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.