|
|
|
|
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 |