AN ACT

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

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  The heading of Section 70.003, Property Code, is

 1-4     amended to read as follows:

 1-5           Sec. 70.003.  STABLE KEEPER'S, GARAGEMAN'S, [AND] PASTURER'S,

 1-6     AND COTTON GINNER'S LIENS.

 1-7           SECTION 2.  Section 70.003, Property Code, is amended by

 1-8     adding Subsection (d) to read as follows:

 1-9           (d)(1)  A cotton ginner to whom a cotton crop has been

1-10     delivered for processing or who, under an agreement, is to be paid

1-11     for harvesting a cotton crop has a lien on the cotton processed or

1-12     harvested for the amount of the charges for the processing or

1-13     harvesting.  The lienholder is entitled to retain possession of the

1-14     cotton until the amount of the charge due under an agreement is

1-15     paid or, if an amount is not specified by agreement, the reasonable

1-16     and usual compensation is paid.  If the cotton owner's address is

1-17     known and the amount of the charge is  not paid before the 31st day

1-18     after the date the cotton ginner's work is completed or the date

1-19     payment is due under a written agreement, whichever is later, the

1-20     lienholder shall request the owner to pay the unpaid charge due and

1-21     shall notify the owner and any other person having a lien on the

1-22     cotton which is properly recorded under applicable law with the

1-23     secretary of state 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 is entitled to sell the cotton under any procedure

 2-3     authorized by Section 9.504, Business & Commerce Code.  If the

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

 2-5     not paid before the 61st day after the date the cotton ginner's

 2-6     work is completed or the date payment is due under a written

 2-7     agreement, whichever is later, the lienholder is entitled to sell

 2-8     the cotton without notice at a commercially reasonable sale.  The

 2-9     proceeds of a sale under this subsection shall be applied first to

2-10     charges due under this subsection, and any remainder shall be paid

2-11     in appropriate proportion to:

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

2-13     which is properly recorded under applicable law with the secretary

2-14     of state; and

2-15                       (B)  the cotton owner.

2-16                 (2)  Nothing in this subsection shall be construed to

2-17     place an affirmative burden on the cotton ginner to perform any

2-18     lien searches except as may be appropriate to provide notices

2-19     required by this section.

2-20           SECTION 3.  The heading of Section 70.005, Property Code, is

2-21     amended to read as follows:

2-22           Sec. 70.005.  SALE OF PROPERTY [OTHER THAN MOTOR VEHICLE].

2-23           SECTION 4.  Subsection (a), Section 70.005, Property Code, is

2-24     amended to read as follows:

2-25           (a)  A person holding a lien under this subchapter on

 3-1     property other than a motor vehicle subject to Chapter 501,

 3-2     Transportation Code [the Certificate of Title Act, as amended

 3-3     (Article 6687-1, Vernon's Texas Civil Statutes)], or cotton under

 3-4     Section 70.003(d), who retains possession of the property for 60

 3-5     days after the day that the charges accrue shall request the owner

 3-6     to pay the unpaid charges due if the owner's residence is in this

 3-7     state and known.  If the charges are not paid before the 11th day

 3-8     after the day of the request, the lienholder may, after 20 days'

 3-9     notice, sell the property at a public sale, or if the lien is on a

3-10     garment, at a public or private sale.

3-11           SECTION 5.  Subsection (d), Section 70.003, Property Code, as

3-12     added by this Act, applies only to an amount that becomes due for

3-13     processing or harvesting of cotton on or after the effective date

3-14     of this Act.

3-15           SECTION 6.  This Act takes effect September 1, 1997.

3-16           SECTION 7.  The importance of this legislation and the

3-17     crowded condition of the calendars in both houses create an

3-18     emergency and an imperative public necessity that the

3-19     constitutional rule requiring bills to be read on three several

3-20     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1639 passed the Senate on

         April 29, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 15, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1639 passed the House, with

         amendment, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor