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


Office of House Bill AnalysisH.B. 2429
By: King, Tracy
Ways & Means
4/12/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, vendors doing business with the State of Texas cannot
choose their method of payment by the comptroller of public accounts
(comptroller).  Unless a vendor does not have an account with a financial
institution, they must 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 Section 403.016(c), Government Code, to include payments
to vendors who choose to use the electronic funds transfer rather than a
warrant system payment among the payments for which the Comptroller of
Public Accounts (comptroller) is required to use the electronic funds
transfer system. 

SECTION 2.  Amends Section 403.016(h), Government Code, to include 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. 

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