By Ellis                                              H.B. No. 2246
         77R4431 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of the purchase and sale of timber;
 1-3     providing a penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 151, Natural Resources Code, is amended to
 1-6     read as follows:
 1-7                CHAPTER 151.  PROVISIONS GENERALLY APPLICABLE
 1-8                SUBCHAPTER A.  [BRANDING AND FLOATING TIMBER]
 1-9           [Sec. 151.001.  DEFINITIONS. In this subchapter:]
1-10                 [(1)  "Lumber" means lumber attached or bound together
1-11     in some way for floating, but does not include loose lumber.]
1-12                 [(2)  "Shingles" means shingles in bunches or bundles,
1-13     but does not include loose shingles.]
1-14           [Sec. 151.002.  TIMBER TO BE BRANDED. A person engaged in
1-15     floating or rafting timber on the water of a river or creek of this
1-16     state shall have a log brand and shall brand distinctly each log or
1-17     stick which he floats or hauls and puts in the water for sale or
1-18     market.]
1-19           [Sec. 151.003.  RECORDING BRAND. (a)  A person engaged in
1-20     floating or rafting timber on the water of a river or creek of this
1-21     state shall have his log brand recorded by the county clerk in:]
1-22                 [(1)  each county in which he cuts timber; and]
1-23                 [(2)  the county in which he proposes to sell or market
1-24     the timber.]
 2-1           [(b)  The brand shall be recorded in a book kept by the
 2-2     county clerk for that purpose or on microfilm as permitted in
 2-3     Chapter 194, Local Government Code.]
 2-4           [(c)  The county clerk shall receive the same fee as is
 2-5     allowed by law for recording stock brands.]
 2-6           [Sec. 151.004.  FILING WRITTEN REPORT. (a)  A person who
 2-7     floats any logs or timber in this state shall make a written report
 2-8     under oath on the first day of January, April, July, and October of
 2-9     each year, or within 15 days of those dates, showing:]
2-10                 [(1)  the number of logs cut or floated during the next
2-11     preceding three months;]
2-12                 [(2)  the survey or surveys of land from which the logs
2-13     were cut or carried;]
2-14                 [(3)  the number of logs cut from each survey; and]
2-15                 [(4)  a description of the brand placed on the logs.]
2-16           [(b)  The person who floats the logs or timber shall file the
2-17     report required in Subsection (a) of this section with the county
2-18     clerk of the county in which the timber was cut.  The county clerk
2-19     shall record and index the report in a book kept for that purpose
2-20     or on microfilm as permitted in Chapter 194, Local Government Code.]
2-21           [(c)  This section of the code does not apply to pickets,
2-22     posts, rails, or firewood.]
2-23           [Sec. 151.005.  EVIDENCE OF OWNERSHIP. A certificate signed
2-24     by the county clerk, containing a description of a log brand and
2-25     the name of the owner of the brand, with a transfer on the back of
2-26     it, signed and acknowledged by the owner or proved as other
2-27     instruments for record, shall be prima facie evidence that the
 3-1     person to whom the transfer is made owns the logs described in the
 3-2     certificate.]
 3-3           [Sec. 151.006.  PENALTIES. (a)  A person who buys or sells
 3-4     any timber or log floating, or that has been floated, in this state
 3-5     before it is branded shall be fined not more than $10 for each
 3-6     unbranded log or piece of timber purchased, sold, or traced.]
 3-7           [(b)  A person shall be fined not more than $200 for each
 3-8     offense if he:]
 3-9                 [(1)  floats any unbranded log or timber for market;]
3-10                 [(2)  fails to make the reports required under Section
3-11     151.004 of this code;]
3-12                 [(3)  brands any log or timber of another without his
3-13     authority;]
3-14                 [(4)  defaces a brand on any log or timber except when
3-15     it is in the act of being sawed or manufactured into lumber or
3-16     other commodity for use in building; or]
3-17                 [(5)  is not an employee of the owner and without the
3-18     written consent of the owner takes into possession any branded or
3-19     unbranded log or timber cut for floating or sawing, or any sawed
3-20     timber, lumber, or shingle floating in any water of this state or
3-21     deposited on the banks of a river or stream in this state.]
3-22           [Sec. 151.007.  VENUE. The accused may be prosecuted in any
3-23     county in which the timber or lumber was deposited in the water or
3-24     in which it was unlawfully taken into possession or unlawfully
3-25     defaced, sold, purchased, or branded.]
3-26                 [SUBCHAPTER B.]  BILL OF SALE FOR PURCHASE
3-27                             OF TREES AND TIMBER
 4-1           Sec. 151.001 [151.041].  REQUIRED BILL OF SALE. Before
 4-2     purchasing or accepting delivery of any trees, [or] timber, [in the
 4-3     form of] logs, [or] pulpwood, or in-woods chips, a person[, firm,
 4-4     partnership, or corporation] shall provide or require a bill of
 4-5     sale for the trees, [or] timber, logs, pulpwood, or in-woods chips
 4-6     executed [and acknowledged] by the seller [in the manner required
 4-7     by law for registration].  The bill of sale may be a part of, a
 4-8     compilation of information taken from, or an addendum to, by way of
 4-9     example, a timber deed, scale ticket, weight ticket, cutting
4-10     contract, harvest agreement, wood purchase agreement, or other
4-11     records of the sale and purchase made at the time if all the
4-12     information required by Section 151.002 is included.
