By Swinford                                           H.B. No. 1463
       74R2887 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a lien in favor of a seller of agricultural chemicals,
    1-3  agricultural seeds, or animal feed; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 5, Agriculture Code, is amended by adding
    1-6  Subtitle H to read as follows:
    1-7                   SUBTITLE H.  HORTICULTURAL LIENS
    1-8          CHAPTER 128.  AGRICULTURAL CHEMICAL AND SEED LIENS
    1-9                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-10        Sec. 128.001.  DEFINITIONS.  In this chapter:
   1-11              (1)  "Agricultural chemical" includes fertilizer
   1-12  material as defined under Section 63.001, pesticides as defined
   1-13  under Section 76.001, plant regulators as defined under Section
   1-14  76.001, lime, plant and soil amendments, plant food, herbicides,
   1-15  and chemical compounds that are applied to crops or to land used
   1-16  for growing crops.
   1-17              (2)  "Agricultural seed" has the meaning assigned under
   1-18  Section 61.001.
   1-19              (3)  "Labor" means labor or services performed in the
   1-20  application, delivery, or preparation of an agricultural chemical
   1-21  or agricultural seed provided by the seller of the agricultural
   1-22  chemical or agricultural seed.
   1-23              (4)  "Reasonable or agreed charges" means:
   1-24                    (A)  any agreed price for agricultural chemicals
    2-1  or agricultural seeds, including labor, sold to a lien debtor at
    2-2  the lien debtor's request; or
    2-3                    (B)  the reasonable value of agricultural
    2-4  chemicals or agricultural seeds, including labor, as of the date of
    2-5  application, delivery, or preparation, if there is not an agreed
    2-6  price or an agreed method for determining price.
    2-7        Sec. 128.002.  PROCEEDS.  (a)  For the purposes of this
    2-8  chapter, proceeds are the amounts received by a lien debtor, before
    2-9  a deduction for taxes, fees, or assessments or a deduction made
   2-10  under a court order, from the sale of:
   2-11              (1)  the crop that existed at the time of application
   2-12  on the land of the  agricultural chemical sold by the lien
   2-13  claimant;
   2-14              (2)  the first crop produced on the land after the
   2-15  agricultural chemical sold by the lien claimant was applied, if
   2-16  crops did not exist on the land at the time the agricultural
   2-17  chemical was applied; or
   2-18              (3)  the crop produced from the agricultural seed
   2-19  supplied by the lien claimant.
   2-20        (b)  For the purposes of this chapter, the following are not
   2-21  included as proceeds:
   2-22              (1)  amounts due or owing to a cooperative association
   2-23  under Chapter 51 or 52; or
   2-24              (2)  amounts retained by a cooperative association
   2-25  under Chapter 51 or 52.
   2-26           (Sections 128.003-128.005 reserved for expansion
   2-27          SUBCHAPTER B.  AGRICULTURAL CHEMICAL AND SEED LIEN
    3-1        Sec. 128.006.  REQUIRED NOTICE.  Before a person may claim a
    3-2  lien under this chapter, the person must send to the debtor by
    3-3  certified mail written notice that states:
    3-4              (1)  that the payment of the reasonable or agreed
    3-5  charges is more than 30 days overdue;
    3-6              (2)  the amount that is overdue;
    3-7              (3)  that the debtor has the following three
    3-8  alternatives:
    3-9                    (A)  to allow the lien to be filed;
   3-10                    (B)  to enter into an agreement granting a
   3-11  security interest in the proceeds described by Section 128.002
   3-12  under the Business & Commerce Code; or
   3-13                    (C)  to pay the reasonable or agreed charges; and
   3-14              (4)  in at least 10-point type, that:
   3-15                    (A)  the debtor has until the 10th day after the
   3-16  date on which the notice is received to select an alternative under
   3-17  Subdivision (3), notify the claimant of the alternative selected,
   3-18  and satisfy all the requirements of the selected alternative; and
   3-19                    (B)  the claimant may file the notice of claim of
   3-20  lien at any time after the 10th day after the date on which the
   3-21  debtor receives the notice if the debtor does not comply with the
   3-22  requirements of Paragraph (A).
