H.B. 782 78(R)    BILL ANALYSIS


H.B. 782
By: Grusendorf
Ways & Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Involving the private sector in supporting public education could help
school districts generate extra revenue. The city of Huntington Beach,
California is using an innovative approach to encourage such involvement
by contracting with a marketing consultant and bank to issue credit and
debit cards to private citizens who designate their rebates from using the
cards to the city for parks, libraries, and other services. The city will
select a bank to issue a so called "affinity card" that gives monetary
benefits to the cardholder like merchant discounts and rebates to the
city.  House Bill 782 provides the comptroller of public accounts
authority to contract with private banks and marketing firms to issue
credit and debit cards to benefit public schools. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

House Bill 782 allows the comptroller of public accounts to enter into
contracts with credit or debit card issuers in which the issuers would
agree to remit sums of money based on the use of credit or debit cards to
the comptroller for distribution to public schools designated as
recipients by cardholders. The bill also grants authority to the
comptroller to approve the design of cards, the advertising of the
program, and negotiate the financial terms of the program. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.