HBA-BSM, MPM H.B. 136 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 136
By: Deshotel
Financial Institutions
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

Fees have become a steady and increasing revenue source for financial
institutions.  Among the fees charged by institutions are those imposed for
the return of a check for insufficient funds.  Under current law, financial
institutions are prohibited from charging greater than $25 per returned
check. House Bill 136 reduces the maximum fee amount imposed by an
institution to $15. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 136 amends the law to decrease from $25 to $15 the amount of the
processing fee that may be charged to a drawer or endorser of a dishonored
check by a holder of the check or its assignee, agent, representative, or
other person retained by the holder to seek collection of the face value of
the check on its return to the holder following its dishonor by a payor. 

EFFECTIVE DATE

September 1, 2001.