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