DISHONORED CHECK FEE - 8043.1

Government Code section 6157 authorizes agencies/departments to assess a charge for dishonored checks for a reasonable amount not to exceed the actual costs incurred for the processing and collection. Agencies/Departments may refrain from issuing licenses, permits, etc., or withhold services until the original check amount and the dishonored check fee are paid.

Agencies/Departments shall apply the dishonored check fee to the payer’s account if the license, permit, etc., has been issued or the service rendered. If the payer has no account, a new account shall be established for the original check amount and the dishonored check fee.

As a result of a check being dishonored, the payer may be required to pay a penalty if the replacement payment is received after the penalty date. If a payer pays the amount of the license, permit, service, etc., plus penalty, agencies/departments need not pursue collection of the dishonored check fee.

Agencies/Departments shall account for the amount received from the dishonored check fee as miscellaneous revenue in the fund that primarily supports the cashiering and accounts receivable sections.