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.