| 1 | 1 | | 85R12710 SCL-D |
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| 2 | 2 | | By: Alonzo H.B. No. 2922 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to collection of a service charge by a county or |
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| 8 | 8 | | municipality for a dishonored credit card. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 132.004, Local Government Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | Sec. 132.004. SERVICE CHARGE. (a) If, for any reason, a |
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| 13 | 13 | | payment by credit card is not honored by the credit card company on |
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| 14 | 14 | | which the funds are drawn, the county or municipality may collect a |
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| 15 | 15 | | service charge from the person who owes the fee, fine, court cost, |
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| 16 | 16 | | or other charge. The service charge is in addition to the original |
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| 17 | 17 | | fee, fine, court cost, or other charge and is for the collection of |
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| 18 | 18 | | that original amount. The amount of the service charge is the same |
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| 19 | 19 | | amount as the fee charged for the collection of a check drawn on an |
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| 20 | 20 | | account with insufficient funds. |
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| 21 | 21 | | (b) A county or municipality may not collect a service |
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| 22 | 22 | | charge under Subsection (a) if: |
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| 23 | 23 | | (1) the county or municipality is notified at the time |
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| 24 | 24 | | of payment that the payment is not honored; and |
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| 25 | 25 | | (2) the person immediately submits to the county or |
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| 26 | 26 | | municipality an alternative form of payment. |
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| 27 | 27 | | SECTION 2. Section 132.004, Local Government Code, as |
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| 28 | 28 | | amended by this Act, applies only to a service charge imposed on or |
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| 29 | 29 | | after the effective date of this Act. A service charge imposed |
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| 30 | 30 | | before the effective date of this Act is governed by the law |
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| 31 | 31 | | applicable to the service charge immediately before the effective |
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| 32 | 32 | | date of this Act, and that law is continued in effect for that |
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| 33 | 33 | | purpose. |
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| 34 | 34 | | SECTION 3. This Act takes effect September 1, 2017. |
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