1-1 AN ACT 1-2 relating to the harvesting of and payment for timber; providing for 1-3 damages; creating an offense. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 151, Natural Resources Code, is amended 1-6 by adding Subchapters C and D to read as follows: 1-7 SUBCHAPTER C. UNAUTHORIZED HARVESTING OF TIMBER 1-8 Sec. 151.101. DAMAGES FOR UNAUTHORIZED HARVESTING. (a) A 1-9 person who harvests standing timber with knowledge that the 1-10 harvesting is without the permission of the owner of the standing 1-11 timber and a person who causes another person to harvest standing 1-12 timber without the permission of the owner of the standing timber 1-13 are jointly and severally liable to the owner for damages in an 1-14 amount equal to three times the market price of the timber 1-15 harvested without permission. 1-16 (b) Payment of damages by a person under this section does 1-17 not preclude a prosecution of the person under Section 151.045. 1-18 (c) This section does not apply to the trimming or clearing 1-19 of trees in the vicinity of a utility line or right-of-way. 1-20 SUBCHAPTER D. PAYMENT FOR TIMBER PURCHASED 1-21 Sec. 151.151. DEFINITION. In this subchapter, "timber 1-22 purchaser" means a person who purchases standing timber for 1-23 harvest. 1-24 Sec. 151.152. MONEY COLLECTED FOR TIMBER AS TRUST MONEY. 2-1 Money a timber purchaser collects for harvested timber is trust 2-2 money. 2-3 Sec. 151.153. TIMBER PURCHASER AS TRUSTEE. A timber 2-4 purchaser and each officer, director, partner, or agent of a timber 2-5 purchaser are trustees of trust money. 2-6 Sec. 151.154. BENEFICIARY OF TRUST. Each seller of standing 2-7 timber is a beneficiary of trust money to the extent of the 2-8 beneficiary's share of the purchase price for the timber. 2-9 Sec. 151.155. OFFENSE. (a) A trustee commits an offense if 2-10 the trustee, knowingly or with intent to defraud, directly or 2-11 indirectly retains, uses, disperses, or otherwise diverts more than 2-12 $500 of trust money without first fully paying all of the 2-13 beneficiaries the purchase price for the timber. 2-14 (b) A trustee acts with intent to defraud if the trustee 2-15 retains, uses, disperses, or diverts trust money with the intent to 2-16 deprive a beneficiary of trust money. 2-17 (c) A trustee is presumed to have acted with intent to 2-18 defraud if the trustee does not pay all of the beneficiaries the 2-19 purchase price for the timber not later than the 45th day after the 2-20 date the trustee collects money for the timber. 2-21 (d) An offense under this section is a state jail felony. 2-22 Sec. 151.156. DEFENSES TO PROSECUTION. It is an affirmative 2-23 defense to prosecution under this section that: 2-24 (1) the trustee paid the beneficiaries all trust money 2-25 to which the beneficiaries were entitled not later than the 15th 2-26 day after the date written notice was given to the trustee at the 2-27 trustee's most recent address known that a criminal complaint has 3-1 been filed against the trustee or that a criminal investigation of 3-2 the trustee is pending; or 3-3 (2) two or more persons claim to be beneficiaries of 3-4 the same trust money, and the trustee has deposited the amount of 3-5 the disputed trust money into the registry of the district court of 3-6 the county in which the standing timber was located by action in 3-7 interpleader or other appropriate legal proceeding for the benefit 3-8 of persons the district court determines to be entitled to the 3-9 trust money. 3-10 Sec. 151.157. ELECTION OF OFFENSES. If conduct constituting 3-11 an offense under Section 151.155 is an offense under another law of 3-12 this state, the state may elect the offense for which it prosecutes 3-13 the trustee. 3-14 SECTION 2. This Act takes effect September 1, 1997. 3-15 SECTION 3. The importance of this legislation and the 3-16 crowded condition of the calendars in both houses create an 3-17 emergency and an imperative public necessity that the 3-18 constitutional rule requiring bills to be read on three several 3-19 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1128 was passed by the House on May 2, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1128 was passed by the Senate on May 19, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor