BILL ANALYSIS S.B. 775 By: Nixon (Hamric) 4-19-95 Committee Report (Unamended) BACKGROUND People often write personal or business checks to the county which are returned for reasons such as insufficient funds and closed accounts. Checks issued by the counties may be lost in the mail or issued incorrectly, which requires the placement of a stop-payment of the check. Banks charge counties a fee for each of these services. The amount of the fee charged to counties varies, but in general the fees charged have increased over the last several years. PURPOSE As proposed, S.B. 775 sets forth the fees a county treasurer may charge for returned checks and stop-payment orders. 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 118.141, Local Government Code, as follows: Sec. 118.141. FEE SCHEDULE. (a) Permits the county treasurer, or another officer who receives revenue in place of the county treasurer, to collect a fee of not less than $15 or more than $30 for a returned check. (b) Permits the county treasurer, or another officer who receives revenue in place of the county treasurer, to collect a fee for a stop-payment order in an amount equal to the stop-payment fee charged to the county by the county depository bank or in an amount not to exceed $20. SECTION 2. Effective date: September 1, 1995. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION SB 775 was considered by the County Affairs Committee in a public hearing on 4/19/95. Kathy Hynson, representing herself and the County Treasurer's Association, testified for SB 775. SB 775 was reported favorably 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.