SRC-JBJ C.S.S.B. 543 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 543
76R13071 BDH-DBy: Nixon
State Affairs
5/9/1999
Committee Report (Substituted)


DIGEST 

Currently, a governmental entity may choose not to accept checks as a
method of payment for certain services and requirements, although most
governmental entities do accept checks as a form of payment.  However,
Texas law does not require the entities to receive payment for taxes,
goods, services, fees, fines, or penalties in the same manner as the
governmental entity accepts cash. C.S.S.B. 543 would require a governmental
entity to accept checks. 

PURPOSE

As proposed, C.S.S.B. 543 requires a governmental entity to accept checks.

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 Title 10F, Government Code, by adding Chapter 2259, as
follows: 

CHAPTER 2259.  PAYMENTS MADE TO GOVERNMENTAL ENTITY

Sec. 2259.001.  DEFINITIONS.  Defines "bank," "cashier's check," "check,"
"credit card invoice," "drawee," "drawer," "goods," "governmental entity,"
"political subdivision," "service," and "state agency."   

Sec. 2259.002.  METHOD OF PAYMENT.  Requires a governmental entity to
accept a check or a credit card invoice for payment of an amount of money
owed to the governmental entity for taxes, goods, services, fees, fines, or
penalties in the same manner the governmental entity accepts cash. 

Sec. 2259.003.  EXCEPTIONS.  Authorizes a governmental entity to require a
person to remit payment in cash, cashier's check, or money order, if the
person did not duly pay or honor the amount of a check to any office or
department in that governmental entity within the preceding 18-month
period.  Provides that the entity is not required to accept, as payment, a
third-party check, an out-of-state check, or a credit card invoice or check
in certain jailrelated circumstances.  

Sec. 2259.004.  DATE OF PAYMENT.  Provides that acceptance of a check or
credit card invoice constitutes payment as of the date of acceptance by the
government entity, if the check or invoice is duly paid or honored by the
drawee.  Provides that a check or invoice does not constitute payment if
the check or invoice is not paid or honored. 

Sec. 2259.005.  NOTICE OF NONPAYMENT.  Requires a governmental entity to
deliver a written notice at the appropriate address to a person who
attempted payment by check or credit card invoice, regarding nonpayment and
any restriction on the method of payment authorized by Section 2259.003. 
 
Sec. 2259.006.  PROCESSING FEE FOR CREDIT CARD OR CHECK NOT DULY PAID  OR
HONORED.  Authorizes a governmental entity to add a fee for processing a
check or invoice and a $50 administrative fee, to an amount of payment due
if the payment is not paid or honored by the drawee. 

SECTION 2.  Amends Title 10F, Government Code, as follows:
 
SUBTITLE F.  New heading:  STATE AND LOCAL CONTRACTS, PAYMENTS, AND FUND
MANAGEMENT 

SECTION 3.  Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.Emergency clause.


SUMMARY OF COMMITTEE CHANGES

Relating clause.

 Amends the relating clause to include credit card in a payment to a
governmental entity. 

SECTION 1.

Amends proposed Sections 2259.001 through 2259.006, Government Code, to add
definitions for "bank" and "credit card invoice"; to include a credit card
invoice in transactions that a governmental agency must accept, alongside a
check; to add provisions authorizing a governmental entity to not accept a
third-party check, an out-of-state check, or check or credit card payments
in situations regarding jail activities; to include a credit card invoice
in actions in which a governmental entity must date a payment, offer notice
of the payment, and charge fees for a dishonored payment; and to add a new
heading to Section 2259.006.