   3-23        Sec. 128.007.  ATTACHMENT OF LIEN.  A lien established under
   3-24  this chapter attaches to the proceeds  described by Section
   3-25  128.002.
   3-26        Sec. 128.008.  AMOUNT OF LIEN.  The amount of a lien under
   3-27  this chapter is equal to the sum of:
    4-1              (1)  the amount of the unpaid reasonable or agreed
    4-2  charges for:
    4-3                    (A)  agricultural chemicals furnished within the
    4-4  60-day period ending on the day the lien attaches; and
    4-5                    (B)  agricultural seeds furnished within the
    4-6  45-day period ending on the day the lien attaches; and
    4-7              (2)  the costs of enforcing the lien as provided by
    4-8  this chapter.
    4-9        Sec. 128.009.  PERSON ENTITLED TO FILE; EXCEPTION.  (a)
   4-10  Except as provided by Subsection (b) or by Section 128.047, a
   4-11  person who provides an agricultural chemical or agricultural seed
   4-12  may file a notice of claim of lien as provided by this chapter.
   4-13        (b)  A claimant may not file a notice of claim of lien if the
   4-14  arbitration of a dispute between the claimant and the debtor is
   4-15  pending or has not been resolved under Chapter 64.  A claimant may
   4-16  not file a notice of claim of lien  if the settlement of a dispute
   4-17  between the claimant and the  debtor is pending or has not been
   4-18  resolved under Section 128.012.
   4-19        Sec. 128.010.  PERFECTION OF LIEN.  A lien created under this
   4-20  chapter is perfected on the filing of a notice of claim of lien
   4-21  with the secretary of state as provided by this chapter.
   4-22        Sec. 128.011.  DURATION OF NOTICE OF CLAIM OF LIEN.  (a)
   4-23  Except as otherwise provided by this chapter, the notice of claim
   4-24  of lien is effective, and a new notice of claim of lien is not
   4-25  required to maintain the lien, as long as the person who provides
   4-26  the agricultural chemical or agricultural seed, including labor,
   4-27  either:
    5-1              (1)  remains unpaid for the amount secured by the lien;
    5-2  or
    5-3              (2)  continues to provide an agricultural chemical or
    5-4  agricultural seed on a regular basis to the lien debtor.
    5-5        (b)  For purposes of this section, providing an agricultural
    5-6  chemical or agricultural seed, including labor, is not considered
    5-7  to be made on a regular basis if a period of more than 45 days
    5-8  elapses between applications, deliveries, or preparations.
    5-9        Sec. 128.012.  PROCEDURES FOR SETTLEMENT OF DISPUTES.  (a)
   5-10  The commissioner of agriculture by rule shall establish a procedure
   5-11  to settle a dispute between a claimant supplying agricultural
   5-12  chemicals and labor and a debtor.  The procedures must provide:
   5-13              (1)  a time requirement for submitting the dispute to
   5-14  the department;
   5-15              (2)  a time requirement within which a notice of the
   5-16  dispute must be submitted to each party; and
   5-17              (3)  a process for evaluating the dispute.
   5-18        (b)  Each party to the dispute is equally liable for the
   5-19  reasonable costs incurred by the department in carrying out this
   5-20  section.
   5-21        Sec. 128.013.  CONTENTS OF NOTICE OF CLAIM OF LIEN.  The
   5-22  notice of claim of lien must include:
   5-23              (1)  the name and address of the lien claimant;
   5-24              (2)  the name and address of the lien debtor;
   5-25              (3)  the location of the property to which the
   5-26  agricultural chemical or agricultural seed was provided;
   5-27              (4)  a statement that the payment of the reasonable or
    6-1  agreed charges is more than 30 days overdue;
    6-2              (5)  the amount that is overdue;
    6-3              (6)  a statement, signed under penalty of perjury,
    6-4  that:
    6-5                    (A)  the lien claimant sent to the lien debtor
    6-6  the notice required by Section 128.006;
    6-7                    (B)  more than 10 days have elapsed since the
    6-8  date on which the notice was received by the lien debtor; and
    6-9                    (C)  the lien debtor has not complied with the
   6-10  requirements of an alternative set out by Section 128.006; and
   6-11              (7)  a statement that the lien claimant has an
   6-12  agricultural chemical or agricultural seed lien under this chapter.
