SRC-AMY H.B. 276 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 276
78R2328 ATP-DBy: Goodman (Brimer)
Business & Commerce
5/2/2003
Engrossed


DIGEST AND PURPOSE 

Currently, Texas law specifies that a transfer of assets made or an
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 is no provision in current law that allows a creditor
relief from associated costs in locating and collecting the fraudulently
transferred assets.  H.B. 276 authorizes a court to award reasonable costs
and attorney's fees incurred relating to the recovery of fraudulently
transferred assets. 

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 Chapter 24, Business & Commerce Code, by adding Section
24.013 as follows:  

Sec. 24.013.  COSTS.  Authorizes the court, in any proceeding under this
chapter, to award costs and reasonable attorney's fees as are equitable
and just. 

SECTION 2.  Effective date:  September 1, 2003.