SRC-SEW S.B. 1747 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1747
By: Haywood
Natural Resources
6/20/2001
Enrolled


DIGEST AND PURPOSE 

Currently, the livestock marketing industry is regulated by the federal
Packers and Stockyards Act (7 U.S.C. 228b) (P&S).  However, provisions
within that Act conflict with state law regarding theft by check and leave
livestock auctions vulnerable.  While livestock during the marketing
process are not perishable in the same sense as crops, they are susceptible
to disease, loss of quality, or loss of weight if held at the selling point
or market any longer than necessary.  Therefore, P&S regulations allow the
animals to move to their ultimate destination immediately following the
sale but require "prompt payment," which is defined as "before the close of
the next business day following the purchase of the livestock and transfer
of possession thereof."  Federal rules further allow a buyer to comply with
the prompt payment requirement by mailing a check before the close of the
next business day.  Either way, the livestock auction does not receive the
check until a few days following the sale.   

Section 31.03 (Theft) of the Penal Code states that appropriation of
property is unlawful if it is without the owner's effective consent.  In
the case of the livestock auction, federal rules mandate a slight delay
between the sale of the livestock and receipt of the check.  However,
"effective consent" to release the livestock was secured by representing
that payment would be made in accordance with the federal prompt payment
requirements. 

S.B. 1747 amends the Penal Code by adding a provisions that, in the case of
livestock, an individual who represents that he will comply with federal
prompt payment requirements and fails to pay for the livestock can be
prosecuted for theft since effective consent of the livestock owner was
gotten by deceit.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 31.03, Penal Code, by amending Subsection (c)
and adding Subsection (i), as follows: 

(c) Provides that, for purposes of Subsection (b), an actor engaged in the
business of buying and selling used or secondhand personal property, or
lending money on the security of personal property deposited with the actor
(rather than him), is presumed to know upon receipt by the actor of stolen
property (other than a motor vehicle subject to Chapter 501, Transportation
Code) that the property has been previously stolen from another if certain
requirements are met.  Provides that, for purposes of Subsection (b), an
actor who is subject to Section 409, Packers and Stockyards Act (7 U.S.C.
Section 228b), that obtains livestock from a commission merchant by
representing that the actor will make prompt payment is presumed to have
induced the commission merchant's consent by deception if the actor fails
to make full payment in accordance with Section 409, Packers and Stockyards
Act, 1921 (7 U.S.C. Section 228b). 
 
(i) Defines, "livestock" and "commission merchant" for purposes of
Subsection (c)(9). 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date:  September 1, 2001.