By Goolsby                                      H.B. No. 2185

      75R7752 CAG-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the collection of certain warrants or checks issued by

 1-3     a county treasurer.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter E, Chapter 116, Local Government Code,

 1-6     is amended by adding Section 116.120 to read as follows:

 1-7           Sec. 116.120.  COLLECTION OF CERTAIN OVERDUE COUNTY WARRANTS

 1-8     OR CHECKS.  (a)  This section applies only to a warrant or check

 1-9     issued by a county treasurer in settlement of a claim against a

1-10     county that has not been presented for payment.

1-11           (b)  A person attempting to recover funds from the county for

1-12     a check or warrant issued by the county treasurer may not charge

1-13     the person to whom the check or warrant was issued and on whose

1-14     behalf the attempted recovery is made, or that person's successors

1-15     or assigns, a fee in an amount equal to more than 10 percent of the

1-16     face value of the check or warrant.

1-17           (c)  A person attempting the recovery for a check or warrant

1-18     that has not been presented for payment shall pay the county a fee

1-19     of one percent of the face value of the check or warrant if the

1-20     county issues a new negotiable check or warrant.

1-21           (d)  A county treasurer may collect a reasonable research fee

1-22     to determine if a claim submitted under this section is valid.  The

1-23     treasurer may include the costs of inquiries to depository banks,

1-24     research of accounting records, and other similar actions in

 2-1     setting the fee.  A county treasurer may require the fee to be paid

 2-2     before a claim may be processed or researched under this section.

 2-3           SECTION 2.  This Act takes effect September 1, 1997, and

 2-4     applies only to a contract for the collection of an overdue county

 2-5     check or warrant made on or after that date.  A contract for the

 2-6     collection of an overdue county check or warrant made before the

 2-7     effective date of this Act is governed by the law as it existed

 2-8     immediately before the effective date of this Act, and that law is

 2-9     continued in effect for that purpose.

2-10           SECTION 3.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended.