Bill Text: TX SB2037 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to a study regarding the feasibility of implementing a central filing system for the filing of financing statements for security interests in farm products.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-17 - Comm. report sent to Local & Consent Calendar [SB2037 Detail]
Download: Texas-2019-SB2037-Comm_Sub.html
| By: Hall | S.B. No. 2037 | |
| (King of Hemphill) | ||
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| relating to a study regarding the feasibility of implementing a | ||
| central filing system for the filing of financing statements for | ||
| security interests in farm products. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. DEFINITIONS. In this Act: | ||
| (1) "Security interest" has the meaning assigned by | ||
| Section 1.201, Business & Commerce Code. | ||
| (2) "Buyer" means a person who, in the ordinary course | ||
| of business, buys farm products from another person who is engaged | ||
| in farming operations and who is in the business of selling farm | ||
| products. | ||
| (3) "Commission merchant" means a person engaged in | ||
| the business of receiving a farm product for the purpose of selling | ||
| the farm product on commission or on behalf of another person. | ||
| (4) "Farm products" has the meaning assigned by | ||
| Section 9.102, Business & Commerce Code. | ||
| (5) "Financing statement" has the meaning assigned by | ||
| Section 9.102, Business & Commerce Code. | ||
| (6) "Selling agent" means a person, other than a | ||
| commission merchant, who is engaged in the business of negotiating | ||
| the sale or purchase of a farm product on behalf of a person engaged | ||
| in farming operations. | ||
| SECTION 2. FEASIBILITY STUDY ON CENTRAL FILING SYSTEM. | ||
| (a) The secretary of state shall conduct a study on the | ||
| feasibility of developing and implementing a central filing system | ||
| to be used for the filing of all financing statements that cover | ||
| farm products being sold and purchased in this state that are | ||
| subject to a security interest. | ||
| (b) The study conducted under this section must evaluate | ||
| proposals for a central filing system that allows: | ||
| (1) a secured party to file a financing statement in | ||
| the system that covers farm products; and | ||
| (2) a buyer, commission merchant, selling agent, or | ||
| other person to search the system to determine whether the farm | ||
| product is subject to a security interest based on the information | ||
| contained in a financing statement that is filed in the system. | ||
| SECTION 3. REPORT. Not later than January 12, 2021, the | ||
| secretary of state shall report the results of the study and any | ||
| recommendations to the legislature. The report must include any | ||
| proposed legislation necessary to implement the recommendations | ||
| made in the report. | ||
| SECTION 4. EXPIRATION. This Act expires June 1, 2021. | ||
| SECTION 5. EFFECTIVE DATE. This Act takes effect September | ||
| 1, 2019. | ||
