80R11276 JRD-F
 
  By: Flynn, Hardcastle H.B. No. 1929
 
Substitute the following for H.B. No. 1929:
 
  By:  Bonnen C.S.H.B. No. 1929
 
A BILL TO BE ENTITLED
AN ACT
relating to the comptroller's electronic funds transfer system and
the use of electronic paycards.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 403.016, Government Code, is amended by
amending Subsections (b), (c), and (j) and adding Subsection (k) to
read as follows:
       (b)  The comptroller shall use the electronic funds transfer
system to pay an employee's net state salary and travel expense
reimbursements unless[:
             [(1)] the employee agrees instead to accept payment on
an electronic paycard [does not hold a classified position under
the state's position classification plan and the employee's gross
state salary is less than the gross state salary for a position
classified to group 8, step 1, of the state position classification
plan; or
             [(2)  the employee holds a classified position under
the state's position classification plan that is classified below
group 8].
       (c)  The comptroller shall use the electronic funds transfer
system to make:
             (1)  payments of more than $100 to annuitants by the
Employees Retirement System of Texas or the Teacher Retirement
System of Texas under either system's administrative jurisdiction,
or to annuitants paid by the Texas Emergency Services Retirement
System or by another retirement system whose annuitants are paid
from the state treasury or from a fund with the comptroller, unless
the annuitant agrees instead to accept payment on an electronic
paycard;
             (2)  recurring payments to municipalities, counties,
political subdivisions, special districts, and other governmental
entities of this state; and
             (3)  payments to vendors who choose to receive payment
through the electronic funds transfer system rather than by
warrant.
       (j)  The comptroller shall adopt rules to administer this
section[, including rules relating to the notifications that may be
provided to the comptroller under Subsection (h)].
       (k)  The comptroller may make a payment in any amount to a
state employee under Subsection (b) or to an annuitant under
Subsection (c)(1) on an electronic paycard if the employee or
annuitant agrees to accept payment by that method.
       SECTION 2.  Subchapter B, Chapter 403, Government Code, is
amended by adding Section 403.0161 to read as follows:
       Sec. 403.0161.  CONTRACTS FOR ELECTRONIC PAYCARD SERVICES.
The comptroller shall contract with one or more vendors for the
provision of electronic paycard services.
       SECTION 3.  Section 659.084, Government Code, is amended to
read as follows:
       Sec. 659.084.  ELECTRONIC FUNDS TRANSFER. Salaries for
state officers and employees paid once a month shall be paid through
electronic funds transfer under Section 403.016 unless paid on an
electronic paycard [warrant] as permitted under that section.
       SECTION 4.  Section 403.016(h), Government Code, is
repealed.
       SECTION 5.  This Act takes effect January 1, 2008.