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.