By Hinojosa, et al.                                   H.B. No. 2190
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to prima facie evidence of the offense of theft by check
 1-3     and to certain actions based on nonpayment of a check.
 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 by issuing or passing a
 1-8     check or similar sight order for the payment of money not later
 1-9     than the seventh day after the date the actor took possession of
1-10     the property, or if the actor secured performance of service by
1-11     issuing or passing a check or similar sight order for the payment
1-12     of money, when the issuer did not have sufficient funds in or on
1-13     deposit with the bank or other drawee for the payment in full of
1-14     the check or order as well as all other checks or orders then
1-15     outstanding, it is prima facie evidence of his intent to deprive
1-16     the owner of property under Section 31.03 (Theft) including a
1-17     drawee or third-party holder in due course who negotiated the check
1-18     or to avoid payment for service under Section 31.04 (Theft of
1-19     Service) (except in the case of a postdated check or order) if:
1-20                 (1)  he had no account with the bank or other drawee at
1-21     the time he issued the check or order; or
1-22                 (2)  payment was refused by the bank or other drawee
1-23     for lack of funds or insufficient funds, on presentation within 30
1-24     days after issue, and the issuer failed to pay the holder in full
 2-1     within 10 days after receiving notice of that refusal.
 2-2           SECTION 2.  Chapter 31, Penal Code, is amended by adding
 2-3     Section 31.061 to read as follows:
 2-4           Sec. 31.061.  THREATENING OR PURSUING ACTION TO COLLECT
 2-5     CERTAIN CHECKS.  A person may not file or threaten to file a
 2-6     charge, complaint, or criminal prosecution under Section 31.03,
 2-7     31.04, or 32.41 based on nonpayment of a check or similar sight
 2-8     order for the payment of money if the person from whom collection
 2-9     is sought gave the check or other order in exchange for a cash
2-10     advance and the person making the advance received compensation
2-11     exceeding five percent of the amount of the check or other order.
2-12     This section may not be construed to authorize the practice of
2-13     requiring a check to be given as security for a loan.
2-14           SECTION 3.  This Act takes effect September 1, 1999, and
2-15     applies only to an offense committed on or after that date.  An
2-16     offense committed before the effective date of this Act is covered
2-17     by the law in effect when the offense was committed, and the former
2-18     law is continued in  effect for that purpose.  For purposes of this
2-19     section, an offense was committed before the effective date of this
2-20     Act if any element of the offense occurred before that date.
2-21           SECTION 4.  The importance of this legislation and the
2-22     crowded condition of the calendars in both houses create an
2-23     emergency and an imperative public necessity that the
2-24     constitutional rule requiring bills to be read on three several
2-25     days in each house be suspended, and this rule is hereby suspended.