H.B. 276 78(R)    BILL ANALYSIS


H.B. 276
By: Goodman
Business & Industry
Committee Report (Unamended)



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 the current law that allow a creditor relief from associated
costs in locating and collecting the fraudulently transferred assets.  HB
276 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 this committee that this bill does not expressly
delegate any additional rulemaking authority to a state officer,
department, agency, or institution. 




ANALYSIS
HB 276 amends  the Business & Commerce Code, by authorizing 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, 2003.