By Deshotel                                            H.B. No. 136
         77R858 MTB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the fees charged in connection with collection of a
 1-3     dishonored check.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 1(a), Chapter 617, Acts of the 68th
 1-6     Legislature, Regular Session, 1983 (Article 9022, Vernon's Texas
 1-7     Civil Statutes), is amended to read as follows:
 1-8           (a)  The holder of a check or its assignee, agent,
 1-9     representative, or any other person retained by the holder to seek
1-10     collection of the face value of the dishonored check on return of
1-11     the check to the holder following its dishonor by a payor may
1-12     charge the drawer or endorser a reasonable processing fee, which
1-13     shall not exceed $15 [25]. A person may not charge a processing fee
1-14     to a drawer or endorser under this subsection if the fee has been
1-15     collected under Article 102.007(e) or Article 102.0071, Code of
1-16     Criminal Procedure.  If a processing fee has been collected under
1-17     this subsection and the holder subsequently receives a fee
1-18     collected under Article 102.007(e) or Article 102.0071, Code of
1-19     Criminal Procedure, the holder shall immediately refund the fee
1-20     previously collected from the drawer or endorser.  Notwithstanding
1-21     any other provisions of law, a loan agreement made under Chapter
1-22     342, Finance Code, may provide that on return of a dishonored check
1-23     given in payment under the agreement, the holder may charge the
1-24     obligor under the agreement the processing fee authorized by this
 2-1     Act, and the fee may be added to the unpaid balance owed under the
 2-2     agreement, except that interest may not be charged on the fee
 2-3     during the term of the agreement.
 2-4           SECTION 2. (a)  The change in law made by this Act applies
 2-5     only to a check issued on or after the effective date of this Act.
 2-6           (b)  A check issued before the effective date of this Act is
 2-7     covered by the law in effect when the check was issued, and the
 2-8     former law is continued in effect for that purpose.
 2-9           SECTION 3. This Act takes effect September 1, 2001.