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A BILL TO BE ENTITLED
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AN ACT
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relating to creation, attachment, perfection, and enforcement of |
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certain liens in the slaughtering of livestock. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 148.026, Agriculture Code, is amended by |
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amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) Notwithstanding Chapter 9, Business & Commerce Code, or |
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any other law, a [A] lien under this section is attached and |
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perfected on delivery of the livestock to the purchaser without |
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further action, including the filing of a financial statement. The |
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lien continues as to the animal, its carcass, its products, and the |
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proceeds of any sale without regard to possession by the party |
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entitled to the lien. |
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(c) A provision of this section that relates to the |
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creation, attachment, perfection, or enforcement of a lien controls |
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to the extent of a conflict with Chapter 9, Business & Commerce |
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Code, or other applicable law. |
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SECTION 2. The heading to Section 148.026, Agriculture |
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Code, is amended to read as follows: |
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Sec. 148.026. SELLER'S LIEN. |
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SECTION 3. Section 148.027(a), Agriculture Code, is amended |
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to read as follows: |
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(a) If an animal, its carcass, or its products is under a |
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lien under Section 148.026 and is commingled with other livestock, |
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carcasses, or products so that the identity is lost, the lien |
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extends to all of the commingled animals, carcasses, or products as |
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if the lien had been perfected originally in all of them. |
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SECTION 4. Section 148.028, Agriculture Code, is amended to |
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read as follows: |
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Sec. 148.028. PRIORITY OF SELLER'S LIEN. (a) Except as |
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provided by Subsection (b), a [A] lien under Section 148.026 [this
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subchapter] has priority over any other lien or perfected security |
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interest in the animal, its carcass, its products, or proceeds from |
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the sale of the animal, its carcass, or its products. |
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(b) A lien under Section 148.031 on an animal, its carcass, |
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its products, or any proceeds from the disposition of the animal, |
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its carcass, or its products has priority over a lien under Section |
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148.026. |
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SECTION 5. Subchapter C, Chapter 148, Agriculture Code, is |
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amended by adding Section 148.031 to read as follows: |
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Sec. 148.031. TERMINAL LIVESTOCK FEEDING FACILITY LIEN. |
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(a) In this section, "terminal livestock feeding facility" means a |
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facility that provides feeding and care to livestock that are left |
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with the facility for preparation for slaughter. |
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(b) To secure the payment of the charges for the services |
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provided by a terminal livestock feeding facility, the facility has |
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a lien on: |
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(1) each animal left with the facility; |
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(2) the products from each animal; and |
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(3) all proceeds from the disposition of each animal, |
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its carcass, or its products. |
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(c) A lien under this section secures the amount of charges |
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due under an agreement or, if an amount is not specified by |
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agreement, the reasonable and usual compensation for services that |
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are similar to the services provided by the terminal livestock |
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feeding facility. |
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(d) Notwithstanding Chapter 9, Business & Commerce Code, or |
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any other law, a lien under this section attaches on the date on |
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which a terminal livestock feeding facility first provides feed and |
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care to an animal left with the facility and is perfected on |
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attachment and remains perfected without further action by the |
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facility, including the filing of a financial statement. Until the |
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lien is satisfied, the lien continues as to the animal, its carcass, |
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its products, and any proceeds from the disposition of the animal, |
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its carcass, or its products regardless of whether the facility |
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retains possession of the animal. |
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(e) A lien under this section has priority over any other |
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lien or perfected security interest in an animal, its carcass, its |
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products, or any proceeds from the disposition of the animal, its |
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carcass, or its products, regardless of whether the lien under this |
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section was created or perfected after the date on which another |
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lien was created or perfected. |
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(f) A person who acquires an interest in an animal, its |
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carcass, its products, or any proceeds from the disposition of the |
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animal, its carcass, or its products subject to a lien under this |
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section shall pay to the terminal livestock feeding facility the |
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amount of the charges secured by the lien. |
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(g) A terminal livestock feeding facility holding a lien |
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under this section may enforce that lien in any manner authorized by |
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Chapter 9, Business & Commerce Code, and may recover: |
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(1) the reasonable costs of collection and |
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enforcement; and |
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(2) the reasonable attorney's fees and legal expenses |
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incurred by the facility. |
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(h) A provision of this section that relates to the |
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creation, attachment, perfection, or enforcement of a lien controls |
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to the extent of a conflict with Chapter 9, Business & Commerce |
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Code, or other applicable law. |
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SECTION 6. This Act takes effect September 1, 2017. |