BWH C.S.S.B. 655 75(R) BILL ANALYSIS COUNTY AFFAIRS C.S.S.B. 655 By: Lindsay (Hamric) 4-16-97 Committee Report (Substituted) BACKGROUND Local governments are impeded in becoming more "user-friendly" and efficient by the operation of certain statutes and circumstances. Although local governments may allow residents to pay taxes and fines by credit cards, credit card company bylaws disallow passing on surcharges for use of a credit card for payment, even though there are costs and processing fees associated with the use of credit cards. Unlike stores, which pass on and spread these costs in the form of higher prices, governments cannot raise their prices to absorb the costs. This creates a disincentive for local governments to offer the convenience and efficiency of payment by credit card, either over the telephone or, as Texas moves into the future, over the computer. A current statute that purports to allow credit card processing fees is ineffective because credit card companies will not allow these fees to be passed on and because the statute requires, rather than allows, commissioners courts to charge the fees if the county accepts payment by credit cards. In addition, the law does not encourage a process to help citizens register their motor vehicles over the telephone, facsimile machine, or computer. PURPOSE The bill reforms current law on credit card processing fees by eliminating the requirement that the fee be tied to a percentage. In large counties (those with a population of 2.8 million or more), commissioners courts would be allowed to charge a handling fee for payment by electronic means, which is an indirect -- and allowable -- method to recoup the expense of allowing citizens to pay taxes and fees by credit cards. The bill also helps a person register a motor vehicle by telephone, facsimile machine, or computer, using an electronic submission of proof of financial responsibility, if the commissioners court chooses that option and the Department of Transportation approves it. 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 the heading to Subchapter A, Chapter 130, Local Government Code, to allow payment by electronic means. SECTION 2. Amends Section 130.001, Local Government Code, to define "payment by electronic means." SECTION 3. Adds Section 130.0046, Local Government Code, to allow a county tax assessorcollector to collect a handling fee for processing a payment by electronic means. Provides that the handling fee is in addition to the amount of the fee or tax and may be paid conditionally by electronic means at the same time the tax or fee is paid. SECTION 4. Amends the heading to Chapter 132, Local Government Code, to allow payment by electronic means. SECTION 5. Amends Section 132.001, Local Government Code, to define "payment by electronic means." SECTION 6. Amends Section 132.002, Local Government Code, to allow a commissioners court to authorize a county or precinct officer who collects fees, fines, court costs, or other charges on behalf of the county or state to accept payment by credit card and to collect and retain a handling fee. Allows a commissioners court to authorize a county or precinct officer who collects fees, fines, court costs, or other charges on behalf of the county or state to accept payment by electronic means and collect and retain a handling fee for processing the payment by electronic means. Allows a commissioners court to authorize acceptance of payment by credit card or by electronic means without requiring collection of a fee. SECTION 7. Amends Section 132.003, Local Government Code, to require a commissioners court that authorizes a handling fee for payment by electronic means to set a flat rate not to exceed $5 per transaction or a rate reasonably related to the expense incurred by the county or precinct officer in processing a payment by electronic means, not to exceed 5 percent of the amount of the fee, court cost, or other charge. SECTION 8. Amends Section 502.153, Transportation Code, to allow electronic submission of evidence of financial responsibility. Allows the county assessor-collector to provide a statement, rather than a document that contains a statement, providing certain information to the person registering a motor vehicle. Requires electronic submission to be in a format submitted by electronic means, approved by the Department of Transportation, and authorized by the commissioners court for use in the county. SECTION 9. Amends Section 601.087, Transportation Code, to state that an electronic submission of evidence of financial responsibility is a governmental record for Penal Code purposes. SECTION 10. Amends Section 601.196(a), Transportation Code, to create an offense if a person files or offers for filing an electronic submission of financial responsibility that the person knows or has reason to believe is false. SECTION 11. Effective date: September 1, 1997. SECTION 12. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 655 differs from S.B. 655 as follows: 1) SECTION 1 of the original is amended by moving the amended Section 132.002 to SECTION 6 of the substitute, and SECTION 1 is now the amended heading to Subchapter A, Chapter 130, Local Government Code; 2) SECTION 2 of the original is amended by moving the emergency clause to SECTION 12 of the substitute, and SECTION 2 now amends Section 130.001, Local Government Code, to define "payment by electronic means"; 3) New SECTION 3 of the substitute adds Section 130.0046, Local Government Code, to allow a county tax assessor-collector to collect a handling fee for processing a payment by electronic means, and provides that the handling fee is in addition to the amount of the fee or tax and may be paid conditionally by electronic means at the same time the tax or fee is paid; 4) New SECTION 4 of the substitute amends the heading to Chapter 132, Local Government Code, to allow payment by electronic means; 5) New SECTION 5 of the substitute amends Section 132.001, Local Government Code, to define "payment by electronic means"; 6) New SECTION 6 of the substitute amends Section 132.002, Local Government Code, to allow a commissioners court to authorize a county or precinct officer who collects fees, fines, court costs, or other charges to accept payment by credit card and sets out the procedure for the collection by credit card. The Section also allows a commissioners court to authorize acceptance of payment by credit card or by electronic means without requiring collection of a fee; 7) New SECTION 7 of the substitute amends Section 132.003, Local Government Code, to allow a commissioners court to authorize a handling fee for payment by electronic means; 8) New SECTION 8 of the substitute amends Section 502.153, Transportation Code, to allow electronic submission of evidence of financial responsibility; 9) New SECTION 9 of the substitute amends Section 601.087, Transportation Code, to state that an electronic submission of evidence of financial responsibility is a governmental record for Penal Code purposes; 10) New SECTION 10 of the substitute amends Section 601.196(a), Transportation Code, to create an offense if a person files or offers for filing an electronic submission of financial responsibility that the person knows or has reason to believe is false.