| 1 | 1 | | 81R529 JRD-F |
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| 2 | 2 | | By: Flynn H.B. No. 76 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the comptroller's electronic funds transfer system and |
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| 8 | 8 | | the use of electronic paycards. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 403.016, Government Code, is amended by |
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| 11 | 11 | | amending Subsections (b), (c), and (j) and adding Subsection (k) to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (b) The comptroller shall use the electronic funds transfer |
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| 14 | 14 | | system to pay an employee's net state salary and travel expense |
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| 15 | 15 | | reimbursements unless[: |
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| 16 | 16 | | [(1)] the employee agrees instead to accept payment on |
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| 17 | 17 | | an electronic paycard [does not hold a classified position under |
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| 18 | 18 | | the state's position classification plan and the employee's gross |
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| 19 | 19 | | state salary is less than the gross state salary for a position |
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| 20 | 20 | | classified to group 8, step 1, of the state position classification |
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| 21 | 21 | | plan; or |
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| 22 | 22 | | [(2) the employee holds a classified position under |
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| 23 | 23 | | the state's position classification plan that is classified below |
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| 24 | 24 | | group 8]. |
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| 25 | 25 | | (c) The comptroller shall use the electronic funds transfer |
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| 26 | 26 | | system to make: |
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| 27 | 27 | | (1) payments of more than $100 to annuitants by the |
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| 28 | 28 | | Employees Retirement System of Texas or the Teacher Retirement |
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| 29 | 29 | | System of Texas under either system's administrative jurisdiction, |
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| 30 | 30 | | or to annuitants paid by the Texas Emergency Services Retirement |
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| 31 | 31 | | System or by another retirement system whose annuitants are paid |
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| 32 | 32 | | from the state treasury or from a fund with the comptroller, unless |
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| 33 | 33 | | the annuitant agrees instead to accept payment on an electronic |
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| 34 | 34 | | paycard; |
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| 35 | 35 | | (2) recurring payments to municipalities, counties, |
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| 36 | 36 | | political subdivisions, special districts, and other governmental |
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| 37 | 37 | | entities of this state; and |
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| 38 | 38 | | (3) payments to vendors who choose to receive payment |
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| 39 | 39 | | through the electronic funds transfer system rather than by |
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| 40 | 40 | | warrant. |
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| 41 | 41 | | (j) The comptroller shall adopt rules to administer this |
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| 42 | 42 | | section[, including rules relating to the notifications that may be |
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| 43 | 43 | | provided to the comptroller under Subsection (h)]. |
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| 44 | 44 | | (k) The comptroller may make a payment in any amount to a |
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| 45 | 45 | | state employee under Subsection (b) or to an annuitant under |
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| 46 | 46 | | Subsection (c)(1) on an electronic paycard if the employee or |
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| 47 | 47 | | annuitant agrees to accept payment by that method. |
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| 48 | 48 | | SECTION 2. Subchapter B, Chapter 403, Government Code, is |
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| 49 | 49 | | amended by adding Section 403.0161 to read as follows: |
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| 50 | 50 | | Sec. 403.0161. CONTRACTS FOR ELECTRONIC PAYCARD SERVICES. |
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| 51 | 51 | | The comptroller shall contract with one or more vendors for the |
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| 52 | 52 | | provision of electronic paycard services. A contract under this |
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| 53 | 53 | | section must be by competitive bid. The comptroller shall specify |
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| 54 | 54 | | the qualifications for bidders, which must include requirements |
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| 55 | 55 | | that the entity that issues the paycard must: |
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| 56 | 56 | | (1) be federally insured or possess sufficient |
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| 57 | 57 | | financial resources to ensure protection of payees; and |
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| 58 | 58 | | (2) demonstrate adequate 24-hour customer service to |
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| 59 | 59 | | ensure that all payees are able to reasonably access their funds |
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| 60 | 60 | | worldwide at any time. |
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| 61 | 61 | | SECTION 3. Section 659.084, Government Code, is amended to |
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| 62 | 62 | | read as follows: |
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| 63 | 63 | | Sec. 659.084. ELECTRONIC FUNDS TRANSFER. Salaries for |
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| 64 | 64 | | state officers and employees paid once a month shall be paid through |
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| 65 | 65 | | electronic funds transfer under Section 403.016 unless paid on an |
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| 66 | 66 | | electronic paycard [warrant] as permitted under that section. |
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| 67 | 67 | | SECTION 4. Section 403.016(h), Government Code, is |
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| 68 | 68 | | repealed. |
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| 69 | 69 | | SECTION 5. This Act takes effect January 1, 2010. |
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