SRC-JBJ H.B. 2429 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2429
76R12735 JRD-FBy: King, Tracy (Zaffirini)
Finance
5/12/1999
Engrossed


DIGEST 

Currently, vendors doing business with the state cannot choose their method
of payment by the comptroller of public accounts.  Unless a vendor does not
have an account with a financial institution, accounts must be paid through
the direct deposit system.  This has caused problems for some small
businesses that do not have accounting systems sophisticated enough for
this method of payment.  H.B. 2429 would allow the vendor to choose either
an electronic transfer or a warrant as the method of payment by the
comptroller. 

PURPOSE

As proposed, H.B. 2429 would authorize certain vendors to choose either an
electronic transfer or a warrant as the method of payment by the
comptroller. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 403.016(c) and (h), Government Code, to include
payments to vendors who choose to receive payment through the electronic
funds transfer system rather than by warrant among the payments for which
the comptroller is required to use the electronic fund transfer system.
Requires the comptroller to issue a warrant to pay a person if the person
chooses to receive the payment by warrant. 

SECTION 2.  Repealer:  Section 403.016(k), Government Code (comptroller
required to issue a warrant for certain purchases). 

SECTION 3.Emergency clause.
  Effective date: upon passage.