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. 2-13 * * * * *