By: Nixon S.B. No. 543
A BILL TO BE ENTITLED
AN ACT
1-1 relating to a payment to a governmental entity by credit card or
1-2 check.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle F, Title 10, Government Code, is amended
1-5 by adding Chapter 2259 to read as follows:
1-6 CHAPTER 2259. PAYMENTS MADE TO GOVERNMENTAL ENTITY
1-7 Sec. 2259.001. DEFINITIONS. In this chapter:
1-8 (1) "Bank" means a person engaged in the business of
1-9 banking, including a savings bank, savings and loan association,
1-10 credit union, or trust company.
1-11 (2) "Cashier's check" means a draft with respect to
1-12 which the drawer and drawee are the same bank or branches of the
1-13 same bank.
1-14 (3) "Check" means a draft that is payable on demand
1-15 and drawn on a bank.
1-16 (4) "Credit card invoice" means the document
1-17 authorized by the holder of a credit card to be used to provide
1-18 payment of an amount from the holder's credit card account.
1-19 (5) "Drawee" means a person ordered in a check to make
1-20 payment.
1-21 (6) "Drawer" means a person who signs or is identified
1-22 in a check as the person ordering payment.
1-23 (7) "Goods" includes supplies, materials, or
1-24 equipment.
2-1 (8) "Governmental entity" means a state agency or a
2-2 political subdivision of this state.
2-3 (9) "Political subdivision" means:
2-4 (A) a county, including a statutory or
2-5 constitutional county court, family district court, probate court,
2-6 or justice of the peace court;
2-7 (B) a municipality, including a municipal court;
2-8 (C) a public school district; or
2-9 (D) a special-purpose district or authority.
2-10 (10) "Service" includes gas and water utility service.
2-11 (11) "State agency" means:
2-12 (A) a board, commission, department, office, or
2-13 other agency in the executive branch of state government that is
2-14 created by the constitution or a statute of this state, including a
2-15 river authority or an institution of higher education as defined by
2-16 Section 61.003, Education Code;
2-17 (B) the legislature or a legislative agency; or
2-18 (C) the Supreme Court of Texas, the Court of
2-19 Criminal Appeals of Texas, a court of appeals, a state district
2-20 court, a state judicial agency, or the State Bar of Texas.
2-21 Sec. 2259.002. METHOD OF PAYMENT. Except as provided by
2-22 Section 2259.003, a governmental entity shall accept a check
2-23 payable to the governmental entity or a credit card invoice for the
2-24 payment of an amount of money owed to the governmental entity,
2-25 including a payment for taxes, goods, services, fees, fines, or
2-26 penalties, in the same manner the governmental entity accepts cash.
3-1 Sec. 2259.003. EXCEPTIONS. (a) A governmental entity may
3-2 require that a payment from a person who, within the 18-month
3-3 period preceding the date of the payment, has remitted to any
3-4 office or department in the governmental entity a check that was
3-5 not duly paid or honored by the drawee must be made in cash or by a
3-6 cashier's check or money order.
3-7 (b) A governmental entity is not required to accept a
3-8 third-party check or an out-of-state check as payment.
3-9 (c) A governmental entity is not required to accept a credit
3-10 card invoice or check as payment at a jail commissary or as payment
3-11 from a person participating in a jail work release program.
3-12 (d) A credit card invoice or check accepted by a
3-13 governmental entity as payment for a bail bond must be duly paid or
3-14 honored by the credit card issuer or drawee before the prisoner may
3-15 be released on the bond.
3-16 Sec. 2259.004. DATE OF PAYMENT. Acceptance of a credit card
3-17 invoice or check by a governmental entity constitutes payment as of
3-18 the date of acceptance if the credit card invoice or check is duly
3-19 paid or honored by the credit card issuer or drawee. A credit card
3-20 invoice or check that is not duly paid or honored by the credit
3-21 card issuer or drawee does not constitute a payment.
3-22 Sec. 2259.005. NOTICE OF NONPAYMENT. If a credit card
3-23 invoice or check accepted by a governmental entity as payment is
3-24 not duly paid or honored by the credit card issuer or drawee, the
3-25 governmental entity shall send written notice of the nonpayment and
3-26 of any restriction on the method of payment authorized by Section
4-1 2259.003 to the person who attempted payment by credit card invoice
4-2 or check at the address that is:
4-3 (1) listed in the files of the governmental entity; or
4-4 (2) written or printed on the credit card invoice or
4-5 check if the address of the person is not listed in the files of
4-6 the governmental entity.
4-7 Sec. 2259.006. PROCESSING FEE FOR CREDIT CARD OR CHECK NOT
4-8 DULY PAID OR HONORED. If a credit card invoice or check accepted
4-9 by a governmental entity as payment is not duly paid or honored by
4-10 the credit card issuer or drawee, the governmental entity may add
4-11 to the amount of payment due from the person who submitted the
4-12 credit card invoice or check as payment:
4-13 (1) the amount of any fee for processing the credit
4-14 card invoice or check charged to the governmental entity; and
4-15 (2) a fee to cover the governmental entity's
4-16 administrative costs in an amount not to exceed:
4-17 (A) the amount the governmental entity is
4-18 specifically authorized to add for this purpose under other law; or
4-19 (B) $50, if other law does not specifically
4-20 prescribe the amount the governmental entity may add for this
4-21 purpose.
4-22 SECTION 2. The heading of Subtitle F, Title 10, Government
4-23 Code, is amended to read as follows:
4-24 SUBTITLE F. STATE AND LOCAL CONTRACTS, PAYMENTS, AND FUND
4-25 MANAGEMENT
4-26 SECTION 3. (a) This Act takes effect September 1, 1999.
5-1 (b) This Act applies only to the method of a payment made on
5-2 or after its effective date. For purposes of Subsection (a),
5-3 Section 2259.003, Government Code, as added by this Act, a payment
5-4 made before the effective date of this Act may be considered if the
5-5 payment was made within the period prescribed by that section.
5-6 SECTION 4. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended.