By Hardcastle                                         H.B. No. 1262
         77R5494 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to priority of agricultural liens on future crops.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 128.002, Agriculture Code, is amended by
 1-5     adding a new Subsection (b) and redesignating existing Subsection
 1-6     (b) as Subsection (c) to read as follows:
 1-7           (b)  To the extent proceeds under Subsection (a) are
 1-8     insufficient to pay the entire amount of a lien secured under this
 1-9     chapter, proceeds also include the amounts received by a lien
1-10     debtor, before a deduction for taxes, fees, or assessments or a
1-11     deduction made under a court order, from the sale of the debtor's
1-12     next crop on the same land after the crop to which the lien applies
1-13     under Subsection (a).  A lien on the proceeds described by this
1-14     subsection is considered to attach at the time the lien attached to
1-15     the proceeds described by Subsection (a).
1-16           (c)  For the purposes of this chapter, the following are not
1-17     included as proceeds:
1-18                 (1)  amounts due or owing to a cooperative association
1-19     under Chapter 51 or 52; or
1-20                 (2)  amounts retained by a cooperative association
1-21     under Chapter 51 or 52.
1-22           SECTION 2.  (a)  This Act takes effect September 1, 2001.
1-23           (b)  The change in law made by this Act applies only to a
1-24     lien that attaches under Chapter 128, Agriculture Code, on or after
 2-1     the effective date of this Act.  A lien that attached under that
 2-2     chapter before the effective date of this Act is covered by the law
 2-3     in effect when the lien attached, and the former law is continued
 2-4     in effect for that purpose.