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 * * * * *