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By:  Keffer of Eastland                                           H.B. No. 1935



A BILL TO BE ENTITLED

AN ACT

relating to recovery of district costs associated with payment of 
fees and charges by credit card.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 49, Water Code, is amended 
by adding Section 49.2121 to read as follows:
	Sec. 49.2121.  PAYMENT OF FEES AND CHARGES BY CREDIT CARD.  
(a)  In this section, "credit card" means a card, plate, or similar 
device used to make purchases on credit or to borrow money.
	(b)  The board may authorize the acceptance of payment by 
credit card for any fees and charges and may collect a fee for 
processing the payment by credit card.
	(c)  The board shall set a processing fee in an amount that is 
reasonably related to the expense incurred by the district in 
processing the payment by credit card, however, the fee may not 
exceed five percent of the amount of the fee or charge being paid.
	(d)  If for any reason, a payment by credit card is not 
honored by the credit card company on which the funds are drawn, the 
district may collect a service charge from the person who owes the 
fee or charge.  The service charge is in addition to the original 
fee or charge and is for the collection of that original amount.  
The amount of the service charge is the same amount as the fee 
charged for the collection of a check drawn on an account with 
insufficient funds.
	SECTION 2.  Section 339.001, Finance Code is amended to read 
as follows:     
	Sec. 339.001.  IMPOSITION OF SURCHARGE FOR USE OF CREDIT.                      
	(b)  This section does not apply to a state agency, county, 
local governmental entity, or other governmental entity, including 
a district governed by Chapter 49, Water Code, that accepts a credit 
card for the payment of fees, taxes, or other charges.
	SECTION 3.  This Act takes effect September 1, 2005.