Texas 2017 85th Regular

Texas House Bill HB3663 Introduced / Bill

Filed 03/14/2017

                    By: Burns H.B. No. 3663


 A BILL TO BE ENTITLED
 AN ACT
 relating to marketing contracts and agricultural liens.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 70.4045(c), Property Code, is amended to
 read as follows:
 (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.]
 (1)  affect the validity or priority of a security interest
 or lien created and perfected to secure a loan directly to the
 agricultural producer;
 (2)  affect the validity or priority of a cotton ginner's
 lien created under Section 70.003(d);
 (3)  apply to a contract purchaser who purchases an
 agricultural crop from an agricultural producer pursuant to a
 marketing contract created under Section 52.016, Agriculture Code,
 or under Title 7, USC (specifically Chapter 35A, Subchapter I, §
 1421, and Subchapter II, § 1441, and Chapter 106, Subchapter II, §§
 7931-7939) and Title 15, Chapter 15, Subchapter II, USC (statutes
 relating to the Commodity Credit Corporation, and specifically §§
 714b, 714c, and 714j).
 SECTION 2.  This Act takes effect September 1, 2017.