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. 2-58 * * * * *