| 3 | 2 | | |
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| 4 | 3 | | |
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| 5 | 4 | | A BILL TO BE ENTITLED |
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| 6 | 5 | | AN ACT |
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| 7 | 6 | | relating to a study regarding the feasibility of implementing a |
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| 8 | 7 | | central filing system for the filing of financing statements for |
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| 9 | 8 | | security interests in farm products. |
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| 10 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 10 | | SECTION 1. DEFINITIONS. In this Act: |
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| 12 | 11 | | (1) "Security interest" has the meaning assigned by |
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| 13 | 12 | | Section 1.201, Business & Commerce Code. |
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| 14 | 13 | | (2) "Buyer" means a person who, in the ordinary course |
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| 15 | 14 | | of business, buys farm products from another person who is engaged |
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| 16 | 15 | | in farming operations and who is in the business of selling farm |
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| 17 | 16 | | products. |
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| 18 | 17 | | (3) "Commission merchant" means a person engaged in |
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| 19 | 18 | | the business of receiving a farm product for the purpose of selling |
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| 20 | 19 | | the farm product on commission or on behalf of another person. |
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| 21 | 20 | | (4) "Farm products" has the meaning assigned by |
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| 22 | 21 | | Section 9.102, Business & Commerce Code. |
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| 23 | 22 | | (5) "Financing statement" has the meaning assigned by |
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| 24 | 23 | | Section 9.102, Business & Commerce Code. |
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| 25 | 24 | | (6) "Selling agent" means a person, other than a |
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| 26 | 25 | | commission merchant, who is engaged in the business of negotiating |
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| 27 | 26 | | the sale or purchase of a farm product on behalf of a person engaged |
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| 28 | 27 | | in farming operations. |
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| 29 | 28 | | SECTION 2. FEASIBILITY STUDY ON CENTRAL FILING SYSTEM. |
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| 30 | 29 | | (a) The secretary of state shall conduct a study on the |
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| 31 | 30 | | feasibility of developing and implementing a central filing system |
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| 32 | 31 | | to be used for the filing of all financing statements that cover |
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| 33 | 32 | | farm products being sold and purchased in this state that are |
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| 34 | 33 | | subject to a security interest. |
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| 35 | 34 | | (b) The study conducted under this section must evaluate |
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| 36 | 35 | | proposals for a central filing system that allows: |
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| 37 | 36 | | (1) a secured party to file a financing statement in |
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| 38 | 37 | | the system that covers farm products; and |
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| 39 | 38 | | (2) a buyer, commission merchant, selling agent, or |
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| 40 | 39 | | other person to search the system to determine whether the farm |
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| 41 | 40 | | product is subject to a security interest based on the information |
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| 42 | 41 | | contained in a financing statement that is filed in the system. |
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| 43 | 42 | | SECTION 3. REPORT. Not later than January 12, 2021, the |
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| 44 | 43 | | secretary of state shall report the results of the study and any |
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| 45 | 44 | | recommendations to the legislature. The report must include any |
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| 46 | 45 | | proposed legislation necessary to implement the recommendations |
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| 47 | 46 | | made in the report. |
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| 48 | 47 | | SECTION 4. EXPIRATION. This Act expires June 1, 2021. |
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| 49 | 48 | | SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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| 50 | 49 | | 1, 2019. |
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