BILL ANALYSIS



C.S.H.B. 576
By: Pitts
3-13-95
Committee Report (Substituted)


BACKGROUND

Retailers and businesses face difficulty in collecting on
insufficient checks due to the fact that the law is vague regarding
who can press charges on two-party checks.

PURPOSE

If enacted, H.B. 576 would facilitate the recovery of funds for
those who experience financial loss due to the passing of
insufficient checks.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state department, officer,
institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 31.06, Penal Code, by amending
Subsection (a) as follows:

     (a) Adds language of "prima facie evidence" of intent to
     commit theft by check.  Subsection (a) also expands the
     definition of "owner of property" to include the "drawee or
     third party holder in due course who negotiated the check."
     for the check.

SECTION 2.

     (a) Makes application of this Act prospective.

     (b) Change in law applies only to offenses committed on or
     after the effective date of this Act.

SECTION 3.  Effective date:  September 1, 1995.

SECTION 4.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

As introduced, H.B. 576 amended Section 31.06, Penal Code, by
adding Subsection (f) that expanded the definition of "owner of
property" to include the holder of the dishonored check who
exchanged goods, money, or services for the check.  The committee
substitute does not add Subsection (f).  As substituted, H.B. 576
amends Subsection (a), Section 31.06, Penal Code, by including
language of "prima facie evidence" of intent to commit theft. 
Subsection (a) also expands the definition of "owner of property"
to include a drawee or third party holder in due course who
negotiated the check.

SUMMARY OF COMMITTEE ACTION

H.B. 576 was considered in a public hearing on February 27, 1995. 
The following persons testified in favor of the bill:

     Raymond C. Hemmig, representing the Texas Association of Check
     Cashers;
     W. R. Bill Lyon, representing himself; and
     Michael W. Stucker, representing the Texas Association of
     Check Cashers.

H.B. 576 was left pending in Committee.  H.B. 576 was considered in
a public hearing on March 13, 1995.  At that hearing a complete
committee substitute was offered by Rep. Pitts.  The substitute for
H.B. 576 was adopted.  H.B. 576 was reported favorably, as
substituted, with the recommendation that it do pass and be
printed, by a record vote of 9 ayes, 0 nays, 0 pnv, and 0 absent.