TO: | Honorable John Carona, Chair, Senate Committee on Business & Commerce |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB2962 by Harper-Brown (Relating to the use of a credit or charge card by certain state agencies to make certain purchases.), As Engrossed |
The bill would amend the Government Code to require state agencies in the executive branch of government to use credit or charge cards for all purchases, including travel services, and prohibit the use of personal credit or charge cards by employees unless the Comptroller of Public Accounts (CPA) determines that another method of payment would be more advantageous to the state. The bill would require state agencies that use a credit or charge card to make a purchase or to purchase travel services to post on the agency's internet website all purchases made with the credit or charge card, provided the agency is not required to post any confidential information. The bill would exempt institutions of higher education and the Office of the Governor. The bill would take effect immediately if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013.
The CPA reports that there would be no cost to implement the provisions of the bill. However, the Health and Human Services Commission (HHSC) anticipates an All Funds increased cost of $1.3 million for the biennium for ten additional FTEs to issue and monitor state issued credit cards to employees given the large number of employees who are required to travel to fulfill their work responsibilities. According to the Texas Department of Transportation, the requirement to post all purchases made with a credit or charge card on the agency's website would have an indeterminate fiscal cost. All other agencies noted that the cost of posting credit or charge card purchases to their agency website could be absorbed within existing agency resources.
Source Agencies: | 304 Comptroller of Public Accounts, 601 Department of Transportation, 696 Department of Criminal Justice, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 529 Health and Human Services Commission
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LBB Staff: | UP, RB, JI, YD, KJo, LCO
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