76R14352 JRD-F                           
         By Carter                                             H.B. No. 1926
         Substitute the following for H.B. No. 1926:
         By Danburg                                        C.S.H.B. No. 1926
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the provision of certain state agency services to the
 1-3     public through the use of electronic commerce and to the making or
 1-4     receipt of payment by a state governmental entity.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 403.023, Government Code, is amended to
 1-7     read as follows:
 1-8           Sec. 403.023.  CREDIT, DEBIT, AND CHARGE CARDS; ELECTRONIC
 1-9     FUNDS TRANSFER.  (a)  The comptroller may adopt rules relating to
1-10     the acceptance of credit, debit, and charge cards and electronic
1-11     funds transfer for the payment of fees, taxes, and other charges
1-12     assessed by state agencies.  The rules may:
1-13                 (1)  authorize a state agency to accept credit cards,
1-14     debit cards, charge cards, electronic funds transfer, or a
1-15     combination of those methods if the comptroller determines the best
1-16     interests of the state would be promoted; and
1-17                 (2)  [authorize or require a credit card user to pay a
1-18     processing fee to the state agency that accepts the credit card;
1-19     and]
1-20                 [(3)]  authorize a particular state agency to accept
1-21     credit cards, debit cards, charge cards, or electronic funds
1-22     transfer without providing the same authorization to other state
1-23     agencies.
1-24           (b)  The comptroller may adopt rules relating to the use of
 2-1     credit, debit, and charge cards and electronic funds transfer by
 2-2     state agencies to pay for purchases.  The rules may:
 2-3                 (1)  authorize a state agency to use credit cards,
 2-4     debit cards, charge cards, electronic funds transfer, or a
 2-5     combination of those methods if the comptroller determines the best
 2-6     interests of the state would be promoted;
 2-7                 (2)  authorize a state agency to use credit cards,
 2-8     debit cards, charge cards, or electronic funds transfer to pay for
 2-9     purchases without providing the same authorization to other state
2-10     agencies; and
2-11                 (3)  authorize a state agency to use credit cards,
2-12     debit cards, charge cards, or electronic funds transfer to pay for
2-13     purchases that otherwise may be paid out of the agency's petty cash
2-14     accounts under Subchapter K[; and]
2-15                 [(4)  authorize the General Services Commission to
2-16     contract with one or more credit card issuers on behalf of state
2-17     agencies].
2-18           (c)  The comptroller may not adopt rules about a particular
2-19     state agency's acceptance of credit cards that would affect a
2-20     contract that the state agency has entered into that is in effect
2-21     on September 1, 1993. The comptroller may not adopt rules about a
2-22     particular state agency's acceptance of debit or charge cards that
2-23     would affect a contract that the state agency has entered into that
2-24     is in effect on September 1, 1999.
2-25           (d)  The comptroller may not adopt rules about a particular
2-26     state agency's acceptance or use of credit, debit, or charge cards
2-27     or electronic funds transfer if another law specifically
 3-1     authorizes, requires, prohibits, or otherwise regulates the
 3-2     acceptance or use.
 3-3           (e)  In this section, "state agency" means:
 3-4                 (1)  a board, commission, department, or other agency
 3-5     in the executive branch of state government that is created by the
 3-6     constitution or a statute of this state, including an institution
 3-7     of higher education as defined by Section 61.003, Education Code,
 3-8     other than a public junior college;
 3-9                 (2)  the legislature or a legislative agency; or
3-10                 (3)  the supreme court, the court of criminal appeals,
3-11     a court of appeals, or a state judicial agency.
3-12           SECTION 2.  Subchapter F, Chapter 2054, Government Code, is
3-13     amended by adding Section 2054.121 to read as follows:
3-14           Sec. 2054.121.  ELECTRONIC COMMERCE WITH LICENSEES AND
3-15     MEMBERS OF PUBLIC.  (a)  This section applies to the use of
3-16     electronic commerce by a state agency to provide services to
3-17     members of the general public or to persons who are regulated by
3-18     the agency when providing the services involves the exchange of
3-19     information and may involve the receipt of payment.  Examples of
3-20     services to which this section applies include:
3-21                 (1)  the routine renewal of a license or permit;
3-22                 (2)  the provision of copies of documents in an
3-23     electronic format;
3-24                 (3)  the sale of products; and
3-25                 (4)  similar services provided by an agency that may be
3-26     accomplished electronically.
3-27           (b)  Chapter 2177, which applies to the use of electronic
 4-1     commerce by a state agency to acquire goods and services, is not
 4-2     affected by this section. This section does not apply to a state
 4-3     agency's use of the Internet or an electronic bulletin board:
 4-4                 (1)  to receive electronic mail, except to the extent
 4-5     that the receipt of electronic mail is part of an electronic
 4-6     commerce transaction; or
 4-7                 (2)  to post generally accessible information that may
 4-8     be retrieved without charge.
