By Deshotel                                            H.B. No. 565
         77R2144 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a fee charged by a financial institution for cashing a
 1-3     check drawn on that financial institution; providing a penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 276, Finance Code, is amended by adding
 1-6     Section 276.002 to read as follows:
 1-7           Sec. 276.002.  CHECK CASHING FEE. (a)  In this section,
 1-8     "financial institution" means a bank, savings and loan association,
 1-9     savings bank, or credit union.
1-10           (b)  A financial institution may not charge a person a fee
1-11     for cashing a check drawn on that financial institution, regardless
1-12     of whether the person holds an account at that financial
1-13     institution.
1-14           (c)  A financial institution that violates this section is
1-15     liable to the state for a civil penalty of $200 for each violation.
1-16     The attorney general may sue to collect the penalty.
1-17           SECTION 2. This Act takes effect September 1, 2001.