HBA-JRA H.B. 3149 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3149
By: Hardcastle
Agriculture & Livestock
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

Professionals in agricultural chemical and seed industries are sometimes
left unpaid for services rendered to farmers after a crop is harvested for
which a primary lien exists, as a farmer is allowed to obtain additional
financing which also takes priority over the secondary lien imposed by such
support industries.  H.B. 3149 provides that a secondary lien takes
priority over additional liens after payment of the primary lien. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 128.002, Agriculture Code, by adding Subsection
(b), as follows: 

(b)  Provides that, to the extent proceeds under Subsection (a) (from the
sale of certain crops of a lien debtor) are insufficient to pay the entire
amount of a lien secured under this chapter (Agricultural Chemical and Seed
Liens), proceeds also include the amounts received by a lien debtor, before
a deduction for taxes, fees, or assessments or a deduction made under a
court order, from the sale of the debtor's next crop on the same land after
the crop to which the lien applies.  Provides that a lien on the proceeds
described by this subsection is considered to attach at the time the lien
attached to the proceeds described by Subsection (a). 

Redesignates existing Subsection (b) to Subsection (c).

SECTION 2.  Effective date: September 1, 1999.
Makes application of this Act prospective.

SECTION 3.  Emergency clause.