 4-9           (c)  The department and the General Services Commission shall
4-10     cooperate to qualify for catalogue purchasing, under Subchapter B,
4-11     Chapter 2157, of automated information systems that are suitable
4-12     for conducting electronic commerce transactions between a state
4-13     agency and persons who are regulated by the agency or members of
4-14     the general public.  Before qualifying an electronic commerce
4-15     system for the catalogue, the commission shall consult the
4-16     department.  The department shall determine whether the system
4-17     meets acceptable standards applicable for performing the intended
4-18     task.  The department and the commission shall determine whether
4-19     the security features of the system are sufficient to protect the
4-20     integrity and privacy of exchanged information, particularly any
4-21     information exchanged as part of making a payment.
4-22           (d)  A state agency engaging in an electronic commerce
4-23     transaction subject to this section may accept payment by a debit,
4-24     credit, or charge card or by electronic funds transfer and may
4-25     designate payment by one or more of those means as the preferred
4-26     method of payment.  Out of the amount that the state agency
4-27     collects in accordance with a statute, rule, or agency policy, the
 5-1     state agency may pay any transaction fee that the state incurs by
 5-2     accepting payment by one of those means.  The following
 5-3     information, if collected by or for a state agency and if the
 5-4     agency owns or has a right of access to the information, that
 5-5     relates to a payment by debit, credit, or charge card or by
 5-6     electronic funds transfer under this section, is confidential and
 5-7     is not public information under Chapter 552:
 5-8                 (1)  the fact that a person used a debit, credit, or
 5-9     charge card or electronic funds transfer to make payment to a state
5-10     agency under this section;
5-11                 (2)  information received by the agency regarding the
5-12     person's name, address, and card or account number; and
5-13                 (3)  information received by the agency that correlates
5-14     the person with the person's card or account or that correlates the
5-15     use of the person's card or account with a transaction under this
5-16     section.
5-17           (e)  The department's rules regarding digital signatures
5-18     apply to an electronic commerce transaction subject to this
5-19     section.  This section does not require the use of a digital
5-20     signature for an electronic commerce transaction that can be
5-21     accomplished without the use of a digital signature.
5-22           (f)  A state agency is not required to provide services
5-23     through the use of electronic commerce to members of the general
5-24     public or to persons who are regulated by the agency, but if the
5-25     agency does so and if providing the services involves the exchange
5-26     of information and may involve the receipt of payment, the agency
5-27     shall comply with this section.
 6-1           (g)  A state agency that acquires an automated information
 6-2     system for the purpose of engaging in electronic commerce that is
 6-3     subject to this section shall:
 6-4                 (1)  acquire a system that is approved for that purpose
 6-5     by the department and the General Services Commission and acquire
 6-6     the system by using the catalogue purchase method under Subchapter
 6-7     B, Chapter 2157; or
 6-8                 (2)  obtain a waiver of the requirements of Subdivision
 6-9     (1) from the department after demonstrating to the department that
6-10     the agency will more effectively or efficiently engage in
6-11     electronic commerce by using another system.
6-12           SECTION 3.  Section 2155.385, Government Code, is amended by
6-13     amending the section heading and Subsection (a) to read as follows:
6-14           Sec. 2155.385.  CREDIT, DEBIT, AND CHARGE CARDS; ELECTRONIC
6-15     FUNDS TRANSFER.
6-16           (a)  The [If authorized by rule adopted by the comptroller
6-17     under Section 403.023, the] commission may contract with one or
6-18     more credit, debit, or charge card issuers or electronic funds
6-19     transfer services for state agencies to use credit, debit, or
6-20     charge cards or electronic funds transfer [credit cards] to pay for
6-21     purchases.  The commission may not enter into a contract under this
6-22     subsection that conflicts with the comptroller's rules under
6-23     Section 403.023.
6-24           SECTION 4.  Chapter 2172, Government Code, is amended by
6-25     adding Section 2172.007 to read as follows:
6-26           Sec. 2172.007.  CONTRACTS RELATED TO RECEIVING PAYMENT BY
6-27     CREDIT, DEBIT, OR CHARGE CARD OR ELECTRONIC FUNDS TRANSFER.  (a)
 7-1     The commission may contract with one or more credit, debit, or
 7-2     charge card issuers or electronic funds transfer services for state
 7-3     governmental entities that accept the use of credit, debit, or
 7-4     charge cards or electronic funds transfer to receive payment of
 7-5     taxes, regulatory fees, or fees or charges for goods or services
 7-6     provided by a state governmental entity.
 7-7           (b)  A contract under this section may provide for displaying
 7-8     an issuer's logo on a state governmental entity's Internet site,
 7-9     electronic bulletin board, or analogous electronic presence.
7-10           (c)  The commission may not enter into a contract under this
7-11     section that conflicts with the comptroller's rules under Section
7-12     403.023.
7-13           SECTION 5.  This Act takes effect September 1, 1999.
7-14           SECTION 6.  The importance of this legislation and the
7-15     crowded condition of the calendars in both houses create an
7-16     emergency and an imperative public necessity that the
7-17     constitutional rule requiring bills to be read on three several
7-18     days in each house be suspended, and this rule is hereby suspended.