   6-13        Sec. 128.014.  SIGNATURE.  The notice of claim of lien shall
   6-14  be signed by the lien claimant or by a person authorized to sign
   6-15  documents of a similar kind on behalf of the claimant.
   6-16        Sec. 128.015.  FORM.  (a)  The notice of claim of lien must
   6-17  be filed on a form that satisfies the requirements of a financing
   6-18  statement under Section 9.402, Business & Commerce Code, except
   6-19  that:
   6-20              (1)  the lien claimant may be identified either as a
   6-21  lien claimant or as a secured party;
   6-22              (2)  the form must be signed by the lien claimant and
   6-23  is not required to be signed by the lien debtor; and
   6-24              (3)  in the space for the description of the
   6-25  collateral, the information specified in Sections 128.013(3), (4),
   6-26  (5), and (7) must be entered.
   6-27        (b)  A separately signed statement containing the information
    7-1  specified in Section 128.013(6) shall be attached to the form
    7-2  required under Subsection (a).
    7-3        Sec. 128.016.  FILING AND MARKING IN OFFICE OF SECRETARY OF
    7-4  STATE.  The notice of claim of lien shall be filed and marked in
    7-5  the office of the secretary of state in the same manner as a
    7-6  financing statement is filed and marked under Section 9.403,
    7-7  Business & Commerce Code.
    7-8        Sec. 128.017.  TIME OF WRITTEN NOTICE.  The lien claimant
    7-9  shall provide written notice of the claim of lien to the lien
   7-10  debtor not later than the 10th day after the date the notice of
   7-11  claim of lien is filed with the office of the secretary of state.
   7-12        Sec. 128.018.  RECOGNITION OF NOTICE AS FINANCING STATEMENT.
   7-13  The secretary of state shall recognize a notice of claim of lien
   7-14  under this subchapter as a financing statement under Section 9.402,
   7-15  Business & Commerce Code.
   7-16           (Sections 128.019-128.025 reserved for expansion
   7-17                    SUBCHAPTER C.  PRIORITY OF LIEN
   7-18        Sec. 128.026.  TIME OF FILING.  (a)  A lien created under
   7-19  this chapter has the same priority as a security interest perfected
   7-20  by the filing of a financing statement on the date the notice of
   7-21  claim of lien was filed.
   7-22        (b)  A lien created under this chapter does not have priority
   7-23  over labor claims for wages and salaries for personal services that
   7-24  are provided by an employee to a lien debtor in connection with the
   7-25  production of agricultural products, the proceeds of which are
   7-26  subject to the lien.
   7-27           (Sections 128.027-128.030 reserved for expansion
    8-1              SUBCHAPTER D.  INFORMATION CONCERNING LIEN
    8-2        Sec. 128.031.  ISSUANCE OF CERTIFICATE TO MEMBER OF PUBLIC;
    8-3  FEE.  (a)  A person may obtain a certificate identifying any lien
    8-4  on file and any notice of claim of lien naming a particular debtor
    8-5  and stating the date and time of filing of each notice and the
    8-6  names and addresses of each lienholder in the certificate.
    8-7        (b)  The fee for a certificate under Subsection (a) shall be
    8-8  established by the secretary of state in an amount necessary to
    8-9  cover the cost of administering this section.
   8-10        Sec. 128.032.  COPIES OF NOTICES OF CLAIM OF LIEN AND OTHER
   8-11  NOTICES; FEE.  (a)  A person may obtain a copy of any notice of
   8-12  claim of an agricultural chemical or seed lien filed.
   8-13        (b)  The fee for a copy of a notice of claim of lien obtained
   8-14  under Subsection (a)  shall be established by the secretary of
   8-15  state in an amount necessary to cover the cost of administering
   8-16  this section.
