultural producer.
SECTION 6. The changes in law made by this Act apply only to
a lien that attaches under Section 70.403, Property Code, as
amended by this Act, on or after the effective date of this Act. A
lien that attaches before the effective date of this Act is governed
by the law as it existed immediately before that date, and that law
is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2015.