| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to acreage contracts and quantity contracts for the |
|
|
purchase of agricultural products. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. This Act may be cited as the Producer Protection |
|
|
Act. |
|
|
SECTION 2. Subtitle D, Title 5, Agriculture Code, is |
|
|
amended by adding Chapter 104 to read as follows: |
|
|
CHAPTER 104. ACREAGE CONTRACTS AND QUANTITY CONTRACTS |
|
|
Sec. 104.001. DEFINITIONS. In this chapter: |
|
|
(1) "Acreage contract" means a contract that requires |
|
|
a producer to deliver to a purchaser all of the production of a |
|
|
specified agricultural product grown on land described in the |
|
|
contract. The term does not include a contract that requires a |
|
|
producer to deliver a specified quantity of an agricultural |
|
|
product. |
|
|
(2) "Producer" means a person who produces an |
|
|
agricultural product and sells the product under an acreage |
|
|
contract or a quantity contract. |
|
|
(3) "Purchaser" means a person who purchases an |
|
|
agricultural product under an acreage contract or a quantity |
|
|
contract. |
|
|
(4) "Quantity contract" means a contract that requires |
|
|
a producer to deliver to a purchaser a specified quantity of an |
|
|
agricultural product, regardless of the amount of the product grown |
|
|
by the producer. |
|
|
Sec. 104.002. CONTRACT TYPE DISCLOSURE. A contract between |
|
|
a producer and a purchaser regarding an agricultural product must |
|
|
clearly and conspicuously state on its face that it is an acreage |
|
|
contract or a quantity contract, as applicable. |
|
|
Sec. 104.003. PRODUCER'S ESTIMATE FOR ACREAGE CONTRACT; |
|
|
PREREQUISITE TO SUIT BY PURCHASER. (a) A purchaser may request from |
|
|
a producer information supporting the producer's estimate of |
|
|
production under an acreage contract. |
|
|
(b) A purchaser may not file suit against a producer based |
|
|
on inaccuracies in the producer's estimate of production under an |
|
|
acreage contract unless the purchaser makes a written request for |
|
|
information under Subsection (a) not later than the 30th day after |
|
|
the date the acreage contract is executed. |
|
|
SECTION 3. Chapter 104, Agriculture Code, as added by this |
|
|
Act, applies only to a contract executed on or after the effective |
|
|
date of this Act. A contract executed before the effective date of |
|
|
this Act is governed by the law in effect when the contract was |
|
|
executed, and the former law is continued in effect for that |
|
|
purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2017. |