BWH H.B. 2185 75(R)BILL ANALYSIS COUNTY AFFAIRS H.B. 2185 By: Goolsby 4-2-97 Committee Report (Unamended) BACKGROUND Law currently requires county treasurers in Texas to provide the public with information regarding checks and warrants issued by the county. However, certain individuals or firms have taken advantage of this situation. These individuals will request the names of people who have not claimed county checks and warrants issued to them, notify these people of these documents and subsequently charge them a considerable fee that is generally up to 50% of the face value of the check. In addition, counties expend time and finances in preparing these lists and are unable to charge a reasonable research fee for the labor they expend. PURPOSE This legislation would limit the fee charged by persons attempting to recover county checks and warrants for another person, and provide counties with a reasonable compensation for processing the checks and warrants. 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. Subchapter E, Chapter 116, Local Government Code is amended by adding a new Section 116.120 as follows: 1) Subsection (a) provides that this section applies only to warrants and checks issued by the county that have not been offered for payment; 2) Subsection (b) establishes a fee of not more that 10 percent of the face value of a county warrant or check charged by a person attempting to recover funds on behalf of another person; 3) Subsection (c) establishes a fee of one percent of the face value to be charged by the county to any person, recovering funds from the county, when an new check or warrant is issued; and 4) Subsection (d) establishes a fee that counties may charge for the research of valid claims for county checks and warrants. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause.