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78R1255 SLO-D


By:  Grusendorf                                                   H.B. No. 782



A BILL TO BE ENTITLED

AN ACT

relating to the comptroller entering into an agreement with a 
credit or debit card issuer for the benefit of public schools.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 403, Government Code, is 
amended by adding Section 403.0232 to read as follows:
	Sec. 403.0232.  CREDIT OR DEBIT CARD AGREEMENT BENEFITING 
PUBLIC SCHOOLS.  (a) In this section, "debit card" includes a 
prepaid debit card.
	(b)  The comptroller may enter an agreement with a credit or 
debit card issuer under which:
		(1)  the issuer is required to pay to the comptroller an 
amount of money based on the use of the credit or debit card by the 
cardholders;  and
		(2)  the issuer is permitted to:                                       
			(A)  represent to the public that use of the 
credit or debit card benefits public schools; and
			(B)  design credit or debit cards issued under the 
agreement to indicate that benefit.
	(c)  The form of any representation of benefit to public 
schools and the design of credit or debit cards issued under the 
agreement must be approved by the comptroller.
	(d)  In evaluating an issuer's proposal to enter into an 
agreement under this section, the comptroller shall consider:
		(1)  the financial stability of the issuer;                            
		(2)  whether the proposal offers the best available 
financial terms for the state and cardholders;
		(3)  the strength of the marketing effort to be made by 
the issuer and its marketing partners; and
		(4)  other issues the comptroller determines are 
appropriate.        
	(e)  The agreement between the comptroller and the issuer 
must 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 should to the extent practicable allow the 
cardholder to designate a particular school.  If the cardholder 
does not designate a particular school district or school, the 
comptroller shall deposit money received under this section to the 
credit of the foundation school fund.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.