   8-17           (Sections 128.033-128.035 reserved for expansion
   8-18                  SUBCHAPTER E.  ENFORCEMENT OF LIEN
   8-19        Sec. 128.036.  WRITTEN NOTICE TO SECURED CREDITORS BY LIEN
   8-20  CLAIMANT.  (a)  A lien claimant shall provide written notice to any
   8-21  secured creditor at least 30 days before the date the lien claimant
   8-22  enforces a claim of lien.
   8-23        (b)  For purposes of this section, "secured creditor" means
   8-24  any entity named as a secured party in a financing statement that
   8-25  is filed regarding the debtor and that covers:
   8-26              (1)  a farm product, an account, or a crop subject to
   8-27  the lien;
    9-1              (2)  a crop growing or grown on the land on which the
    9-2  agricultural chemical was applied or for which the agricultural
    9-3  seed was supplied; or
    9-4              (3)  the next crop to be grown on that land, if a crop
    9-5  is not planted.
    9-6        Sec. 128.037.  FORECLOSURE IN ACTION TO RECOVER REASONABLE OR
    9-7  AGREED CHARGES.  The lien claimant may foreclose on a lien under
    9-8  this chapter only in an action to recover the reasonable or agreed
    9-9  charges.
   9-10        Sec. 128.038.  TERMINATION STATEMENT.  (a)  If a lien
   9-11  claimant receives payment for the total amount secured by a lien
   9-12  under this chapter and the lien claimant has not furnished an
   9-13  agricultural chemical or agricultural seed during the 45-day period
   9-14  before the date on which payment is received, the lien claimant
   9-15  shall file a termination statement with the secretary of state and
   9-16  shall send the lien debtor a copy of the statement as provided by
   9-17  this section.  The statement shall state that the lien claimant no
   9-18  longer claims a security interest under the notice of claim of
   9-19  lien.
   9-20        (b)  The notice of claim of lien must be identified in the
   9-21  statement under Subsection (a) by the date, names of parties to the
   9-22  agreement, and file number of the original lien.
   9-23        (c)  If the lien claimant does not send the termination
   9-24  statement required by this section before the 11th day after the
   9-25  date on which the lien claimant received payment, the lien claimant
   9-26  is liable to the lien debtor for actual damages suffered by the
   9-27  lien debtor as a result of the failure.  If the lien claimant acts
   10-1  in bad faith in failing to send the statement, the lien claimant is
   10-2  liable for an additional penalty of $100.
   10-3        (d)  The filing officer in the secretary of state's office
   10-4  shall mark each termination statement with the date and time of
   10-5  filing and shall index the statement under the name of the lien
   10-6  debtor and under the file number of the original lien.  If the
   10-7  filing officer has a microfilm or other photographic record of the
   10-8  lien and related filings, the filing officer may destroy the  filed
   10-9  notice of claim of lien at any time after receiving the termination
  10-10  statement.  If the filing officer does not have a photographic
  10-11  record, the filing officer may destroy the filed notice of claim of
  10-12  lien at any time after the first anniversary of the date on which
  10-13  the filing officer received the termination statement.
  10-14        Sec. 128.039.  RIGHT OF ASSIGNMENT OR TRANSFER; FILING OF
  10-15  STATEMENT.  (a)  A lien created under this chapter may be assigned
  10-16  by the holder of the lien, with full rights of enforcement.
  10-17        (b)  The lienholder shall file a statement of assignment with
  10-18  the secretary of state as provided by Section 9.405, Business &
  10-19  Commerce Code.
  10-20           (Sections 128.040-128.045 reserved for expansion
  10-21                     SUBCHAPTER F.  MISCELLANEOUS
  10-22        Sec. 128.046.  RULES.  The secretary of state may adopt rules
  10-23  necessary to carry out the secretary's duties under this chapter,
  10-24  including prescribing necessary forms.
  10-25        Sec. 128.047.  MAXIMUM NUMBER OF LIENS.  Not more than four
  10-26  liens may be enforced under this chapter against the same proceeds
  10-27  of a lien debtor even if the liens are filed by different lien
   11-1  claimants.
