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A BILL TO BE ENTITLED
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AN ACT
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relating to collection of a service charge by a county or |
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municipality for a dishonored credit card. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 132.004, Local Government Code, is |
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amended to read as follows: |
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Sec. 132.004. SERVICE CHARGE. (a) If, for any reason, a |
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payment by credit card is not honored by the credit card company on |
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which the funds are drawn, the county or municipality may collect a |
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service charge from the person who owes the fee, fine, court cost, |
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or other charge. The service charge is in addition to the original |
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fee, fine, court cost, or other charge and is for the collection of |
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that original amount. The amount of the service charge is the same |
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amount as the fee charged for the collection of a check drawn on an |
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account with insufficient funds. |
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(b) A county or municipality may not collect a service |
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charge under Subsection (a) if: |
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(1) the county or municipality is notified at the time |
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of payment that the payment is not honored; and |
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(2) the person immediately submits to the county or |
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municipality an alternative form of payment. |
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SECTION 2. Section 132.004, Local Government Code, as |
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amended by this Act, applies only to a service charge imposed on or |
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after the effective date of this Act. A service charge imposed |
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before the effective date of this Act is governed by the law |
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applicable to the service charge immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |