IMF H.B. 1209 75(R)BILL ANALYSIS STATE AFFAIRS H.B. 1209 By: Maxey 4-4-97 Committee Report (Unamended) BACKGROUND The Comptroller of Public Accounts Texas Performance Review, in the December 1996 report "Disturbing the Peace" recommended that the legislature allow the comptroller to pay vendors via electronic funds transfers. The United States Congress passed legislation in 1996 that requires all new recipients of government payments to receive them electronically and eventually all recipients with accounts at financial institutions will have to accept funds from the federal government electronically. Currently, state law allows vendors to voluntarily request state payment via electronic funds transfer, and the comptroller pays roughly 8,100 vendors electronically, about 8 percent of all payments. PURPOSE As proposed, H.B. 1209 would effectively translate the comptroller's recommendations into law. It would require the comptroller to pay all vendors electronically and allow the comptroller to schedule payments and bundle interest payments into one warrant to vendors. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant additional rulemaking authority to the Comptroller of Public Accounts in SECTION 3 (a) (Section 2251.026(f) Government Code) of the bill. SECTION BY SECTION ANALYSIS SECTION 1. (a) Amends Section 403.016 of the Government Code by amending subsection (c) and adding subsection (k) as follows: Section 403.016 (c) requires the comptroller to use electronic fund transfers to pay all vendors. Section 403.016 (k) states that the comptroller may not issue a warrant to pay a vendor even if payment by electronic funds transfer would be impractical or more costly to the vendor. SECTION 1. (b) Effective date of this SECTION: September 1, 1998. SECTION 2. Amends Section 2155.382 of the Government Code by adding Subsections (c)-(e) as follows: Section 2155.382 (c) allows the comptroller to issue a warrant directly to a vendor, and may bundle numerous payments to a single vendor into a single warrant. Section 2155.382 (d) directs the comptroller to allow or require a state agency to schedule payments from the comptroller to the vendor. The comptroller must require advance scheduling of payments when it is advantageous to the state. Section 2155.382 (e) allows the comptroller to require vendors to provide payment information, identification numbers, and account numbers directly to the comptroller. SECTION 3. (a) Amends Section 2251.026 of the Government Code by adding Subsections (b)(f) as follows: Section 2251.026 (b)-(f) require the comptroller to compute and pay the interest due at the time payment is made on the principal. The provisions also require the comptroller to submit the interest payment with the net amount due. Prohibits the comptroller or a state agency to require a vendor to petition, bill, or wait an additional day for the interest payment. Allows the comptroller to adopt rules to administer this section. SECTION 3. (b) Effective date for this SECTION: September 1, 1999. Makes this SECTION prospective. SECTION 4. (a) Repeals Section 2251.041 of the Government code which requires a vendor to present a claim for interest no later than 6 months after the date the vendor receives payment. SECTION 4. (b) Effective date for this SECTION: September 1, 1999. Makes this SECTION prospective. SECTION 5. Emergency clause.