   11-2        Sec. 128.048.  APPLICABILITY OF OTHER LAW.  Chapter 9,
   11-3  Business & Commerce Code, applies to a lien created under this
   11-4  chapter to the extent Chapter 9 is consistent with this chapter.
   11-5        SECTION 2.  Title 6, Agriculture Code, is amended by adding
   11-6  Subtitle E to read as follows:
   11-7                 SUBTITLE E.  LIENS ON ANIMAL PRODUCTS
   11-8                  CHAPTER 188.  LIENS FOR ANIMAL FEED
   11-9                   SUBCHAPTER A.  GENERAL PROVISIONS
  11-10        Sec. 188.001.  DEFINITIONS.  In this chapter:
  11-11              (1)  "Animal feed" includes:
  11-12                    (A)  commercial feed as described by Section
  11-13  141.002(a), including a substance listed by Section 141.002(c) if
  11-14  used as a feed for animals; or
  11-15                    (B)  customer-formula feed as defined under
  11-16  Section 141.001.
  11-17              (2)  "Labor" means labor or services performed in the
  11-18  delivery or preparation of animal feed provided by the seller of
  11-19  the animal feed.
  11-20              (3)  "Livestock" means cattle, sheep, goats, hogs, and
  11-21  horses.
  11-22              (4)  "Reasonable or agreed charges" means:
  11-23                    (A)  any agreed price for animal feed, including
  11-24  labor, sold to a lien debtor at the lien debtor's request; or
  11-25                    (B)  the reasonable value of animal feed,
  11-26  including labor, as of the date of delivery or preparation, if
  11-27  there is not an agreed price or an agreed method for determining
   12-1  price.
   12-2        Sec. 188.002.  PROCEEDS.  (a)  For the purposes of this
   12-3  chapter, proceeds are the amounts received by a lien debtor, before
   12-4  a deduction for taxes, fees, or assessments or a deduction made
   12-5  under a court order, from the sale of:
   12-6              (1)  the livestock for which the animal feed was used;
   12-7              (2)  meat, milk, skins, wool, or other products derived
   12-8  from that livestock; or
   12-9              (3)  issue born to that livestock.
  12-10        (b)  For the purposes of this chapter, proceeds do not
  12-11  include amounts:
  12-12              (1)  due or owing to a cooperative association under
  12-13  Chapter 51 or 52; or
  12-14              (2)  retained by a cooperative association under
  12-15  Chapter 51 or 52.
  12-16           (Sections 188.003-188.005 reserved for expansion
  12-17                    SUBCHAPTER B.  ANIMAL FEED LIEN
  12-18        Sec. 188.006.  REQUIRED NOTICE.  Before a person may claim a
  12-19  lien under this chapter, the person must send to the debtor by
  12-20  certified mail written notice that states:
  12-21              (1)  that the payment of the reasonable or agreed
  12-22  charges is more than 30 days overdue;
  12-23              (2)  the amount that is overdue;
  12-24              (3)  that the debtor has the following three
  12-25  alternatives:
  12-26                    (A)  to allow the lien to be filed;
  12-27                    (B)  to enter into an agreement granting a
   13-1  security interest in the proceeds described by Section 188.002
   13-2  under the Business & Commerce Code; or
   13-3                    (C)  to pay the reasonable or agreed charges; and
   13-4              (4)  in at least 10-point type, that:
   13-5                    (A)  the debtor has until the 10th day after the
   13-6  date on which the notice is received to select an alternative under
   13-7  Subdivision (3), notify the claimant of the alternative selected,
   13-8  and satisfy all the requirements of the selected alternative; and
   13-9                    (B)  the claimant may file the notice of claim of
  13-10  lien at any time after the 10th day after the date on which the
  13-11  debtor receives the notice if the debtor does not comply with the
  13-12  requirements of Paragraph (A).
  13-13        Sec. 188.007.  ATTACHMENT OF LIEN.  A lien established under
  13-14  this chapter attaches to the proceeds described by Section 188.002.
  13-15        Sec. 188.008.  AMOUNT OF LIEN.  The amount of a lien under
  13-16  this chapter is equal to the sum of:
  13-17              (1)  the amount of the unpaid reasonable or agreed
  13-18  charges for animal feed furnished within the 45-day period ending
  13-19  on the day the lien attaches; and
  13-20              (2)  the costs of enforcing the lien as provided by
  13-21  this chapter.
  13-22        Sec. 188.009.  PERSON ENTITLED TO FILE; EXCEPTION.  (a)
  13-23  Except as provided by Subsection (b) or by Section 188.047, a
  13-24  person who provides animal feed may file a notice of claim of lien
  13-25  as provided by this chapter.
  13-26        (b)  The claimant may not file a notice of claim of lien if
  13-27  the settlement of a dispute between the claimant and the debtor is
   14-1  pending or has not been resolved under Section 188.012.
   14-2        Sec. 188.010.  PERFECTION OF LIEN.  A lien created under this
   14-3  chapter is perfected on the filing of a notice of claim of lien
   14-4  with the secretary of state as provided by this chapter.
   14-5        Sec. 188.011.  DURATION OF NOTICE OF CLAIM OF LIEN.  (a)
   14-6  Except as otherwise provided by this chapter, the notice of claim
   14-7  of lien is effective, and a new notice of claim of lien is not
   14-8  required to maintain the lien, as long as the person who provides
   14-9  the animal feed, including labor, either:
  14-10              (1)  remains unpaid for the amount secured by the lien;
  14-11  or
  14-12              (2)  continues to provide animal feed on a regular
  14-13  basis to the lien debtor.
  14-14        (b)  For purposes of this section, providing animal feed,
  14-15  including labor, is not considered to be made on a regular basis if
  14-16  a period of more than 45 days elapses between deliveries or
  14-17  preparations.
  14-18        Sec. 188.012.  PROCEDURES FOR SETTLEMENT OF DISPUTES.  (a)
  14-19  The commissioner of agriculture by rule shall establish a procedure
  14-20  to settle a dispute between a claimant supplying animal feed and
  14-21  labor and a debtor.  The procedures must provide:
  14-22              (1)  a time requirement for submitting the dispute to
  14-23  the department;
  14-24              (2)  a time requirement within which a notice of the
  14-25  dispute must be submitted to each party; and
  14-26              (3)  a process for evaluating the dispute.
  14-27        (b)  Each party to the dispute is equally liable for the
   15-1  reasonable costs incurred by the department in carrying out this
   15-2  section.
   15-3        Sec. 188.013.  CONTENTS OF NOTICE OF CLAIM OF LIEN.  The
   15-4  notice of claim of lien must include:
   15-5              (1)  the name and address of the lien claimant;
   15-6              (2)  the name and address of the lien debtor;
   15-7              (3)  the location of the livestock for which the animal
   15-8  feed was provided;
   15-9              (4)  a statement that the payment of the reasonable or
  15-10  agreed charges is more than 30 days overdue;
  15-11              (5)  the amount that is overdue;
  15-12              (6)  a statement, signed under penalty of perjury,
  15-13  that:
  15-14                    (A)  the lien claimant sent to the lien debtor
  15-15  the notice required by Section 188.006;
  15-16                    (B)  more than 10 days have elapsed since the
  15-17  date on which the notice was received by the lien debtor; and
  15-18                    (C)  the lien debtor has not complied with the
  15-19  requirements of an alternative set out by Section 188.006; and
  15-20              (7)  a statement that the lien claimant has an animal
  15-21  feed lien under this chapter.
  15-22        Sec. 188.014.  SIGNATURE.  The notice of claim of lien shall
  15-23  be signed by the lien claimant or by a person authorized to sign
  15-24  documents of a similar kind on behalf of the claimant.
  15-25        Sec. 188.015.  FORM.  (a)  The notice of claim of lien must
  15-26  be filed on a form that satisfies the requirements of a financing
  15-27  statement under Section 9.402, Business & Commerce Code, except
   16-1  that:
   16-2              (1)  the lien claimant may be identified either as a
   16-3  lien claimant or as a secured party;
   16-4              (2)  the form must be signed by the lien claimant and
   16-5  is not required to be signed by the lien debtor; and
   16-6              (3)  in the space for the description of the
   16-7  collateral, the information specified in Sections 188.013(3), (4),
   16-8  (5), and (7) must be entered.
   16-9        (b)  A separately signed statement containing the information
  16-10  specified in Section 188.013(6) shall be attached to the form
  16-11  required under Subsection (a).
  16-12        Sec. 188.016.  FILING AND MARKING IN OFFICE OF SECRETARY OF
  16-13  STATE.  The notice of claim of lien shall be filed and marked in
  16-14  the office of the secretary of state in the same manner as a
  16-15  financing statement is filed and marked under Section 9.403,
  16-16  Business & Commerce Code.
  16-17        Sec. 188.017.  TIME OF WRITTEN NOTICE.  The lien claimant
  16-18  shall provide written notice of the claim of lien to the lien
  16-19  debtor not later than the 10th day after the date the notice of
  16-20  claim of lien is filed with the office of the secretary of state.
  16-21        Sec. 188.018.  RECOGNITION OF NOTICE AS FINANCING STATEMENT.
  16-22  The secretary of state shall recognize a notice of claim of lien
  16-23  under this subchapter as a financing statement under Section 9.402,
  16-24  Business & Commerce Code.
  16-25           (Sections 188.019-188.025 reserved for expansion
  16-26                    SUBCHAPTER C.  PRIORITY OF LIEN
  16-27        Sec. 188.026.  TIME OF FILING.  (a)  A lien created under
   17-1  this chapter has the same priority as a security interest perfected
   17-2  by the filing of a financing statement on the date the notice of
   17-3  claim of lien was filed.
   17-4        (b)  A lien created under this chapter does not have priority
   17-5  over labor claims for wages and salaries for personal services that
   17-6  are provided by an employee to a lien debtor in connection with the
   17-7  livestock, the production of animal products derived from the
   17-8  livestock, or issue born to the livestock, the proceeds of which
   17-9  are subject to the lien.
  17-10           (Sections 188.027-188.030 reserved for expansion
  17-11              SUBCHAPTER D.  INFORMATION CONCERNING LIEN
  17-12        Sec. 188.031.  ISSUANCE OF CERTIFICATE TO MEMBER OF PUBLIC;
  17-13  FEE.  (a)  A person may obtain a certificate identifying any lien
  17-14  on file and any notice of claim of lien naming a particular debtor
  17-15  and stating the date and time of filing of each notice and the
  17-16  names and addresses of each lienholder in the certificate.
  17-17        (b)  The fee for a certificate under Subsection (a) shall be
  17-18  established by the secretary of state in an amount necessary to
  17-19  cover the cost of administering this section.
  17-20        Sec. 188.032.  COPIES OF NOTICES OF CLAIM OF LIEN AND OTHER
  17-21  NOTICES; FEE.  (a)  A person may obtain a copy of any notice of
  17-22  claim of an agricultural chemical or seed lien filed.
  17-23        (b)  The fee for a copy of a notice of claim of lien obtained
  17-24  under Subsection (a) shall be established by the secretary of state
  17-25  in an amount necessary to cover the cost of administering this
  17-26  section.
  17-27           (Sections 188.033-188.035 reserved for expansion
   18-1                  SUBCHAPTER E.  ENFORCEMENT OF LIEN
   18-2        Sec. 188.036.  WRITTEN NOTICE TO SECURED CREDITORS BY LIEN
   18-3  CLAIMANT.  (a)  A lien claimant shall provide written notice to any
   18-4  secured creditor at least 30 days before the date the lien claimant
   18-5  enforces a claim of lien.
   18-6        (b)  For purposes of this section, "secured creditor" means
   18-7  any entity named as a secured party in a financing statement that
   18-8  is filed regarding the debtor and that covers an animal product, an
   18-9  account, or livestock subject to the lien.
