BILL ANALYSIS C.S.H.B. 940 By: Hartnett 03-27-95 Committee Report (Substituted) BACKGROUND Texas law assesses quadruple damages against county clerks, district clerks, and precinct officers who overcharge or wrongfully charge for any public service. This penalty was created at a time when officials were paid a percentage of the fees they collected, and was intended to deter officials from abusing their position. This drastic penalty has been assessed regardless of whether the official's error was intentional or accidental. It is unfair today, however, to drastically penalize low-paid and overworked clerical staff for inadvertent overcharges, especially when they now derive no personal benefit from the overcharge. The appropriate remedy for an accidental overcharge should be a refund of the overcharge. PURPOSE This bill eliminates the quadruple penalty against county clerks, district clerks, and precinct officers who accidentally overcharge or mistakenly charge for their services. Deliberate overcharges will continue to incur the quadruple penalty. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 118.801, Local Government Code. (a) Makes the quadruple penalty for an official's overcharging a fee apply only to the official's acts made in bad faith. (b) Makes an official who in good faith overcharges a fee liable only for the amount overcharged. (c) Provides that charges authorized by the legislature but later determined unlawful are considered to be in good faith. (d) Defines "bad faith" to include a demand made with knowledge that a fee is not authorized by law. SECTION 2. Effective date: September 1, 1995. Applies only to a fee demanded and received after that date. SECTION 3. EMERGENCY CLAUSE. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute changes the phrasing of "intentional" acts to acts made "in bad faith" and changes the phrasing of "inadvertent or negligent" acts to acts made "in good faith". The committee substitute also adds that charges authorized by the legislature which are later determined unlawful are considered to be in good faith. The committee substitute defines what is included in "bad faith". The committee substitute sets forth an effective date of September 1, 1995. SUMMARY OF COMMITTEE ACTION HB 940 was considered by the County Affairs Committee in a public hearing on 3/29/95. Representative Hartnett opened. The County Affairs committee considered a complete committee substitute for HB 940. The substitute was adopted without objection. Craig Pardue, representing Dallas County, testified for HB 940, as substituted. Representative Hartnett closed. HB 940 was reported favorably, as substituted, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars by the record vote of 8 ayes, 0 nays, 0 pnv, 1 absent.