AN ACT
 1-1     relating to the payment of ad valorem taxes by electronic funds
 1-2     transfer.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection (a), Section 31.06, Tax Code, is
 1-5     amended to read as follows:
 1-6           (a)  Except as provided by Section 31.061, taxes are payable
 1-7     only in currency of the United States.  However, a collector may
 1-8     accept a check or money order in payment of taxes, and may accept
 1-9     payment by credit card or electronic funds transfer.  A collector
1-10     and a person may enter into an agreement under which the person
1-11     pays taxes by electronic funds transfer.  The agreement must:
1-12                 (1)  be in writing;
1-13                 (2)  be signed by the collector and the person; and
1-14                 (3)  specify the means or format of payment by
1-15     electronic funds transfer.
1-16           SECTION 2.  Section 33.011, Tax Code, is amended by adding
1-17     Subsection (h) to read as follows:
1-18           (h)  The governing body of a taxing unit shall waive
1-19     penalties and interest on a delinquent tax if:
1-20                 (1)  the tax is payable by electronic funds transfer
1-21     under an agreement entered into under Section 31.06(a); and
1-22                 (2)  the taxpayer submits evidence sufficient to show
1-23     that:
1-24                       (A)  the taxpayer attempted to pay the tax by
 2-1     electronic funds transfer in the proper manner before the
 2-2     delinquency date;
 2-3                       (B)  the taxpayer's failure to pay the tax before
 2-4     the delinquency date was caused by an error in the transmission of
 2-5     the funds; and
 2-6                       (C)  the tax was properly paid by electronic
 2-7     funds transfer or otherwise not later than the 21st day after the
 2-8     date the taxpayer knew or should have known of the delinquency.
 2-9           SECTION 3.  The importance of this legislation and the
2-10     crowded condition of the calendars in both houses create an
2-11     emergency and an imperative public necessity that the
2-12     constitutional rule requiring bills to be read on three several
2-13     days in each house be suspended, and this rule is hereby suspended,
2-14     and that this Act take effect and be in force from and after its
2-15     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 779 passed the Senate on
         April 7, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 28, 1999, by the following vote:
         Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 779 passed the House, with
         amendment, on May 26, 1999, by the following vote:  Yeas 144,
         Nays 0, two present not voting.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor