By Carter                                             H.B. No. 1926
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                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.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Government Code 403.023 is amended to read as
 1-6     follows:
 1-7           Sec. 403.023.  CREDIT AND DEBIT CARDS.  (a)  The comptroller
 1-8     may adopt rules relating to the acceptance of credit and debit
 1-9     cards for the payment of fees, taxes, and other charges assessed by
1-10     state agencies.  The rules may:
1-11                 (1)  authorize a state agency to accept credit or debit
1-12     cards, or both types of cards, if the comptroller determines the
1-13     best interests of the state would be promoted;
1-14                 (2)  authorize or require a credit or debit card user
1-15     to pay a processing fee to the state agency that accepts the
1-16     [credit] card; and
1-17                 (3)  authorize a particular state agency to accept
1-18     credit or debit cards without providing the same authorization to
1-19     other state agencies.
1-20           (b)  The comptroller may adopt rules relating to the use of
1-21     credit cards by state agencies to pay for purchases.  The rules
 2-1     may:
 2-2                 (1)  authorize a state agency to use credit cards if
 2-3     the comptroller determines the best interests of the state would be
 2-4     promoted;
 2-5                 (2)  authorize a state agency to use credit cards to
 2-6     pay for purchases without providing the same authorization to other
 2-7     state agencies;
 2-8                 (3)  authorize a state agency to use credit cards to
 2-9     pay for purchases that otherwise may be paid out of the agency's
2-10     petty cash accounts under Subchapter K; and
2-11                 [(4)  authorize the General Services Commission to
2-12     contract with one or more credit card issuers on behalf of state
2-13     agencies.]
2-14           (c)  The comptroller may not adopt rules about a particular
2-15     state agency's acceptance of credit cards that would affect a
2-16     contract that the [state] agency has entered into that is in effect
2-17     on September 1, 1993.  The comptroller may not adopt rules about a
2-18     particular state agency's acceptance of debit cards that would
2-19     affect a contract that the agency has entered into that is in
2-20     effect on September 1, 1999.
2-21           (d)  The comptroller may not adopt rules about a particular
2-22     state agency's acceptance or use of credit or debit cards if
2-23     another law specifically authorizes, requires, prohibits, or
2-24     otherwise regulates the acceptance or use.
2-25           (e)  In this section, "state agency" means:
 3-1                 (1)  a board, commission, department, or other agency
 3-2     in the executive branch of state government that is created by the
 3-3     constitution or a statute of this state, including an institution
 3-4     of higher education as defined by Section 61.003, Education Code,
 3-5     other than a public junior college;
 3-6                 (2)  the legislature or a legislative agency; or
 3-7                 (3)  the supreme court, the court of criminal appeals,
 3-8     a court of appeals, or a state judicial agency.
 3-9           SECTION 2.  Subchapter F, Chapter 2054, Government Code, is
3-10     amended by adding Section 2054.121 to read as follows:
3-11           Sec. 2054.121.  ELECTRONIC COMMERCE WITH LICENSEES AND
3-12     MEMBERS OF PUBLIC.  (a)  This section applies to the use of
3-13     electronic commerce by a state agency to provide services to
3-14     members of the general public or to persons who are regulated by
3-15     the agency when providing the services involves the exchange of
3-16     information and may involve the receipt of payment.  Examples of
3-17     services to which this section applies include:
3-18                 (1)  the routine renewal of a license or permit;
3-19                 (2)  the provision of copies of documents in an
3-20     electronic format;
3-21                 (3)  similar services provided by an agency that may be
3-22     accomplished electronically.
3-23           (b)  Chapter 2177, which applies to the use of electronic
3-24     commerce by a state agency to acquire goods and services, is not
3-25     affected by this section.  This section does not apply to a state
 4-1     agency's use of the Internet or an electronic bulletin board:
 4-2                 (1)  to receive electronic mail, except to the extent
 4-3     that the receipt of electronic mail is part of an electronic
 4-4     commerce transaction; or
 4-5                 (2)  to post generally accessible information that may
 4-6     be retrieved without charge.
