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.