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.