SRC-AMY S.B. 995 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 995
By: Williams
Business & Commerce
6/25/2003
Enrolled

DIGEST AND PURPOSE 

The 76th Texas Legislature revised Chapter 9 of the Business & Commerce
Code, and the 77th Texas Legislature added technical amendments.  Even
after the revision and amendments some portions of Chapter 9 remain
unclear.  S.B. 995 adds language to clarify the focus of certain sections
of Chapter 9, Business & Commerce Code.  This bill also adds a transaction
that is automatically perfected upon attachment and provides that a record
of a mortgage is effective as a financing statement that covers
as-extracted collateral or timber that is to be cut. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 9.102(a)(5), Business & Commerce Code, to
redefine "agricultural lien" by deleting the exemption of a security
interest from the definition. 

SECTION 2.  Amends Section 9.102(a)(46), Business & Commerce Code, to
redefine "health care insurance receivable" to include services to be
provided, in addition to services provided. 

SECTION 3.  Amends Section 9.304(b), Business & Commerce Code, to amend
the first rule in the list of rules used to determine a bank's
jurisdiction, for the purposes of this subchapter, by replacing the
reference to "the debtor" with "its customer." 

SECTION 4.  Amends Section 9.039, Business & Commerce Code, to include a
sale by an individual of an account that is a right to payment of winnings
in a lottery or other game of chance in the list of interests that are
perfected through attachment.  Makes nonsubstantive changes. 

SECTION 5.  Amends Section 9.515(g), Business & Commerce Code, to provide
that a record of a mortgage that is effective as a financing statement
filed as a fixture filing or as a financing statement covering
as-extracted collateral or timber to be cut under Section 9.502(c)
(Contents of Financing Statement; Record of Mortgage as Financing
Statement; Time of Financing Filing Financing Statement) remains effective
as a financing statement filed as a fixture filing or as a financing
statement covering as-extracted collateral or timber to be cut until the
mortgage is released or satisfied of record or its effectiveness otherwise
terminates as to the real property. 

SECTION 6.  Provides that the purpose of the amendments to Sections 9.102
(Definitions and Index of Definitions) and 9.304 (Law Governing Perfection
and Priority of Security), Business & Commerce Code, by this Act is, is to
clarify existing law. 

SECTION 7.  (a) Makes application of this Act prospective, except as
provided by Subsection (b) of this section. 

(b) Provides that a security interest described by Section 9.309(14)
(Security Interest Perfected Upon Attachment), Business & Commerce Code,
as added by this Act, that attached by was not perfected before the
effective date of this Act is perfected automatically on the effective
date of this Act. 
 
(c) Makes application of this Act prospective.

(d) Provides that nothing in SECTION 4 of this Act is intended to replace
or otherwise affect any requirement of Chapter 466, Government Code. 

SECTION 8.  Effective date: September 1, 2003.