By Reyna of Bexar                                     H.B. No. 3787
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain agreements made by financial institutions.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter B, Chapter 4, Business & Commerce
 1-5     Code, is amended by adding Section 4.217 to read as follows:
 1-6           Sec. 4.217.  PROCESSING FEE FOR DISHONORED CHECK.  A bank may
 1-7     not require a customer to pay a fee for a check because it is
 1-8     subsequently dishonored unless the check is drawn after the date on
 1-9     which the drawer receives notice that a check on the same account
1-10     has been dishonored.
1-11           SECTION 2.  Subchapter D, Chapter 35, Business & Commerce
1-12     Code, is amended by adding Section 35.55 to read as follows:
1-13           Sec. 35.55.  AGREEMENT WITH RESPECT TO DISHONORED CHECK.  A
1-14     financial institution may not enter into an agreement with a
1-15     customer to limit the bank's liability with respect to a check that
1-16     is subsequently dishonored.
1-17           SECTION 3.  This Act takes effect September 1, 1999.
1-18           SECTION 4.  The importance of this legislation and the
1-19     crowded condition of the calendars in both houses create an
1-20     emergency and an imperative public necessity that the
1-21     constitutional rule requiring bills to be read on three several
 2-1     days in each house be suspended, and this rule is hereby suspended.