1-1     By:  Kamel, et al. (Senate Sponsor - Ogden)           H.B. No. 1128

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on

 1-4     Jurisprudence; May 13, 1997, reported favorably by the following

 1-5     vote:  Yeas 7, Nays 0; May 13, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the harvesting of and payment for timber; providing for

 1-9     damages; creating an offense.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Chapter 151, Natural Resources Code, is amended

1-12     by adding Subchapters C and D to read as follows:

1-13              SUBCHAPTER C.  UNAUTHORIZED HARVESTING OF TIMBER

1-14           Sec. 151.101.  DAMAGES FOR UNAUTHORIZED HARVESTING.  (a)  A

1-15     person who harvests standing timber with knowledge that the

1-16     harvesting is without the permission of the owner of the standing

1-17     timber and a person who causes another person to harvest standing

1-18     timber without the permission of the owner of the standing timber

1-19     are jointly and severally liable to the owner for damages in an

1-20     amount equal to three times the market price of the timber

1-21     harvested without permission.

1-22           (b)  Payment of damages by a person under this section does

1-23     not preclude a prosecution of the person under Section 151.045.

1-24           (c)  This section does not apply to the trimming or clearing

1-25     of trees in the vicinity of a utility line or right-of-way.

1-26                 SUBCHAPTER D.  PAYMENT FOR TIMBER PURCHASED

1-27           Sec. 151.151.  DEFINITION.  In this subchapter, "timber

1-28     purchaser" means a person who purchases standing timber for

1-29     harvest.

1-30           Sec. 151.152.  MONEY COLLECTED FOR TIMBER AS TRUST MONEY.

1-31     Money a timber purchaser collects for harvested timber is trust

1-32     money.

1-33           Sec. 151.153.  TIMBER PURCHASER AS TRUSTEE.  A timber

1-34     purchaser and each officer, director, partner, or agent of a timber

1-35     purchaser are trustees of trust money.

1-36           Sec. 151.154.  BENEFICIARY OF TRUST.  Each seller of standing

1-37     timber is a beneficiary of trust money to the extent of the

1-38     beneficiary's share of the purchase price for the timber.

1-39           Sec. 151.155.  OFFENSE.  (a)  A trustee commits an offense if

1-40     the trustee, knowingly or with intent to defraud, directly or

1-41     indirectly retains, uses, disperses, or otherwise diverts more than

1-42     $500 of trust money without first fully paying all of the

1-43     beneficiaries the purchase price for the timber.

1-44           (b)  A trustee acts with intent to defraud if the trustee

1-45     retains, uses, disperses, or diverts trust money with the intent to

1-46     deprive a beneficiary of trust money.

1-47           (c)  A trustee is presumed to have acted with intent to

1-48     defraud if the trustee does not pay all of the beneficiaries the

1-49     purchase price for the timber not later than the 45th day after the

1-50     date the trustee collects money for the timber.

1-51           (d)  An offense under this section is a state jail felony.

1-52           Sec. 151.156.  DEFENSES TO PROSECUTION.  It is an affirmative

1-53     defense to prosecution under this section that:

1-54                 (1)  the trustee paid the beneficiaries all trust money

1-55     to which the beneficiaries were entitled not later than the 15th

1-56     day after the date written notice was given to the trustee at the

1-57     trustee's most recent address known that a criminal complaint has

1-58     been filed against the trustee or that a criminal investigation of

1-59     the trustee is pending; or

1-60                 (2)  two or more persons claim to be beneficiaries of

1-61     the same trust money, and the trustee has deposited the amount of

1-62     the disputed trust money into the registry of the district court of

1-63     the county in which the standing timber was located by action in

1-64     interpleader or other appropriate legal proceeding for the benefit

 2-1     of persons the district court determines to be entitled to the

 2-2     trust money.

 2-3           Sec. 151.157.  ELECTION OF OFFENSES.  If conduct constituting

 2-4     an offense under Section 151.155 is an offense under another law of

 2-5     this state, the state may elect the offense for which it prosecutes

 2-6     the trustee.

 2-7           SECTION 2.  This Act takes effect September 1, 1997.

 2-8           SECTION 3.  The importance of this legislation and the

 2-9     crowded condition of the calendars in both houses create an

2-10     emergency and an imperative public necessity that the

2-11     constitutional rule requiring bills to be read on three several

2-12     days in each house be suspended, and this rule is hereby suspended.

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