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


Office of House Bill AnalysisC.S.S.B. 1407
By: Madla
Judicial Affairs
4/26/2001
Committee Report (Substituted)



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.  C.S.S.B. 1407 requires a bonded livestock commission merchant or a
bonded livestock auction commission merchant to be paid the merchant's
usual and customary charges, not to exceed five percent of the sale price,
for the sale of such livestock. 

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

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1407 modifies the original bill by requiring a bonded livestock
commission merchant or a bonded livestock auction commission merchant to be
paid the commission merchant's usual and customary charges, not to exceed
five percent, rather than to be paid the usual and customary charges for
the sale of such livestock.