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.