BILL ANALYSIS


                                                     C.S.H.B. 576
                                              By: Pitts (Shapiro)
                                                 Criminal Justice
                                                         05-22-95
                            Senate Committee Report (Substituted)
BACKGROUND

Currently, the ability to collect on insufficient funds checks on
two-party checks is hindered by the vague language of the law.

PURPOSE

As proposed, C.S.H.B. 576 increases the penalties for theft by
check, issuance of bad checks, and facilitates the collection of
processing fees for dishonored checks.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 31.06(a), Penal Code, to provide that if
the actor obtained property or secured performance of service by
issuing or passing a check or similar sight order for the payment
of money, when the issuer did not have sufficient funds in or on
deposit with the bank or other drawee for the payment in full of
the check or order as well as all other checks or orders then
outstanding, it is prima facie evidence of the person's intent to
deprive the owner of property under Section 31.03 including a
drawee or third-party holder in due course who negotiated the check
or to avoid payment for service under Section 31.04 under certain
circumstances.

SECTION 2. Amends Section 32.41(c), Penal Code, to authorize
notices for the purpose of Subsection (b)(2) to be sent by first
class mail if the letter was returned unopened with markings
indicating that the address is incorrect and that there is no
current forwarding order.

SECTION 3. Amends Chapter 153E, Tax Code, by adding Section
153.409, as follows:

     Sec. 153.409.  ISSUANCE OF BAD CHECK TO PERMITTED DISTRIBUTOR
     OR PERMITTED SUPPLIER.  (a)  Sets forth the actions of a
     person which constitute commission of an offense.
     
     (b)  Provides that Sections 32.41(b)-(e), and (g), Penal
       Code, apply to an offense under this section in the same
       manner as those provisions are applicable to the offense
       under Section 32.41(a), Penal Code.
       
       (c)  Provides that an offense under this section is a Class
       C misdemeanor.
       
       (d)  Authorizes a person who makes payment on an obligation
       or debt that includes a tax under this chapter and pays with
       an insufficient funds check issued to a permitted
       distributor or permitted supplier to be held liable for a
       penalty equal to the total amount of tax not paid to the
       permitted distributor or permitted supplier.
       
SECTION 4. Makes application of this Act prospective.

SECTION 5. Effective date: September 1, 1995.

SECTION 6. Emergency clause.