81R529 JRD-F
 
  By: Estes S.B. No. 474
 
 
 
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.  A contract under this
  section must be by competitive bid.  The comptroller shall specify
  the qualifications for bidders, which must include requirements
  that the entity that issues the paycard must:
               (1)  be federally insured or possess sufficient
  financial resources to ensure protection of payees; and
               (2)  demonstrate adequate 24-hour customer service to
  ensure that all payees are able to reasonably access their funds
  worldwide at any time.
         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, 2010.