SRC-TJG S.B. 966 78(R)BILL ANALYSIS


Senate Research CenterS.B. 966
By: Averitt
Finance
7/8/2003
Enrolled


DIGEST AND PURPOSE 

Currently, the comptroller of public accounts of the State of Texas
(comptroller) is not authorized to contract with banking and marketing
firms to issue credit or debit cards that would benefit public schools.
S.B. 966 allows the comptroller to enter into an agreement with a credit
of debit card issuer for the benefit of public schools.  Also, the credit
or debit card holder would be able to designate a particular school or
school district as the beneficiary.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends subchapter B, Chapter 403, Government Code, by adding
Section 403.0232, as follows: 

Sec. 403.0232.  CREDIT OR DEBIT CARD AGREEMENT BENEFITTING PUBLIC SCHOOLS.
(a) Defines "debit card." 

(b) Authorizes the comptroller of public accounts of the State of Texas
(comptroller) to enter an agreement with a credit or debit card issuer
under which the issuer is required to pay a certain amount of money to the
comptroller and the issuer is permitted to take certain actions. 

(c) Requires the from of any representation of benefit to public schools
and the design of credit or debit cards issued under the agreement to be
approved by the comptroller. 

(d) Requires to comptroller, in evaluating an issuer's proposal to enter
into an agreement under this section, to consider certain issues. 

(e) Requires the agreement between the comptroller and the issuer to allow
the cardholder to designate a particular school district as the recipient
of money generated by the cardholder's credit or debit card use and, to
the extent practicable, allow the cardholder to designate a particular
school.  Requires the comptroller to deposit money received under this
section to the credit of the foundation school fund, if the cardholder
does not designate a particular school district or school. 

SECTION 2.  Effective date: upon passage or September 1, 2003.