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.