BILL ANALYSIS
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Senate Research Center |
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AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Cities and other local governments that make contributions to the Texas Emergency Services Retirement System are currently only authorized by statute to pay the agency by electronic funds transfer ("EFT") or paper check. Municipalities would like to pay by automated clearinghouse ("ACH") or wire transfer, but by current statute, the agency cannot accept those payment methods. The limitation on electronic payment options results in inefficiency at the state and local level because it results in the need to process paper checks for system contributions.
H.B. 1707 amends Section 865.014(c), Government Code, to expand allowable electronic payment options to include ACH and wire transfer in the list of available payment methods.
H.B. 1707 amends current law relating to the methods by which a political subdivision may submit contributions to the Texas Emergency Services Retirement System.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 865.014(c), Government Code, to require that contributions required by this section be submitted by electronic funds transfer, by wire transfer, or as an automated clearinghouse withdrawal (ACH debit) unless the executive director grants an exception based on the difficulty of a participating department's use of those payment methods, rather than of a participating department's use of that payment method.
SECTION 2. Effective date: September 1, 2015.