4-13           Sec. 151.002 [151.042].  INFORMATION IN BILL OF SALE. The
4-14     bill of sale, which may be filed of record, shall at a minimum
4-15     include:
4-16                 (1)  the name and address of the:
4-17                       (A)  owner of the land from which the trees,
4-18     timber, logs, pulpwood, or in-woods chips were or are to be
4-19     obtained;
4-20                       (B)  seller, if the seller is not the owner of
4-21     the land; and
4-22                       (C)  purchaser;
4-23                 (2)  a description of the survey or tract of land from
4-24     which the trees, timber, logs, [or] pulpwood, or in-woods chips
4-25     were or are to be obtained, or information from which the identity
4-26     of that tract of land may be ascertained [cut];
4-27                 (3)  a general description of the trees, timber, [the
 5-1     number of] logs, [or] pulpwood, or  in-woods chips conveyed in the
 5-2     bill of sale; and
 5-3                 (4)  a warranty from the seller that the seller is the
 5-4     lawful owner of all the trees, timber, [the markings, if any, on
 5-5     the] logs, [or] pulpwood, or in-woods chips conveyed in the bill of
 5-6     sale and that the trees, timber, logs, pulpwood, or in-woods chips
 5-7     are free and clear of all liens, security agreements, encumbrances,
 5-8     claims, demands, and charges.
 5-9           Sec. 151.003 [151.043].  RETENTION OF [EXPENSES IN CONNECTION
5-10     WITH] BILL OF SALE. A person that purchases trees, timber, logs,
5-11     pulpwood, or in-woods chips shall retain the bill of sale for not
5-12     less than two years following the later of the date of execution of
5-13     the bill of sale or the expiration date referenced in the bill of
5-14     sale [Notarial fees, filing fees, and other expenses in connection
5-15     with the bill of sale shall be assumed and paid by the purchaser].
5-16           Sec. 151.004 [151.044].  NOTICE CONCERNING SALE OR PURCHASE
5-17     OF TREES OR TIMBER [STATEMENT IN LIEU OF BILL OF SALE FOR STAVES OR
5-18     CROSSTIES]. At each designated point of delivery for trees, timber,
5-19     logs, pulpwood, or in-woods chips, a wood yard, transfer yard, mill
5-20     site, or storage yard shall post the following written notice in
5-21     lettering not less than one inch:
5-22            NOTICE CONCERNING SALE OR PURCHASE OF TREES OR TIMBER
5-23           1.  A seller or purchaser of trees, timber, logs, pulpwood,
5-24               or in-woods chips who knowingly fails to provide, obtain,
5-25               or retain a bill of sale as provided in Chapter 151,
5-26               Natural Resources Code, is guilty of a misdemeanor and on
5-27               conviction is subject to a fine of not more than $500 for
 6-1               each offense.
 6-2           2.  A person, firm, partnership, or corporation adjudged
 6-3               guilty of theft in connection with the sale or purchase
 6-4               of trees or timber will be punished by up to life in
 6-5               prison and a fine not to exceed $10,000.
 6-6           3.  A person, firm, partnership, or corporation adjudged
 6-7               guilty of fraud in connection with the sale or purchase
 6-8               of trees or timber may be punished by up to two years
 6-9               confinement in state jail and a fine not to exceed
6-10               $10,000.
6-11           4.  The Texas Forest Service Timber Theft Hotline is
6-12               1-800-364-3470 [(a)  On  or before  the 10th  day of each
6-13     succeeding month from the date of purchase, a purchaser of staves
6-14     or crossties who does not secure a bill of sale or deed to the
6-15     staves or crossties shall file a verified statement with the county
6-16     clerk of the county in which the land is located from which the
6-17     staves or crossties were cut.]
6-18           [(b)  The verified statement shall include:]
6-19                 [(1)  the name and address of the seller and purchaser;]
6-20                 [(2)  a description of the survey or tract of land from
6-21     which the staves or crossties were cut;]
6-22                 [(3)  the number of staves or crossties; and]
6-23                 [(4)  the markings, if any, on the staves or
6-24     crossties].
6-25           Sec. 151.005 [151.045].  PENALTY. (a)  A seller or purchaser
6-26     who knowingly fails to provide, obtain, or retain [see that] a bill
6-27     of sale [is given in a sale] as required by Sections 151.001,
 7-1     151.002, and 151.003 [provided for in this subchapter, or a
 7-2     purchaser who does not secure a bill of sale and fails to file the
 7-3     statement required by Section 151.044 of this code,] is guilty of a
 7-4     misdemeanor and on conviction is subject to a fine of not more than
 7-5     $500 for each offense [$100 or confinement for not more than 30
 7-6     days in the county jail, or both].