  18-10        Sec. 188.037.  FORECLOSURE IN ACTION TO RECOVER REASONABLE OR
  18-11  AGREED CHARGES.  The lien claimant may foreclose on a lien under
  18-12  this chapter only in an action to recover the reasonable or agreed
  18-13  charges.
  18-14        Sec. 188.038.  TERMINATION STATEMENT.  (a)  If a lien
  18-15  claimant receives payment for the total amount secured by a lien
  18-16  under this chapter and the lien claimant has not furnished animal
  18-17  feed during the 45-day period before the date on which payment is
  18-18  received, the lien claimant shall file a termination statement with
  18-19  the secretary of state and shall send the lien debtor a copy of the
  18-20  statement as provided by this section.  The statement shall state
  18-21  that the lien claimant no longer claims a security interest under
  18-22  the notice of claim of lien.
  18-23        (b)  The notice of claim of lien must be identified in the
  18-24  statement under Subsection (a) by the date, names of parties to the
  18-25  agreement, and file number of the original lien.
  18-26        (c)  If the lien claimant does not send the termination
  18-27  statement required by this section before the 11th day after the
   19-1  date on which the lien claimant received payment, the lien claimant
   19-2  is liable to the lien debtor for actual damages suffered by the
   19-3  lien debtor as a result of the failure.  If the lien claimant acts
   19-4  in bad faith in failing to send the statement, the lien claimant is
   19-5  liable for an additional penalty of $100.
   19-6        (d)  The filing officer in the secretary of state's office
   19-7  shall mark each termination statement with the date and time of
   19-8  filing and shall index the statement under the name of the lien
   19-9  debtor and under the file number of the original lien.  If the
  19-10  filing officer has a microfilm or other photographic record of the
  19-11  lien and related filings, the filing officer may destroy the filed
  19-12  notice of claim of lien at any time after receiving the termination
  19-13  statement.  If the filing officer does not have a photographic
  19-14  record, the filing officer may destroy the filed notice of claim of
  19-15  lien at any time after the first anniversary of the date on which
  19-16  the filing officer received the termination statement.
  19-17        Sec. 188.039.  RIGHT OF ASSIGNMENT OR TRANSFER; FILING OF
  19-18  STATEMENT.  (a)  A lien created under this chapter may be assigned
  19-19  by the holder of the lien, with full rights of enforcement.
  19-20        (b)  The lienholder shall file a statement of assignment with
  19-21  the secretary of state as provided by Section 9.405, Business &
  19-22  Commerce Code.
  19-23           (Sections 188.040-188.045 reserved for expansion
  19-24                     SUBCHAPTER F.  MISCELLANEOUS
  19-25        Sec. 188.046.  RULES.  The secretary of state may adopt rules
  19-26  necessary to carry out the secretary's duties under this chapter,
  19-27  including prescribing necessary forms.
   20-1        Sec. 188.047.  MAXIMUM NUMBER OF LIENS.  Not more than four
   20-2  liens may be enforced under this chapter against the same proceeds
   20-3  of a lien debtor even if the liens are filed by different lien
   20-4  claimants.
   20-5        Sec. 188.048.  APPLICABILITY OF OTHER LAW.  Chapter 9,
   20-6  Business & Commerce Code, applies to a lien created under this
   20-7  chapter to the extent Chapter 9 is consistent with this chapter.
   20-8        SECTION 3.  (a)  Chapter 128, Agriculture Code, as added by
   20-9  this Act, applies to an agricultural chemical or agricultural seed
  20-10  and labor supplied on or after the effective date of this Act.
  20-11        (b)  Chapter 188, Agriculture Code, as added by this Act,
  20-12  applies to animal feed and labor supplied on or after the effective
  20-13  date of this Act.
  20-14        SECTION 4.  This Act takes effect September 1, 1995.
  20-15        SECTION 5.  The importance of this legislation and the
  20-16  crowded condition of the calendars in both houses create an
  20-17  emergency and an imperative public necessity that the
  20-18  constitutional rule requiring bills to be read on three several
  20-19  days in each house be suspended, and this rule is hereby suspended.