1-1     By:  Duncan                                           S.B. No. 1639

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Jurisprudence;

 1-4     April 16, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 7, Nays 0; April 16, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Duncan

 1-7     Amend S.B. No. 1639 by making the following changes:

 1-8           (1)  On page 1, line 39, after the word "owner" insert ", and

 1-9     any other person having a lien on the cotton who has given actual

1-10     notice of that lien to the lienholder under this subsection,"

1-11           (2)  On page 1, line 42, strike the words "at a public sale"

1-12     and replace with, "under any procedure authorized by Section 9.504,

1-13     Business & Commerce Code"

1-14           (3)  On page 1, line 47, strike the word "property" and

1-15     replace with "cotton"

1-16           (4)  On page 1, line 47, strike the word "public" and replace

1-17     with "commercially reasonable"

1-18                            A BILL TO BE ENTITLED

1-19                                   AN ACT

1-20     relating to a lien for the processing or harvesting of cotton.

1-21           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-22           SECTION 1.  The heading of Section 70.003, Property Code, is

1-23     amended to read as follows:

1-24           Sec. 70.003.  STABLE KEEPER'S, GARAGEMAN'S, [AND] PASTURER'S,

1-25     AND COTTON GINNER'S LIENS.

1-26           SECTION 2.  Section 70.003, Property Code, is amended by

1-27     adding Subsection (d) to read as follows:

1-28           (d)  A cotton ginner to whom a cotton crop has been delivered

1-29     for processing or who, under an agreement, is to be paid for

1-30     harvesting a cotton crop has a lien on the cotton processed or

1-31     harvested for the amount of the charges for the processing or

1-32     harvesting.  The lienholder is entitled to retain possession of the

1-33     cotton until the amount of the charge due under an agreement is

1-34     paid or, if an amount is not specified by agreement, the reasonable

1-35     and usual compensation is paid.  If the cotton owner's address is

1-36     known and the amount of the charge is  not paid before the 31st day

1-37     after the date the cotton ginner's work is completed or the date

1-38     payment is due under a written agreement, whichever is later, the

1-39     lienholder shall request the owner to pay the unpaid charge due and

1-40     shall notify the owner of the fact that unless payment is made not

1-41     later than the 15th day after the date the notice is received, the

1-42     lienholder is entitled to sell the cotton at a public sale.  If the

1-43     cotton owner's address is not known and the amount of the charge is

1-44     not paid before the 61st day after the date the cotton ginner's

1-45     work is completed or the date payment is due under a written

1-46     agreement, whichever is later, the lienholder is entitled to sell

1-47     the property without notice at a public sale.  The proceeds of a

1-48     sale under this subsection shall be applied first to charges due

1-49     under this subsection, and any remainder shall be paid in

1-50     appropriate proportion to:

1-51                 (1)  any other person having a lien on the cotton who

1-52     has given actual notice of that lien to the lienholder under this

1-53     subsection; and

1-54                 (2)  the cotton owner.

1-55           SECTION 3.  The heading of Section 70.005, Property Code, is

1-56     amended to read as follows:

1-57           Sec. 70.005.  SALE OF PROPERTY [OTHER THAN MOTOR VEHICLE].

1-58           SECTION 4.  Subsection (a), Section 70.005, Property Code, is

1-59     amended to read as follows:

1-60           (a)  A person holding a lien under this subchapter on

1-61     property other than a motor vehicle subject to Chapter 501,

1-62     Transportation Code [the Certificate of Title Act, as amended

1-63     (Article 6687-1, Vernon's Texas Civil Statutes)], or cotton under

1-64     Section 70.003(d), who retains possession of the property for 60

 2-1     days after the day that the charges accrue shall request the owner

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

 2-3     state and known. If the charges are not paid before the 11th day

 2-4     after the day of the request, the lienholder may, after 20 days'

 2-5     notice, sell the property at a public sale, or if the lien is on a

 2-6     garment, at a public or private sale.

 2-7           SECTION 5.  Subsection (d), Section 70.003, Property Code, as

 2-8     added by this Act, applies only to an amount that becomes due for

 2-9     processing or harvesting of cotton on or after the effective date

2-10     of this Act.

2-11           SECTION 6.  This Act takes effect September 1, 1997.

2-12           SECTION 7.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.

2-17                                  * * * * *