HBA-CBW H.B. 3406 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3406 By: King, Tracy Judicial Affairs 4/4/2001 Introduced BACKGROUND AND PURPOSE Current law establishes a procedure by which the representative of an estate may sell livestock which is part of the estate. While this may not be a common occurrence, such a sale does happen occasionally when no heir is readily available to care for the livestock or when an heir does not wish to keep the livestock. Problems have arisen from this practice because bonded commission merchants can not charge more than three percent of the sale price. Most auctions charge between three and four percent and when a representative of an estate presents the livestock for sale, auctions must refuse to sell such livestock or be in violation of the federal Packers and Stockyards Act, which prohibits preferential treatment of one producer over another. As a result, the auction can not make a sale, and the representative of the estate is unable to sell the livestock to benefit the estate. House Bill 3406 requires a bonded livestock commission merchant or a bonded livestock auction commission merchant to be paid the commission merchant's usual and customary charges, rather than to be paid the commission merchant's usual and customary charges not to exceed three percent of the sale price, for the sale of livestock necessary, or to the advantage of an estate. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3406 amends the Texas Probate Code to require a bonded livestock commission merchant or a bonded livestock auction commission merchant, in selling livestock for a representative of an estate, to be paid the commission merchant's usual and customary charges, rather than to be paid the commission agent's usual and customary charges not to exceed three percent of the sale price for the sale of such livestock. EFFECTIVE DATE September 1, 2001.