 4-7           (c)  The department and the General Services Commission shall
 4-8     cooperate to qualify for catalogue purchasing, under Subchapter B,
 4-9     Chapter 2157, of automated information systems that are suitable
4-10     for conducting electronic commerce transactions between a state
4-11     agency and persons who are regulated by the agency or members of
4-12     the general public.  Before qualifying an electronic commerce
4-13     system for the catalogue, the commission shall consult the
4-14     department.  The department shall determine whether the system is
4-15     generally suitable for the intended task.  The commission shall
4-16     determine whether the security features of the system are
4-17     sufficient to protect the integrity and privacy of exchanged
4-18     information, particularly any information exchanged as part of
4-19     making a payment.
4-20           (d)  A state agency engaging in an electronic commerce
4-21     transaction subject to this section may accept payment by a debit
4-22     or credit card and may designate payment by electronic means as the
4-23     preferred method of payment.  The state agency may waive any
4-24     transaction fee for use of electronic means and accept the amount
4-25     set by statute or rule for the good or service.  The following
 5-1     information, if collected by or for a state agency and if the
 5-2     agency owns or has a right of access to the information, that
 5-3     relates to a payment by debit or credit card under this section, is
 5-4     confidential and is not public information under Chapter 552:
 5-5                 (1)  the fact that a person used a debit or credit card
 5-6     to make payment to a state agency under this section;
 5-7                 (2)  information received by the agency regarding the
 5-8     person's name, address, and card number; and
 5-9                 (3)  information received by the agency that correlates
5-10     the person with the person's card or that correlates the use of the
5-11     person's card with a transaction under this section.
5-12           (e)  The department's rules regarding digital signatures
5-13     apply to an electronic commerce transaction subject to this
5-14     section.
5-15           (f)  A state agency is not required to provide services
5-16     through the use of electronic commerce to members of the general
5-17     public or to persons who are regulated by the agency, but if the
5-18     agency does so and if providing the services involves the exchange
5-19     of information and may involve the receipt of payment, the agency
5-20     shall comply with this section.
5-21           (h)  A state agency that acquires an automated information
5-22     system for the purpose of engaging in electronic commerce that is
5-23     subject to this section shall:
5-24                 (1)  acquire a system that is approved for that purpose
5-25     by the department and the General Services Commission and acquire
 6-1     the system by using the catalogue purchase method under Subchapter
 6-2     B, Chapter 2157; or
 6-3                 (2)  obtain a waiver of the requirements of Subdivision
 6-4     (1) from the department after demonstrating to the department that
 6-5     the agency will more effectively or efficiently engage in
 6-6     electronic commerce by using another system.
 6-7           SECTION 2.  Govt. Code, Sec. 2155.385, Credit Cards. is
 6-8     amended to read as follows:
 6-9           (a)  [If authorized by rule adopted by the comptroller under
6-10     Section 403.023, t] (T)he commission may contract with one or more
6-11     credit card issuers for state agencies to use credit cards to pay
6-12     for purchases (and to handle electronic payment to state agencies
6-13     of fees, taxes, and sales of goods or services produced by the
6-14     agency.  Display of the issuers' logos on agency web sites or other
6-15     electronic presence may be part of the contract).  The commission
6-16     may not enter into a contract that conflicts with the comptroller's
6-17     rules (under Section 403.023).
6-18           (b)  This section does not apply to contracts regarding
6-19     travel services or the use of credit cards to pay for travel
6-20     services under Chapter 2171.
6-21           (c)  In this section and notwithstanding Section 2151.002,
6-22     "state agency" has the meaning assigned by Section 403.023(e).
6-23           SECTION 3.  This Act takes effect September 1, 1999.
6-24           SECTION 4.  The importance of this legislation and the
6-25     crowded condition of the calendars in both houses create an
 7-1     emergency and an imperative public necessity that the
 7-2     constitutional rule requiring bills to be read on three several
 7-3     days in each house be suspended, and this rule is hereby suspended.