By Nixon S.B. No. 543
76R5560 BDH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a payment to a governmental entity by check.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle F, Title 10, Government Code, is amended
1-5 by adding Chapter 2259 to read as follows:
1-6 CHAPTER 2259. PAYMENTS MADE TO GOVERNMENTAL ENTITY
1-7 Sec. 2259.001. DEFINITIONS. In this chapter:
1-8 (1) "Cashier's check" means a draft with respect to
1-9 which the drawer and drawee are the same bank or branches of the
1-10 same bank.
1-11 (2) "Check" means a draft that is payable on demand
1-12 and drawn on a bank.
1-13 (3) "Drawee" means a person ordered in a check to make
1-14 payment.
1-15 (4) "Drawer" means a person who signs or is identified
1-16 in a check as the person ordering payment.
1-17 (5) "Goods" includes supplies, materials, or
1-18 equipment.
1-19 (6) "Governmental entity" means a state agency or a
1-20 political subdivision of this state.
1-21 (7) "Political subdivision" means:
1-22 (A) a county, including a statutory or
1-23 constitutional county court, family district court, probate court,
1-24 or justice of the peace court;
2-1 (B) a municipality, including a municipal court;
2-2 (C) a public school district; or
2-3 (D) a special-purpose district or authority.
2-4 (8) "Service" includes gas and water utility service.
2-5 (9) "State agency" means:
2-6 (A) a board, commission, department, office, or
2-7 other agency in the executive branch of state government that is
2-8 created by the constitution or a statute of this state, including a
2-9 river authority or an institution of higher education as defined by
2-10 Section 61.003, Education Code;
2-11 (B) the legislature or a legislative agency; or
2-12 (C) the Supreme Court of Texas, the Court of
2-13 Criminal Appeals of Texas, a court of appeals, a state district
2-14 court, a state judicial agency, or the State Bar of Texas.
2-15 Sec. 2259.002. METHOD OF PAYMENT. Except as provided by
2-16 Section 2259.003, a governmental entity shall accept a check
2-17 payable to the governmental entity as payment for an amount of
2-18 money owed to the governmental entity, including a payment for
2-19 taxes, goods, services, fees, fines, or penalties, in the same
2-20 manner the governmental entity accepts cash.
2-21 Sec. 2259.003. EXCEPTION. A governmental entity may require
2-22 that a payment from a person who, within the 18-month period
2-23 preceding the date of the payment, has remitted to the governmental
2-24 entity a check that was not duly paid or honored by the drawee must
2-25 be made in cash or by a cashier's check or money order.
2-26 Sec. 2259.004. DATE OF PAYMENT. Acceptance of a check by a
2-27 governmental entity constitutes payment as of the date of
3-1 acceptance if the check is duly paid or honored by the drawee. A
3-2 check that is not duly paid or honored by the drawee does not
3-3 constitute a payment.
3-4 Sec. 2259.005. NOTICE OF NONPAYMENT. If a check accepted by
3-5 a governmental entity as payment is not duly paid or honored by the
3-6 drawee, the governmental entity shall deliver written notice of the
3-7 nonpayment and of any restriction on the method of payment
3-8 authorized by Section 2259.003 to the person who attempted payment
3-9 by check at the address that is:
3-10 (1) listed in the files of the governmental entity; or
3-11 (2) printed on the check if the address of the person
3-12 is not listed in the files of the governmental entity.
3-13 Sec. 2259.006. PROCESSING FEE FOR CHECK NOT DULY PAID OR
3-14 HONORED. If a check accepted by a governmental entity as payment
3-15 is not duly paid or honored by the drawee, the governmental entity
3-16 may add to the amount of payment due from the person who submitted
3-17 the check as payment:
3-18 (1) the amount of any fee for processing the check
3-19 charged to the governmental entity; and
3-20 (2) a fee in an amount not to exceed $50 to cover the
3-21 governmental entity's administrative costs.
3-22 SECTION 2. The heading of Subtitle F, Title 10, Government
3-23 Code, is amended to read as follows:
3-24 SUBTITLE F. STATE AND LOCAL CONTRACTS, PAYMENTS, AND FUND
3-25 MANAGEMENT
3-26 SECTION 3. (a) This Act takes effect September 1, 1999.
3-27 (b) This Act applies only to the method of a payment made on
4-1 or after its effective date. For purposes of Section 2259.003,
4-2 Government Code, as added by this Act, a payment made before the
4-3 effective date of this Act may be considered if the payment was
4-4 made within the period prescribed by that section.
4-5 SECTION 4. The importance of this legislation and the
4-6 crowded condition of the calendars in both houses create an
4-7 emergency and an imperative public necessity that the
4-8 constitutional rule requiring bills to be read on three several
4-9 days in each house be suspended, and this rule is hereby suspended.