By Pitts                                               H.B. No. 576
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to theft by check, issuance of bad checks, and collection
    1-3  of processing fees for dishonored checks; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 31.06(a), Penal Code, is amended to read
    1-6  as follows:
    1-7        (a)  If the actor obtained property or secured performance of
    1-8  service by issuing or passing a check or similar sight order for
    1-9  the payment of money, when the issuer did not have sufficient funds
   1-10  in or on deposit with the bank or other drawee for the payment in
   1-11  full of the check or order as well as all other checks or orders
   1-12  then outstanding, it is prima facie evidence of his intent to
   1-13  deprive the owner of property under Section 31.03 (Theft) including
   1-14  a drawee or third-party holder in due course who negotiated the
   1-15  check or to avoid payment for service under Section 31.04 (Theft of
   1-16  Service) <is presumed> (except in the case of a postdated check or
   1-17  order) if:
   1-18              (1)  he had no account with the bank or other drawee at
   1-19  the time he issued the check or order; or
   1-20              (2)  payment was refused by the bank or other drawee
   1-21  for lack of funds or insufficient funds, on presentation within 30
   1-22  days after issue, and the issuer failed to pay the holder in full
   1-23  within 10 days after receiving notice of that refusal.
   1-24        SECTION 2.  Section 31.06, Penal Code, is amended by adding
    2-1  Subsection (f) to read as follows:
    2-2        (f)  It is expressly intended herein for the drawee, or for a
    2-3  third-party holder in due course of a check or order, payment of
    2-4  which is refused by the drawee, to have the right to initiate and
    2-5  maintain the prosecution of the criminal charges against the maker
    2-6  of the check or order, whether or not the original payee consents
    2-7  to the action.
    2-8        SECTION 3.  Section 32.41(d), Penal Code, is amended to read
    2-9  as follows:
   2-10        (d)  If notice is given in accordance with Subsection (c), it
   2-11  is presumed that the notice was received no later than five days
   2-12  after it was sent.  Notice for purposes of Subsection (b)(2) is
   2-13  presumed to be received if the notice was:
   2-14              (1)  sent by first class mail showing the notation,
   2-15  "Forwarding and Address Correction Requested";
   2-16              (2)  addressed to the issuer as provided by Subsection
   2-17  (c); and
   2-18              (3)  returned unopened to the sender by a post office
   2-19  with markings  indicating that the address is incorrect or that a
   2-20  forwarding order has expired.
   2-21        SECTION 4.  Subchapter E, Chapter 153, Tax Code, is amended
   2-22  by adding Section 153.409 to read as follows:
   2-23        Sec. 153.409.  ISSUANCE OF BAD CHECK TO PERMITTED DISTRIBUTOR
   2-24  OR PERMITTED SUPPLIER.  (a)  A person commits an offense if:
   2-25              (1)  the person issues or passes a check or similar
   2-26  sight order for the payment of money knowing that the issuer does
   2-27  not have sufficient funds in or on deposit with the bank or other
    3-1  drawee for the payment in full of the check or order as well as all
    3-2  other checks or orders outstanding at the time of issuance;
    3-3              (2)  the payee on the check or order is a permitted
    3-4  distributor or permitted supplier; and
    3-5              (3)  the payment is for an obligation or debt that
    3-6  includes a tax under this chapter to be collected by the permitted
    3-7  distributor or permitted supplier.
    3-8        (b)  Sections 32.41(b), (c), (d), (e), and (g), Penal Code,
    3-9  apply to an offense under this section in the same manner as those
   3-10  provisions are applicable to the offense under Section 32.41(a),
   3-11  Penal Code.
   3-12        (c)  An offense under this section is a Class A misdemeanor.
   3-13        (d)  A person who makes payment on an obligation or debt that
   3-14  includes a tax under this chapter and pays with an insufficient
   3-15  funds check issued to a permitted distributor or permitted supplier
   3-16  may be held liable for a penalty equal to the total amount of tax
   3-17  not paid to the permitted distributor or permitted supplier.
   3-18        SECTION 5.  Article 102.007(e), Code of Criminal Procedure,
   3-19  is amended to read as follows:
   3-20        (e)  In addition to the collection fee specified in
   3-21  Subsection (c) of this article, the county attorney, district
   3-22  attorney, or criminal district attorney shall <may> collect the fee
   3-23  authorized by Article 9022, Vernon's Texas Civil Statutes, for the
   3-24  benefit of the holder of a check or its assignee, agent,
   3-25  representative, or any other person retained by the holder to seek
   3-26  collection of the check.
   3-27        SECTION 6.  Article 102.0071, Code of Criminal Procedure, is
    4-1  amended to read as follows:
    4-2        Art. 102.0071.  JUSTICE COURT DISHONORED CHECK.  On
    4-3  conviction in justice court of an offense under Section 32.41,
    4-4  Penal Code, or an offense under Section 31.03 or 31.04, Penal Code,
    4-5  in which it is shown that the defendant committed the offense by
    4-6  issuing or passing a check that was subsequently dishonored, the
    4-7  court shall <may> collect from the defendant and pay to the holder
    4-8  of the check the fee permitted by Article 9022, Vernon's Texas
    4-9  Civil Statutes.
   4-10        SECTION 7.  (a)  The change in law made by this Act applies
   4-11  only to an offense committed on or after the effective date of this
   4-12  Act.  For purposes of this section, an offense is committed before
   4-13  the effective date of this Act if any element of the offense occurs
   4-14  before that date.
   4-15        (b)  An offense committed before the effective date of this
   4-16  Act is covered by the law in effect when the offense was committed,
   4-17  and the former law is continued in effect for that purpose.
   4-18        SECTION 8.  This Act takes effect September 1, 1995.
   4-19        SECTION 9.  The importance of this legislation and the
   4-20  crowded condition of the calendars in both houses create an
   4-21  emergency and an imperative public necessity that the
   4-22  constitutional rule requiring bills to be read on three several
   4-23  days in each house be suspended, and this rule is hereby suspended.