HBA-CBW S.B. 1407 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1407
By: Madla
Judicial Affairs
4/19/2001
Engrossed



BACKGROUND AND PURPOSE 

Current law establishes a procedure by which the representative of an
estate may sell livestock which is part of the estate.  While this may not
be a common occurrence, such a sale does happen occasionally when no heir
is readily available to care for the livestock or when an heir does not
wish to keep the livestock.  Problems have arisen from this practice
because bonded commission merchants can not charge more than three percent
of the sale price.  Most auctions charge three and four percent and when a
representative of an estate presents the livestock for sale, auctions must
refuse to sell such livestock or be in violation of the federal Packers and
Stockyards Act, which prohibits preferential treatment of one producer over
another. As a result, the auction can not make a sale, and the
representative of the estate is unable to sell the livestock to benefit the
estate.  Senate Bill 1407 requires a bonded livestock commission merchant
or a bonded livestock auction commission merchant to be paid the merchant's
usual and customary charges. 

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

Senate Bill 1407 amends the Texas Probate Code to require a bonded
livestock commission merchant or a bonded livestock auction commission to
be paid the commission merchant's usual and customary charges, rather than
to be paid the merchant's usual and customary charges not to exceed three
percent of the sale price for the sale of such livestock.   

EFFECTIVE DATE

September 1, 2001.