HBA-BSM H.B. 1262 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1262
By: Hardcastle
Agriculture & Livestock
2/15/2001
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 and
for which a primary lien exists and a secondary lien is placed by the
support industry.  Subsequently, a farmer is then allowed to obtain
additional financing which again takes priority over the second lien placed
by the support industry.  House Bill 1262 protects creditors by extending
the definition of proceeds to include an additional crop. 

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. 

ANALYSIS

House Bill 1262 amends the Agriculture Code to provide that to the extent
that proceeds from the first or existing crop are insufficient to pay the
entire amount of a lien, proceeds also include the amounts received by a
lien debtor from the sale of the debtor's next crop on the same land after
the crop to which the lien applies.  A lien on the proceeds of the next
crop is considered to attach at the time the lien attached to the first or
existing crop. 

EFFECTIVE DATE

September 1, 2001.