HBA-ALS, ALS H.B. 1926 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1926 By: Carter State Affairs 4/1/1999 Introduced BACKGROUND AND PURPOSE Many state agencies provide services to the general public for which the agency charges a fee. Many of these services could be provided and fees collected online, however, there is no current method for collecting these fees. In addition, many credit and debit card companies charge a transaction fee, forcing an agency to choose between charging the fee to the buyer or paying the fee from its proceeds, both of which violate current statutory provisions. H.B. 1926 allows the Texas Comptroller of Public Accounts to adopt rules relating to the acceptances of debit cards, in addition to credit cards, for payment of fees, taxes, and charges to state agencies and for purchases by state agencies. This bill allows a state agency to use electronic means to provide a service to the public which involves the exchange of information and which may involve the exchange of money, such as the routine renewal of a license or providing copies of documents. This bill allows an agency engaging in electronic commerce to accept payment by a debit or credit card and to waive any transaction fee for use of electronic means. This bill establishes that such exchanges of information and payments are confidential and are not public information. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that the rulemaking authority previously delegated to the Texas Comptroller of Public Accounts is modified in SECTION 1 (Section 403.023, Government Code) and to Texas Department of Economic Development in SECTION 2 (Section 2054.121, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 403.023, Government Code, as follows: Sec. 403.023. New Title: CREDIT AND DEBIT CARDS. Adds "and debit" to existing title. (a) Authorizes the Texas Comptroller of Public Accounts (comptroller) to adopt rules relating to the acceptance of debit cards, in addition to credit cards, for payment of fees, taxes, and charges assessed by state agencies. (b) Deletes language authorizing the comptroller to adopt rules authorizing the General Services Commission (commission) to contract with one or more credit card issuers on behalf of state agencies. Makes conforming changes (c) Prohibits the comptroller from adopting rules about a particular state agency's acceptance of debit cards that would affect a contract that the agency has entered into that is in effect on September 1, 1999. Makes a nonsubstantive change. (d) Makes a conforming change. (e) Makes no change. SECTION 2. Amends Subchapter F, Chapter 2054, Government Code, by adding Section 2054.121, as follows: Sec. 2054.121. ELECTRONIC COMMERCE WITH LICENSEES AND MEMBERS OF PUBLIC. (a) Provides that this section applies to the use of electronic commerce by a state agency to provide to the general public or to persons who are regulated by the agency, services involving the exchange of information and receipt of payment. Provides examples of services to which this section applies. (b) Provides that Chapter 2177 (applying to the use of electronic commerce by a state agency to acquire goods and services) is not affected by this section. Provides that this section does not apply to a state agency's use of the Internet or an electronic bulletin board to receive electronic mail, except to the extent that it is part of an electronic commerce transaction or to post generally accessible information that may be retrieved without charge. (c) Requires the Texas Department of Economic Development (department) and the commission to cooperate to qualify for catalogue purchasing of automated information systems under Subchapter B, Chapter 2157 (Purchasing: Purchase of Automated Information systems), that are suitable for conducting electronic commerce transactions between a state agency and persons who are regulated by the agency or members of the general public. Requires the commission, before qualifying an electronic commerce system for the catalogue, to consult the department. Requires the department to determine whether the system is generally suitable for the task. Requires the commission to determine whether the security features of the system are sufficient to protect the integrity and privacy of exchanged information, particularly any information exchanged as part of making a payment. (d) Authorizes a state agency engaging in an electronic commerce transaction to accept payment by a debit or credit card and to designate payment by electronic means as the preferred method of payment. Authorizes the state agency to waive any transaction fee for use of electronic means and accept the amount set by statute or rule for the good or service. Specifies the type of information that is confidential and is not public information under Chapter 552 (Public Information), if it is collected by or for a state agency, the agency owns or has a right of access to the information, and the information relates to a payment by debit or credit card under this section, (e) Provides that the department's rules regarding digital signatures apply to an electronic commerce transaction subject to this section. (f) Provides that a state agency is not required to provide services through the use of electronic commerce to members of the general public or to persons who are regulated by the agency, but requires the agency to comply with this section if the agency does provide such services and if providing those services involves the exchange of information and may involve the receipt of payment. (h) Requires a state agency that acquires an automated information system for the purpose of engaging in electronic commerce to acquire a system approved by the department and the commission and acquire the system by using the specified catalogue purchase method and obtain a waiver of the requirements from the department after demonstrating to the department that the agency will more effectively or efficiently engage in electronic commerce by using another system. SECTION 2. Amends, Section 2155.385, Government Code, to delete language authorizing the commission to contract with one or more credit card issuers for state agencies to use credit cards to pay for purchases only if authorized by rule adopted by the comptroller. Authorizes the commission to contract with one or more credit card issuers to enable state agencies to use credit cards to pay for purchases and to handle electronic payments received by the agency for fees, taxes, and sales of goods or services produced by the agency. Authorizes the display of the issuers' logos on agency web sites or other electronic presence as part of the contract. Prohibits the commission from entering into a contract that conflicts with the comptroller's rules under Section 403.023 (Credit and Debit Cards). SECTION 3.Effective date: September 1, 1999. SECTION 4.Emergency clause.