1-1  By:  Delisi (Senate Sponsor - Montford)                 H.B. No. 73
    1-2        (In the Senate - Received from the House April 18, 1995;
    1-3  April 19, 1995, read first time and referred to Committee on
    1-4  Economic Development; May 16, 1995, reported favorably, as amended,
    1-5  by the following vote:  Yeas 8, Nays 0; May 16, 1995, sent to
    1-6  printer.)
    1-7  COMMITTEE AMENDMENT NO. 1                               By:  Rosson
    1-8  Amend HB 73 by striking the words, "or has reason to know" from
    1-9  lines 9 and 10 of page 1.  Lines 7 through 10 of page 1 to read as
   1-10  follows:
   1-11  Sec. 9.412.  FRAUDULENT FILING.  (a)  A person may not
   1-12  intentionally or knowingly present for filing or cause to be
   1-13  presented for filing a financing statement if the person knows that
   1-14  the financing statement:
   1-15                         A BILL TO BE ENTITLED
   1-16                                AN ACT
   1-17  relating to the fraudulent filing of a financing statement;
   1-18  providing a penalty.
   1-19        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-20        SECTION 1.  Subchapter D, Chapter 9, Business & Commerce
   1-21  Code, is amended by adding Section 9.412 to read as follows:
   1-22        Sec. 9.412.  FRAUDULENT FILING.  (a)  A person may not
   1-23  intentionally or knowingly present for filing or cause to be
   1-24  presented for filing a financing statement if the person knows or
   1-25  has reason to know that the financing statement:
   1-26              (1)  is forged;
   1-27              (2)  contains a material false statement; or
   1-28              (3)  is groundless.
   1-29        (b)  A person who violates Subsection (a) is liable to the
   1-30  owner of property covered by the financing statement for:
   1-31              (1)  the greater of $5,000 or the owner's actual
   1-32  damages;
   1-33              (2)  court costs; and
   1-34              (3)  reasonable attorney's fees.
   1-35        (c)  A person who violates Subsection (a) commits an offense
   1-36  under Section 37.10, Penal Code.
   1-37        (d)  An owner of property covered by a fraudulent financing
   1-38  statement described in Subsection (a) shall have the following
   1-39  additional remedies:
   1-40              (1)  An owner may file suit in a court of suitable
   1-41  jurisdiction, requesting specific relief including, but not limited
   1-42  to, release of such fraudulent financing statement.  A successful
   1-43  plaintiff shall be entitled to reasonable attorney's fees and costs
   1-44  of court to be assessed against the person who filed the fraudulent
   1-45  financing statement.  In the event the person who filed the
   1-46  fraudulent financing statement cannot be located or is a fictitious
   1-47  person, then the owner of the property may serve the known or
   1-48  unknown defendant through publication in a newspaper of general
   1-49  circulation in the county wherein the suit is brought.
   1-50        SECTION 2.  This Act takes effect September 1, 1995.
   1-51        SECTION 3.  The importance of this legislation and the
   1-52  crowded condition of the calendars in both houses create an
   1-53  emergency and an imperative public necessity that the
   1-54  constitutional rule requiring bills to be read on three several
   1-55  days in each house be suspended, and this rule is hereby suspended.
   1-56                               * * * * *