HBA-MPM, NRS H.B. 1051 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1051 By: Goodman Business & Industry 3/12/2001 Introduced BACKGROUND AND PURPOSE Current law specifies that a transfer of assets made or obligation incurred by a debtor to a third party is fraudulent if the debtor made the transfer or incurred the obligation to intentionally hinder, delay, or defraud a creditor. If a creditor has obtained a judgment on a claim against a debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds. However, there are no provisions in current law that allow a creditor relief from associated costs in locating and collecting the fraudulently transferred assets. House Bill 1051 authorizes a court to award reasonable costs and attorney's fees incurred relating to the recovery of fraudulently transferred assets. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1051 amends the Business & Commerce Code to authorize the court to award costs and reasonable attorney's fees as are equitable and just in any proceeding under the Uniform Fraudulent Transfer Act. EFFECTIVE DATE September 1, 2001.