Bill Text: TX HB338 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to acreage contracts and quantity contracts for the purchase of agricultural products.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - Effective on 9/1/17 [HB338 Detail]
Download: Texas-2017-HB338-Enrolled.html
H.B. No. 338 |
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relating to acreage contracts and quantity contracts for the | ||
purchase of agricultural products. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. This Act may be cited as the Producer Protection | ||
Act. | ||
SECTION 2. Subtitle D, Title 5, Agriculture Code, is | ||
amended by adding Chapter 104 to read as follows: | ||
CHAPTER 104. ACREAGE CONTRACTS AND QUANTITY CONTRACTS | ||
Sec. 104.001. DEFINITIONS. In this chapter: | ||
(1) "Acreage contract" means a contract that requires | ||
a producer to deliver to a purchaser all of the production of a | ||
specified agricultural product grown on land described in the | ||
contract, unless clearly and conspicuously stated otherwise in the | ||
contract's language. The term does not include a contract that | ||
requires a producer to deliver a specified quantity of an | ||
agricultural product. | ||
(2) "Producer" means a person who produces an | ||
agricultural product and sells the product under an acreage | ||
contract or a quantity contract. | ||
(3) "Purchaser" means a person who purchases an | ||
agricultural product under an acreage contract or a quantity | ||
contract. | ||
(4) "Quantity contract" means a contract that requires | ||
a producer to deliver to a purchaser a specified quantity of an | ||
agricultural product, regardless of the amount of the product grown | ||
by the producer. | ||
Sec. 104.002. CONTRACT TYPE DISCLOSURE. A contract between | ||
a producer and a purchaser regarding an agricultural product must | ||
clearly and conspicuously state on its face that it is an acreage | ||
contract or a quantity contract, as applicable. | ||
Sec. 104.003. SUIT BY PURCHASER UNDER ACREAGE CONTRACT. A | ||
purchaser may not file suit against a producer under an acreage | ||
contract unless the producer knowingly fails to deliver to the | ||
purchaser all of an agricultural product grown on specified land as | ||
provided by the acreage contract. | ||
SECTION 3. Chapter 104, Agriculture Code, as added by this | ||
Act, applies only to a contract executed on or after the effective | ||
date of this Act. A contract executed before the effective date of | ||
this Act is governed by the law in effect when the contract was | ||
executed, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 4. This Act takes effect September 1, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 338 was passed by the House on May 4, | ||
2017, by the following vote: Yeas 139, Nays 3, 3 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 338 was passed by the Senate on May | ||
24, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |