CS H.B. 16 75(R)BILL ANALYSIS


WAYS & MEANS
H.B. 16
By: Chisum
2-17-97
Committee Report (Unamended)



BACKGROUND 

Credit card companies often enter into agreements with organizations or
businesses to produce a credit card design or logo that will appeal to a
particular audience.  The credit card issuer hopes to garner the business
of a group of people that may not have previously been customers; the
organization depicted on the card receives a percentage of all the sales
charged with the card.  If the state entered into these types of
agreements, it could raise money for various state agencies and
institutions. 

PURPOSE

The bill would allow the State Parks Account in the Texas Parks and
Wildlife Department to benefit from a credit card promoting that purpose. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Chapter 403, Government Code, by adding Section 403.026,
CREDIT CARD AGREEMENT BENEFITTING STATE. 

(a)  Authorizes the comptroller to enter into an agreement with a credit
card issuer with certain provisions: 

(1)  The issuer will pay the comptroller an amount based on usage of the
card; and  

(2)  The issuer is permitted to represent to the public that use of the
credit card benefits state parks and to design the cards accordingly. 

(b)  Requires the comptroller to approve the design of the cards, and any
representation of benefits to the state. 

(c)  Specifies the money received from usage of the card will be credited
to the State Parks Account under the Parks and Wildlife Code, Section
11.035. 

SECTION 2.Emergency clause.