S.B. No. 1339
 
 
 
 
AN ACT
  relating to the perfection and priority of an agricultural lien on
  an agricultural crop.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 70.401(4), Property Code, is amended to
  read as follows:
               (4)  "Contract purchaser" means a person who[, before
  the planting of an agricultural crop,] has agreed under a [written]
  contract to purchase an agricultural [the] crop or otherwise pay
  the agricultural producer for growing, producing, or harvesting the
  agricultural crop. The term does not include a person who, as to
  the transaction in question, is licensed and bonded under Chapter
  14, Agriculture Code, or the United States Warehouse Act (7 U.S.C.
  Section 241 et seq.).
         SECTION 2.  Sections 70.402(a) and (b), Property Code, are
  amended to read as follows:
         (a)  An agricultural producer who, under a [written]
  contract with a contract purchaser, is to receive consideration for
  selling an agricultural crop grown, produced, or harvested by the
  producer has a lien for the amount owed under the contract, or for
  the reasonable value of the crop on the date of transfer or delivery
  if there is no agreement [provision] concerning the amount owed
  under the contract [in the agreement].
         (b)  A lien created under this subchapter is on every
  agricultural crop, either in raw or processed form, that has been
  transferred or delivered by the agricultural producer and is in the
  possession of the contract purchaser, and if the contract purchaser
  sells all or part of the crop, on the proceeds of the sale. If the
  agricultural crop is commingled after the crop has been transferred
  or delivered, a lien created under this subchapter applies only to
  that portion of the contract purchaser's inventory in an amount
  that is equal to the amount of the crop transferred or delivered by
  the agricultural producer.
         SECTION 3.  Section 70.403, Property Code, is amended to
  read as follows:
         Sec. 70.403.  WHEN LIEN ATTACHES. A lien created under this
  subchapter attaches [to the agricultural crop] on the date on which
  physical possession of the agricultural crop is delivered or
  transferred by the agricultural producer to the contract purchaser
  or the purchaser's agent, or if there is to be a series of
  deliveries to the contract purchaser or purchaser's agent, on the
  date of the first [last] delivery of the agricultural crop to the
  contract purchaser or purchaser's agent.
         SECTION 4.  Section 70.404, Property Code, is amended to
  read as follows:
         Sec. 70.404.  APPLICABILITY OF OTHER LAW.  Except as
  provided by Section 70.4045, Chapter 9, Business & Commerce Code,
  including applicable filing and perfection requirements, applies
  to a lien created under this subchapter.
         SECTION 5.  Subchapter E, Chapter 70, Property Code, is
  amended by adding Section 70.4045 to read as follows:
         Sec. 70.4045.  PERFECTION AND PRIORITY OF AGRICULTURAL LIEN
  ON CROPS. (a)  Notwithstanding Chapter 9, Business & Commerce
  Code, a lien created under this subchapter is perfected at the time
  the lien attaches under Section 70.403 and continues to be
  perfected if a financing statement covering the agricultural crop
  is filed on or before the 90th day after the date:
               (1)  the physical possession of the crop is delivered
  or transferred by the agricultural producer to the contract
  purchaser or the purchaser's agent, if there is only one delivery
  under the contract; or
               (2)  of the last delivery of the crop to the contract
  purchaser or the purchaser's agent, if there is a series of
  deliveries under the contract.
         (b)  If a financing statement covering the agricultural crop
  is not filed within the time prescribed by Subsection (a)(1) or (2),
  as applicable, the lien is considered unperfected on the date the
  lien attached until the date the financing statement is filed or the
  lien is perfected under Chapter 9, Business & Commerce Code.
         (c)  Notwithstanding Chapter 9, Business & Commerce Code, a
  lien created and perfected under this subchapter has priority over
  a conflicting security interest in or lien on the agricultural crop
  or the proceeds from the sale of the crop created by the contract
  purchaser in favor of a third party, other than a cotton ginner's
  lien created under Section 70.003(d), regardless of the date the
  security interest or lien created by the contract purchaser
  attached.  This subsection does not affect a security interest or
  lien created and perfected to secure a loan directly to the
  agricultural producer.
         SECTION 6.  The changes in law made by this Act apply only to
  a lien that attaches under Section 70.403, Property Code, as
  amended by this Act, on or after the effective date of this Act. A
  lien that attaches before the effective date of this Act is governed
  by the law as it existed immediately before that date, and that law
  is continued in effect for that purpose.
         SECTION 7.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1339 passed the Senate on
  April 9, 2015, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1339 passed the House on
  May 22, 2015, by the following vote:  Yeas 140, Nays 0,
  two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor