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