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A BILL TO BE ENTITLED
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AN ACT
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relating to a study regarding the feasibility of implementing a |
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central filing system for the filing of financing statements for |
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security interests in farm products. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITIONS. In this Act: |
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(1) "Security interest" has the meaning assigned by |
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Section 1.201, Business & Commerce Code. |
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(2) "Buyer" means a person who, in the ordinary course |
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of business, buys farm products from another person who is engaged |
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in farming operations and who is in the business of selling farm |
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products. |
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(3) "Commission merchant" means a person engaged in |
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the business of receiving a farm product for the purpose of selling |
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the farm product on commission or on behalf of another person. |
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(4) "Farm products" has the meaning assigned by |
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Section 9.102, Business & Commerce Code. |
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(5) "Financing statement" has the meaning assigned by |
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Section 9.102, Business & Commerce Code. |
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(6) "Selling agent" means a person, other than a |
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commission merchant, who is engaged in the business of negotiating |
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the sale or purchase of a farm product on behalf of a person engaged |
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in farming operations. |
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SECTION 2. FEASIBILITY STUDY ON CENTRAL FILING SYSTEM. |
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(a) The secretary of state shall conduct a study on the |
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feasibility of developing and implementing a central filing system |
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to be used for the filing of all financing statements that cover |
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farm products being sold and purchased in this state that are |
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subject to a security interest. |
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(b) The study conducted under this section must evaluate |
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proposals for a central filing system that allows: |
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(1) a secured party to file a financing statement in |
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the system that covers farm products; and |
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(2) a buyer, commission merchant, selling agent, or |
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other person to search the system to determine whether the farm |
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product is subject to a security interest based on the information |
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contained in a financing statement that is filed in the system. |
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SECTION 3. REPORT. Not later than January 12, 2021, the |
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secretary of state shall report the results of the study and any |
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recommendations to the legislature. The report must include any |
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proposed legislation necessary to implement the recommendations |
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made in the report. |
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SECTION 4. EXPIRATION. This Act expires June 1, 2021. |
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SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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1, 2019. |