1-1     By:  Nixon                                             S.B. No. 543
 1-2           (In the Senate - Filed February 16, 1999; February 17, 1999,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     May 10, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; May 10, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 543                    By:  Nixon
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to a payment to a governmental entity by credit card or
1-11     check.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subtitle F, Title 10, Government Code, is amended
1-14     by adding Chapter 2259 to read as follows:
1-15             CHAPTER 2259.  PAYMENTS MADE TO GOVERNMENTAL ENTITY
1-16           Sec. 2259.001.  DEFINITIONS.  In this chapter:
1-17                 (1)  "Bank" means a person engaged in the business of
1-18     banking, including a savings bank, savings and loan association,
1-19     credit union, or trust company.
1-20                 (2)  "Cashier's check" means a draft with respect to
1-21     which the drawer and drawee are the same bank or branches of the
1-22     same bank.
1-23                 (3)  "Check" means a draft that is payable on demand
1-24     and drawn on a bank.
1-25                 (4)  "Credit card invoice" means the document
1-26     authorized by the holder of a credit card to be used to provide
1-27     payment of an amount from the holder's credit card account.
1-28                 (5)  "Drawee" means a person ordered in a check to make
1-29     payment.
1-30                 (6)  "Drawer" means a person who signs or is identified
1-31     in a check as the person ordering payment.
1-32                 (7)  "Goods" includes supplies, materials, or
1-33     equipment.
1-34                 (8)  "Governmental entity" means a state agency or a
1-35     political subdivision of this state.
1-36                 (9)  "Political subdivision" means:
1-37                       (A)  a county, including a statutory or
1-38     constitutional county court, family district court, probate court,
1-39     or justice of the peace court;
1-40                       (B)  a municipality, including a municipal court;
1-41                       (C)  a public school district; or
1-42                       (D)  a special-purpose district or authority.
1-43                 (10)  "Service" includes gas and water utility service.
1-44                 (11)  "State agency" means:
1-45                       (A)  a board, commission, department, office, or
1-46     other agency in the executive branch of state government that is
1-47     created by the constitution or a statute of this state, including a
1-48     river authority or an institution of higher education as defined by
1-49     Section 61.003, Education Code;
1-50                       (B)  the legislature or a legislative agency; or
1-51                       (C)  the Supreme Court of Texas, the Court of
1-52     Criminal Appeals of Texas, a court of appeals, a state district
1-53     court, a state judicial agency, or the State Bar of Texas.
1-54           Sec. 2259.002.  METHOD OF PAYMENT.  Except as provided by
1-55     Section 2259.003, a governmental entity shall accept a check
1-56     payable to the governmental entity or a credit card invoice for the
1-57     payment of an amount of money owed to the governmental entity,
1-58     including a payment for taxes, goods, services, fees, fines, or
1-59     penalties, in the same manner the governmental entity accepts cash.
1-60           Sec. 2259.003.  EXCEPTIONS.  (a)  A governmental entity may
1-61     require that a payment from a person who, within the 18-month
1-62     period preceding the date of the payment, has remitted to any
1-63     office or department in the governmental entity a check that was
1-64     not duly paid or honored by the drawee must be made in cash or by a
 2-1     cashier's check or money order.
 2-2           (b)  A governmental entity is not required to accept a
 2-3     third-party check or an out-of-state check as payment.
 2-4           (c)  A governmental entity is not required to accept a credit
 2-5     card invoice or check as payment at a jail commissary or as payment
 2-6     from a person participating in a jail work release program.
 2-7           (d)  A credit card invoice or check accepted by a
 2-8     governmental entity as payment for a bail bond must be duly paid or
 2-9     honored by the credit card issuer or drawee before the prisoner may
2-10     be released on the bond.
2-11           Sec. 2259.004.  DATE OF PAYMENT.  Acceptance of a credit card
2-12     invoice or check by a governmental entity constitutes payment as of
2-13     the date of acceptance if the credit card invoice or check is duly
2-14     paid or honored by the credit card issuer or drawee.  A credit card
2-15     invoice or check that is not duly paid or honored by the credit
2-16     card issuer or drawee does not constitute a payment.
2-17           Sec. 2259.005.  NOTICE OF NONPAYMENT.  If a credit card
2-18     invoice or check accepted by a governmental entity as payment is
2-19     not duly paid or honored by the credit card issuer or drawee, the
2-20     governmental entity shall send written notice of the nonpayment and
2-21     of any restriction on the method of payment authorized by Section
2-22     2259.003 to the person who attempted payment by credit card invoice
2-23     or check at the address that is:
2-24                 (1)  listed in the files of the governmental entity; or
2-25                 (2)  written or printed on the credit card invoice or
2-26     check if the address of the person is not listed in the files of
2-27     the governmental entity.
2-28           Sec. 2259.006.  PROCESSING FEE FOR CREDIT CARD OR CHECK NOT
2-29     DULY PAID OR HONORED.  If a credit card invoice or check accepted
2-30     by a governmental entity as payment is not duly paid or honored by
2-31     the credit card issuer or drawee, the governmental entity may add
2-32     to the amount of payment due from the person who submitted the
2-33     credit card invoice or check as payment:
2-34                 (1)  the amount of any fee for processing the credit
2-35     card invoice or check charged to the governmental entity; and
2-36                 (2)  a fee to cover the governmental entity's
2-37     administrative costs in an amount not to exceed:
2-38                       (A)  the amount the governmental entity is
2-39     specifically authorized to add for this purpose under other law; or
2-40                       (B)  $50, if other law does not specifically
2-41     prescribe the amount the governmental entity may add for this
2-42     purpose.
2-43           SECTION 2.  The heading of Subtitle F, Title 10, Government
2-44     Code, is amended to read as follows:
2-45         SUBTITLE F.  STATE AND LOCAL CONTRACTS, PAYMENTS, AND FUND
2-46                                 MANAGEMENT
2-47           SECTION 3.  (a)  This Act takes effect September 1, 1999.
2-48           (b)  This Act applies only to the method of a payment made on
2-49     or after its effective date.  For purposes of Subsection (a),
2-50     Section 2259.003, Government Code, as added by this Act, a payment
2-51     made before the effective date of this Act may be considered if the
2-52     payment was made within the period prescribed by that section.
2-53           SECTION 4.  The importance of this legislation and the
2-54     crowded condition of the calendars in both houses create an
2-55     emergency and an imperative public necessity that the
2-56     constitutional rule requiring bills to be read on three several
2-57     days in each house be suspended, and this rule is hereby suspended.
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