75R10264 CAS-F                           

         By Walker                                             H.B. No. 2762

         Substitute the following for H.B. No. 2762:

         By Roman                                          C.S.H.B. No. 2762

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to a lien for the processing or harvesting of cotton.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  The heading of Section 70.003, Property Code, is

 1-5     amended to read as follows:

 1-6           Sec. 70.003.  STABLE KEEPER'S, GARAGEMAN'S, [AND] PASTURER'S,

 1-7     AND COTTON GINNER'S LIENS.

 1-8           SECTION 2.  Section 70.003, Property Code, is amended by

 1-9     adding Subsection (d) to read as follows:

1-10           (d)  A cotton ginner to whom a cotton crop has been delivered

1-11     for processing or who, under an agreement, is to be paid for

1-12     harvesting a cotton crop has a lien on the cotton processed or

1-13     harvested for the amount of the charges for the processing or

1-14     harvesting.  The lienholder is entitled to retain possession of the

1-15     cotton until the amount of the charge due under an agreement is

1-16     paid or, if an amount is not specified by agreement, the reasonable

1-17     and usual compensation is paid.  If the cotton owner's address is

1-18     known and the amount of the charge is  not paid before the 31st day

1-19     after the date the cotton ginner's work is completed or the date

1-20     payment is due under a written agreement, whichever is later, the

1-21     lienholder shall request the owner to pay the unpaid charge due and

1-22     shall notify the owner and any other person having a lien on the

1-23     cotton who has given actual notice of that lien to the lienholder

1-24     under this subsection of the fact that unless payment is made not

 2-1     later than the 15th day after the date the notice is received, the

 2-2     lienholder under this subsection is entitled to sell the cotton in

 2-3     any manner authorized by Section 9.504, Business & Commerce Code.

 2-4     If the cotton owner's address is not known and the amount of the

 2-5     charge is not paid before the 61st day after the date the cotton

 2-6     ginner's work is completed or the date payment is due under a

 2-7     written agreement, whichever is later, the lienholder is entitled

 2-8     to sell the cotton without notice in a commercially reasonable

 2-9     manner.  The proceeds of a sale under this subsection shall be

2-10     applied first to charges due under this subsection, and any

2-11     remainder shall be paid in appropriate proportion to:

2-12                 (1)  any other person having a lien on the cotton who

2-13     has given actual notice of that lien to the lienholder under this

2-14     subsection; and

2-15                 (2)  the cotton owner.

2-16           SECTION 3.  The heading of Section 70.005, Property Code, is

2-17     amended to read as follows:

2-18           Sec. 70.005.  SALE OF PROPERTY [OTHER THAN MOTOR VEHICLE].

2-19           SECTION 4.  Section 70.005(a), Property Code, is amended to

2-20     read as follows:

2-21           (a)  A person holding a lien under this subchapter on

2-22     property other than a motor vehicle subject to Chapter 501,

2-23     Transportation Code [the Certificate of Title Act, as amended

2-24     (Article 6687-1, Vernon's  Texas Civil Statutes)], or cotton under

2-25     Section 70.003(d), who retains possession of the property for 60

2-26     days after the day that the charges accrue shall request the owner

2-27     to pay the unpaid charges due if the owner's residence is in this

 3-1     state and known.  If the charges are not paid before the 11th day

 3-2     after the day of the request, the lienholder may, after 20 days'

 3-3     notice, sell the property at a public sale, or if the lien is on a

 3-4     garment, at a public or private sale.

 3-5           SECTION 5.  Section 70.003(d), Property Code, as added by

 3-6     this Act, applies only to an amount that becomes due for processing

 3-7     or harvesting of cotton on or after the effective date of this Act.

 3-8           SECTION 6.  This Act takes effect September 1, 1997.

 3-9           SECTION 7.  The importance of this legislation and the

3-10     crowded condition of the calendars in both houses create an

3-11     emergency and an imperative public necessity that the

3-12     constitutional rule requiring bills to be read on three several

3-13     days in each house be suspended, and this rule is hereby suspended.