LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                                May 7, 1999
  
  
          TO:  Honorable Steven Wolens, Chair, House Committee on State
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1926 by Carter (relating to the provision of certain
               state agency services to the public through the use of
               electronic commerce and to the making or receipt of
               payment by a state governmental entity), Committee
               Report 1st House, Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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FISCAL ANALYSIS

The bill would amend the Government Code with reference to state agencies
engaging in electronic commerce.  Payments could be accepted by credit
or debit card, ro electronic funds transfer.  Agencies would be allowed
to deduct transaction fees incurred when accepting credit cards from
amounts collected.

METHODOLOGY

The Comptroller of Public Accounts has stated that since the bill's
language is permissive, the fiscal impact cannot be determined.  The
degree to which state agencies might participate is unknown, as is the
effect on state revenue collections.

The Comptroller further states that if the bill's provisions were applied
to tax collections, there would be a negative effect on state revenues.
The Comptroller's staff indicate that the office currently collects
approximately $48.7 billion per biennium in taxes and offers the
following example of possible revenue effects.  If 5 percent of taxes
were paid by credit card, $2.4 billion in state revenues could become
subject to a transactions charge.  A 2 percent transaction charge would
result in a $48.7 million biennial loss in state revenues.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   313   Department of Information Resources, 303
                   General Services Commission, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, BB, ML