HBA-JRA, GUM H.B. 2429 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2429
By: King, Tracy
Ways & Means
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, vendors doing business with the State of
Texas could not choose the method of payment by the comptroller of public
accounts (comptroller).  Unless a vendor did not have an account with a
financial institution, they had to be paid through the direct deposit
system.  This has caused problems for some small businesses that do not
have accounting systems sophisticated enough for this method of payment.
H.B. 2429 allows such a vendor to choose either an electronic transfer or a
warrant as the method of payment by the comptroller. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 403.016(c) and (h), Government Code, as follows:

(c)  Includes payments to vendors who choose to receive payment through the
electronic funds transfer system rather than by warrant among the payments
for which the comptroller of public accounts (comptroller) is required to
use the electronic funds transfer system. 

(h)  Includes a person's notification to the comptroller of the person's
option to receive the payment by warrant among the cases in which the
comptroller is required to pay by issue of a warrant. Makes a conforming
change. 

SECTION 2.  Repealer:  Section 403.016(k) (providing that the requirement
of the comptroller to issue a warrant to pay a person who notifies the
comptroller that receiving the payment by electronic funds transfer would
be more costly and be impractical than receiving the payment by a warrant,
does not apply to a vendor), Government Code. 

SECTION 3.  Emergency clause.
  Effective date: upon passage.