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.