HBA-CBW S.B. 1747 77(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 1747
By: Haywood
Criminal Jurisprudence
5/10/2001
Committee Report (Amended)



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.
Senate Bill 1747 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

Senate Bill 1747 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.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 clarifies that an actor who is presumed to have
induced a commission merchant's consent by deception is an actor who is
subject to the federal Packers and Stockyards Act.