By: Hall S.B. No. 2037
(King of Hemphill)
A BILL TO BE ENTITLED
AN ACT
relating to a study regarding the feasibility of implementing a
central filing system for the filing of financing statements for
security interests in farm products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITIONS. In this Act:
(1) "Security interest" has the meaning assigned by
Section 1.201, Business & Commerce Code.
(2) "Buyer" means a person who, in the ordinary course
of business, buys farm products from another person who is engaged
in farming operations and who is in the business of selling farm
products.
(3) "Commission merchant" means a person engaged in
the business of receiving a farm product for the purpose of selling
the farm product on commission or on behalf of another person.
(4) "Farm products" has the meaning assigned by
Section 9.102, Business & Commerce Code.
(5) "Financing statement" has the meaning assigned by
Section 9.102, Business & Commerce Code.
(6) "Selling agent" means a person, other than a
commission merchant, who is engaged in the business of negotiating
the sale or purchase of a farm product on behalf of a person engaged
in farming operations.
SECTION 2. FEASIBILITY STUDY ON CENTRAL FILING SYSTEM.
(a) The secretary of state shall conduct a study on the
feasibility of developing and implementing a central filing system
to be used for the filing of all financing statements that cover
farm products being sold and purchased in this state that are
subject to a security interest.
(b) The study conducted under this section must evaluate
proposals for a central filing system that allows:
(1) a secured party to file a financing statement in
the system that covers farm products; and
(2) a buyer, commission merchant, selling agent, or
other person to search the system to determine whether the farm
product is subject to a security interest based on the information
contained in a financing statement that is filed in the system.
SECTION 3. REPORT. Not later than January 12, 2021, the
secretary of state shall report the results of the study and any
recommendations to the legislature. The report must include any
proposed legislation necessary to implement the recommendations
made in the report.
SECTION 4. EXPIRATION. This Act expires June 1, 2021.
SECTION 5. EFFECTIVE DATE. This Act takes effect September
1, 2019.