HBA-CBW H.B. 565 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 565 By: Deshotel Financial Institutions 3/21/2001 Introduced BACKGROUND AND PURPOSE Currently, Texas law makes no provision for the regulation of fees that a financial institution may charge to nonaccount holders. Several financial institutions in the state charge individuals fees for cashing a check drawn on that particular institution. No federal statute prohibits a federally chartered bank from charging a nonaccount holder for cashing a drawn check. House Bill 565 allows a nonaccount holder to cash a check drawn on the issuing bank without incurring a fee and institutes a civil penalty for each violation by the bank. 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 565 amends the Finance Code to prohibit a financial institution from charging a person a fee for cashing a check drawn on that financial institution, regardless of whether the person holds an account at that financial institution. The bill provides that a financial institution that charges such a fee is liable to the state for a civil penalty of $200 for each violation. The bill authorizes the attorney general to sue to collect the penalty. EFFECTIVE DATE September 1, 2001.