HBA-KDB C.S.H.B. 2246 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2246 By: Ellis, Dan Agriculture & Livestock 4/12/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Investigating the crime of timber theft is challenging for law enforcement officials because of the potentially outdated language regarding timber harvesting. A paper trail of ownership of timber may ease the burden of investigating this crime. C.S.H.B. 2246 requires landowners and sellers to provide a bill of sale each time timber changes ownership and establishes penalties. 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 C.S.H.B. 2246 amends the Natural Resources Code to delete provisions relating to branding and floating timber, and modifies and updates provisions relating to the bill of sale for purchase of trees and timber. The bill requires the bill of sale, which may be filed of record in the appropriate real property records, to include representations and a warranty from the seller, the name of the owner of the land from which the trees, timber, logs, pulpwood, or in-woods chips (wood products) were or are to be obtained, and the name of the county in which the wood products were or are to be obtained. The bill authorizes and entitles the purchaser of the wood products conveyed in the bill of sale to rely on the information required to be provided by the seller to be incorporated into the bill of sale, as well as on the representations and warranty of the seller (Sec. 151.002). The bill requires the person that purchases the wood products to retain the bill of sale for not less than two years following the later of the date of execution of the bill of sale or the expiration date referenced in the bill of sale (Sec. 151.003). The bill requires a wood yard, transfer yard, mill site, or storage yard, at specified points of delivery, to post written notice concerning the sale or purchase of trees or timber (Sec. 151.004). The bill provides that a seller or purchaser who knowingly fails to provide, obtain, or retain a bill of sale is subject to a fine of not more than $500 for each offense. The bill provides that a wood yard, transfer yard, mill site, or storage yard that knowingly fails to post the notice concerning the sale of trees or timber is guilty of a misdemeanor and on conviction is subject to a fine of not more than $500 for each offense (Sec. 151.005).The bill sets forth provisions regarding cumulative penalties and civil liability (Secs. 151.007 and 151.008). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2246 modifies the original bill by requiring a seller, rather than a person, to provide and a purchaser to require a bill of sale for trees, timber, logs, pulpwood, or in-woods chips (wood products) (Sec. 151.001). The substitute specifies that the bill of sale may be filed of record in the appropriate real property records. The substitute modifies the original bill by requiring the bill of sale to include representations from a seller and the name of the county from which the wood products were or are to be obtained. The substitute removes from the bill of sale the requirement for the address of the owner of the land from which the wood products were or are to be obtained. The substitute authorizes and entitles the purchaser of the wood products to rely on the information required to be provided by the seller to be incorporated into the bill of sale, as well as on the representations and warranty of the seller (Sec. 151.002). The substitute modifies the notice concerning the sale or purchase of trees or timber (notice) in the original bill by providing that a person, firm, partnership, or corporation adjudged guilty of theft in connection with the sale or purchase of trees or timber will be punished as provided by the Penal Code, rather than by up to life in prison and a fine not to exceed $10,000. The substitute modifies the notice by providing that a person, firm, partnership, or corporation adjudged guilty of fraud in connection with the sale or purchase of trees or timber will be punished as provided by the Penal Code, rather than may be punished by up to two years of confinement in state jail and a fine not to exceed $10,000 (Sec 151.004). The substitute provides that the Act does not apply to trees from a nursery or trees, logs, or pulpwood with a commercial value of less than $250, in addition to finished wood products and logs or pulpwood from a wood yard, transfer yard, mill site, or storage yard (Sec. 151.006). The substitute modifies provisions relating to civil liability (Sec. 151.008).