1-1  By:  Pitts (Senate Sponsor - Shapiro)                  H.B. No. 576
    1-2        (In the Senate - Received from the House April 24, 1995;
    1-3  April 25, 1995, read first time and referred to Committee on
    1-4  Criminal Justice; May 22, 1995, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 4, Nays 0;
    1-6  May 22, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR H.B. No. 576                  By:  Shapiro
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to theft by check, issuance of bad checks, and collection
   1-11  of processing fees for dishonored checks; providing penalties.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Section 31.06(a), Penal Code, is amended to read
   1-14  as follows:
   1-15        (a)  If the actor obtained property or secured performance of
   1-16  service by issuing or passing a check or similar sight order for
   1-17  the payment of money, when the issuer did not have sufficient funds
   1-18  in or on deposit with the bank or other drawee for the payment in
   1-19  full of the check or order as well as all other checks or orders
   1-20  then outstanding, it is prima facie evidence of his intent to
   1-21  deprive the owner of property under Section 31.03 (Theft) including
   1-22  a drawee or third-party holder in due course who negotiated the
   1-23  check or to avoid payment for service under Section 31.04 (Theft of
   1-24  Service) <is presumed> (except in the case of a postdated check or
   1-25  order) if:
   1-26              (1)  he had no account with the bank or other drawee at
   1-27  the time he issued the check or order; or
   1-28              (2)  payment was refused by the bank or other drawee
   1-29  for lack of funds or insufficient funds, on presentation within 30
   1-30  days after issue, and the issuer failed to pay the holder in full
   1-31  within 10 days after receiving notice of that refusal.
   1-32        SECTION 2.  Section 32.41(c), Penal Code, is amended to read
   1-33  as follows:
   1-34        (c)  Notice for purposes of Subsection (b)(2) may be notice
   1-35  in writing, sent by registered or certified mail with return
   1-36  receipt requested, <or> by telegram with report of delivery
   1-37  requested, or by first class mail if the letter was returned
   1-38  unopened with markings indicating that the address is incorrect and
   1-39  that there is no current forwarding order, and addressed to the
   1-40  issuer at his address shown on:
   1-41              (1)  the check or order;
   1-42              (2)  the records of the bank or other drawee; or
   1-43              (3)  the records of the person to whom the check or
   1-44  order has been issued or passed.
   1-45        SECTION 3.  Subchapter E, Chapter 153, Tax Code, is amended
   1-46  by adding Section 153.409 to read as follows:
   1-47        Sec. 153.409.  ISSUANCE OF BAD CHECK TO PERMITTED DISTRIBUTOR
   1-48  OR PERMITTED SUPPLIER.  (a)  A person commits an offense if:
   1-49              (1)  the person issues or passes a check or similar
   1-50  sight order for the payment of money knowing that the issuer does
   1-51  not have sufficient funds in or on deposit with the bank or other
   1-52  drawee for the payment in full of the check or order as well as all
   1-53  other checks or orders outstanding at the time of issuance;
   1-54              (2)  the payee on the check or order is a permitted
   1-55  distributor or permitted supplier; and
   1-56              (3)  the payment is for an obligation or debt that
   1-57  includes a tax under this chapter to be collected by the permitted
   1-58  distributor or permitted supplier.
   1-59        (b)  Sections 32.41(b), (c), (d), (e), and (g), Penal Code,
   1-60  apply to an offense under this section in the same manner as those
   1-61  provisions are applicable to the offense under Section 32.41(a),
   1-62  Penal Code.
   1-63        (c)  An offense under this section is a Class C misdemeanor.
   1-64        (d)  A person who makes payment on an  obligation or debt
   1-65  that includes a tax under this chapter and pays with an
   1-66  insufficient funds check issued to a permitted distributor or
   1-67  permitted supplier may be held liable for a penalty equal to the
   1-68  total amount or tax not paid to the permitted distributor or
    2-1  permitted supplier.
    2-2        SECTION 4.  (a)  The change in law made by this Act applies
    2-3  only to an offense committed on or after the effective date of this
    2-4  Act.  For purposes of this section, an offense is committed before
    2-5  the effective date of this Act if any element of the offense occurs
    2-6  before that date.
    2-7        (b)  An offense committed before the effective date of this
    2-8  Act is covered by the law in effect when the offense was committed,
    2-9  and the former law is continued in effect for that purpose.
   2-10        SECTION 5.  This Act takes effect September 1, 1995.
   2-11        SECTION 6.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended.
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