By:  Duncan                                           S.B. No. 1639

                                A BILL TO BE ENTITLED

                                       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)  A cotton ginner to whom a cotton crop has been delivered

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

1-11     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 who has given actual notice of that lien to the lienholder

1-23     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 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                 (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.  Subsection (a), Section 70.005, Property Code, is

2-20     amended to 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

 3-1     days after the day that the charges accrue shall request the owner

 3-2     to pay the unpaid charges due if the owner's residence is in this

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

 3-4     after the day of the request, the lienholder may, after 20 days'

 3-5     notice, sell the property at a public sale, or if the lien is on a

 3-6     garment, at a public or private sale.

 3-7           SECTION 5.  Subsection (d), Section 70.003, Property Code, as

 3-8     added by this Act, applies only to an amount that becomes due for

 3-9     processing or harvesting of cotton on or after the effective date

3-10     of this Act.

3-11           SECTION 6.  This Act takes effect September 1, 1997.

3-12           SECTION 7.  The importance of this legislation and the

3-13     crowded condition of the calendars in both houses create an

3-14     emergency and an imperative public necessity that the

3-15     constitutional rule requiring bills to be read on three several

3-16     days in each house be suspended, and this rule is hereby suspended.

3-17                          COMMITTEE AMENDMENT NO. 1

3-18           Amend Section 2 on page 1, line 22, by deleting the phrase

3-19     who has given actual notice of that lien to the lienholder under

3-20     this subsection and inserting in its place the phrase which is

3-21     properly recorded under applicable law with the Secretary of State

3-22     and on page 2, line 12, by deleting the phrase who has given actual

3-23     notice of that lien to the lienholder under this subsection and

3-24     inserting in its place the phrase which is properly recorded under

3-25     applicable law with the Secretary of State.

 4-1     On page 2, after line 15 add the following:  Nothing herein shall

 4-2     be construed to place an affirmative burden upon the cotton ginner

 4-3     to perform any lien searches except as may be appropriate to

 4-4     provide notices required by this section.

 4-5                                                                  Rabuck