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.