HBA-CBW H.B. 3314 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3314 By: Dunnam Criminal Jurisprudence 3/25/2001 Introduced BACKGROUND AND PURPOSE Under the federal Packers and Stockyards Act, each packer, market agency, or dealer (actor) following a purchase of livestock, is required before the close of the next business day to deliver a check or wire transfer funds to the seller's account for the full amount of the purchase price of the livestock. In the event that an actor becomes delinquent, the United States Secretary of Agriculture may after notice and hearing issue an order requiring an actor to cease and desist from purchasing livestock while insolvent. With the slight delay between the sale of the livestock and the receipt of payment, many sellers may not receive payment on time or at all. House Bill 3314 provides that an actor is presumed to have deceived a commission merchant if the actor receives livestock on a good faith basis and fails to submit full payment to the commission merchant and provides that the appropriation of the livestock is unlawful. 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 House Bill 3314 amends the Penal Code to provide that an actor who obtains livestock from a commission merchant by representing that the actor will make prompt payment is presumed to have induced the commission merchant's consent by deception if the actor fails to make full payment in accordance with the federal Packers and Stockyards Act and that the appropriation of the livestock is unlawful. EFFECTIVE DATE September 1, 2001.