 7-7           (b)  A wood yard, transfer yard, mill site, or storage yard
 7-8     that knowingly fails to post the notice concerning sale or purchase
 7-9     of trees or timber as required by Section 151.004 is guilty of a
7-10     misdemeanor and on conviction is subject to a fine of not more than
7-11     $500 for each offense.
7-12           Sec. 151.006 [151.046].  APPLICABILITY. This [The provisions
7-13     of this] subchapter does [shall] not apply to the sale of:
7-14                 (1)  finished [lumber, cedar staves,] wood products; or
7-15                 (2)  logs or pulpwood from a wood yard, transfer yard,
7-16     mill site, or storage yard[, or posts].
7-17            SUBCHAPTER B [C].  UNAUTHORIZED HARVESTING OF TIMBER
7-18           Sec. 151.051 [151.101].  DAMAGES FOR UNAUTHORIZED HARVESTING.
7-19     (a)  A person who harvests standing timber with knowledge that the
7-20     harvesting is without the permission of the owner of the standing
7-21     timber and a person who causes another person to harvest standing
7-22     timber without the permission of the owner of the standing timber
7-23     are jointly and severally liable to the owner for damages in an
7-24     amount equal to three times the market price of the timber
7-25     harvested without permission.
7-26           (b)  Payment of damages by a person under this section does
7-27     not preclude a prosecution of the person under Section 151.005
 8-1     [151.045].
 8-2           (c)  This section does not apply to the trimming or clearing
 8-3     of trees in the vicinity of a utility line or right-of-way.
 8-4               SUBCHAPTER C [D].  PAYMENT FOR TIMBER PURCHASED
 8-5           Sec. 151.101 [151.151].  DEFINITION. In this subchapter,
 8-6     "timber purchaser" means a person who purchases standing timber for
 8-7     harvest.
 8-8           Sec. 151.102 [151.152].  MONEY COLLECTED FOR TIMBER AS TRUST
 8-9     MONEY. Money a timber purchaser collects for harvested timber is
8-10     trust money.
8-11           Sec. 151.103 [151.153].  TIMBER PURCHASER AS TRUSTEE. A
8-12     timber purchaser and each officer, director, partner, or agent of a
8-13     timber purchaser are trustees of trust money.
8-14           Sec. 151.104 [151.154].  BENEFICIARY OF TRUST. Each seller of
8-15     standing timber is a beneficiary of trust money to the extent of
8-16     the beneficiary's share of the purchase price for the timber.
8-17           Sec. 151.105 [151.155].  OFFENSE. (a)  A trustee commits an
8-18     offense if the trustee, knowingly or with intent to defraud,
8-19     directly or indirectly retains, uses, disperses, or otherwise
8-20     diverts more than $500 of trust money without first fully paying
8-21     all of the beneficiaries the purchase price for the timber.
8-22           (b)  A trustee acts with intent to defraud if the trustee
8-23     retains, uses, disperses, or diverts trust money with the intent to
8-24     deprive a beneficiary of trust money.
8-25           (c)  A trustee is presumed to have acted with intent to
8-26     defraud if the trustee does not pay all of the beneficiaries the
8-27     purchase price for the timber not later than the 45th day after the
 9-1     date the trustee collects money for the timber.
 9-2           (d)  An offense under this section is a state jail felony.
 9-3           Sec. 151.106 [151.156].  DEFENSES TO PROSECUTION. It is an
 9-4     affirmative defense to prosecution under this section that:
 9-5                 (1)  the trustee paid the beneficiaries all trust money
 9-6     to which the beneficiaries were entitled not later than the 15th
 9-7     day after the date written notice was given to the trustee at the
 9-8     trustee's most recent address known that a criminal complaint has
 9-9     been filed against the trustee or that a criminal investigation of
9-10     the trustee is pending; or
9-11                 (2)  two or more persons claim to be beneficiaries of
9-12     the same trust money, and the trustee has deposited the amount of
9-13     the disputed trust money into the registry of the district court of
9-14     the county in which the standing timber was located by action in
9-15     interpleader or other appropriate legal proceeding for the benefit
9-16     of persons the district court determines to be entitled to the
9-17     trust money.
9-18           Sec. 151.107 [151.157].  ELECTION OF OFFENSES. If conduct
9-19     constituting an offense under Section 151.105 [151.155] is an
9-20     offense under another law of this state, the state may elect the
9-21     offense for which it prosecutes the trustee.
9-22            SUBCHAPTER D.  PENALTIES CUMULATIVE; CIVIL LIABILITY
9-23           Sec. 151.151.  PENALTIES CUMULATIVE. A penalty provided by
9-24     this chapter is in addition to a penalty provided under other law.
9-25           Sec. 151.152.  CIVIL LIABILITY. Failure to comply with this
9-26     chapter does not create civil liability for actual or exemplary
9-27     damages.
 10-1          SECTION 2.  This Act takes effect September 1, 2001.