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.