SRC-JBJ S.B. 543 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 543
76R5560 BDH-DBy: Nixon
State Affairs
3/26/1999
As Filed


DIGEST 

Currently, a governmental entity may choose not to accept checks as a
method of payment for certain services and requirements, although most
governmental entities do accept checks as a form of payment. However, Texas
law does not require the entities to receive payment for taxes, goods,
services, fees, fines, or penalties in the same manner as the governmental
entity accepts cash.  S.B. 543 would require a governmental entity to
accept checks. 

PURPOSE

As proposed, S.B. 543 requires a governmental entity to accept checks.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 10F, Government Code, by adding Chapter 2259, as
follows: 

CHAPTER 2259.  PAYMENTS MADE TO GOVERNMENTAL ENTITY

Sec. 2259.001.  DEFINITIONS.  Defines "cashier's check," "check," "drawee,"
"drawer," "goods," "governmental entity," "political subdivision,"
"service," and "state agency."   

Sec. 2259.002.  METHOD OF PAYMENT.  Requires a governmental entity to
accept a check payable to the governmental entity as payment for taxes,
goods, services, fees, fines, or penalties in the same manner the
governmental entity accepts cash. 

Sec. 2259.003.  EXCEPTION.  Authorizes a governmental entity to require a
person to remit payment in cash, cashier's check, or money order, if the
person did not duly pay or honor the amount of a check within the preceding
18-month period. 

Sec. 2259.004.  DATE OF PAYMENT.  Provides that a check constitutes payment
as of the date of acceptance by the government entity, if the check is duly
paid or honored by the drawee. Provides that a check does not constitute
payment if the check is not paid or honored. 

Sec. 2259.005.  NOTICE OF NONPAYMENT.  Requires a governmental entity to
deliver a written notice at the appropriate address to a person who
attempted payment by check, regarding nonpayment and any restriction on the
method of payment authorized by Section 2259.003. 
 
Sec. 2259.006.  PROCESSING FEE FOR CHECK NOT DULY PAID OR HONORED.
Authorizes a governmental entity to add a fee for processing a check and a
$50 administrative fee, to an amount of payment due if the payment is not
paid or honored by the drawee. 

SECTION 2.  Amends Title 10F, Government Code, as follows:
 
SUBTITLE F.  New heading:  STATE AND LOCAL CONTRACTS, PAYMENTS, AND FUND
MANAGEMENT 

SECTION 3.  Effective date: September 1, 1999.
   Makes application of this Act prospective.

SECTION 4.Emergency clause.