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