H.B. No. 338
 
 
 
 
AN ACT
  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