Texas Senate Bill SB474

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/29/09
• Voted on by Senate: 5/4/09
• Out of House Committee: 5/14/09

Caption

Relating to the comptroller of public accounts' use of electronic paycards to make certain payments.

Impact

With the introduction of SB474, the legislation aims to modernize and streamline payment mechanisms used by the government, potentially increasing efficiency and security in transactions. The bill also stipulates that the comptroller must contract for electronic paycard services through a competitive bidding process, ensuring that vendors are financially secure and capable of providing reliable customer service. This shift toward electronic paycards is expected to facilitate quick access to funds for state employees and retirees, thereby improving the overall payment experience.

Summary

Senate Bill 474 (SB474) addresses the use of electronic paycards by the Texas Comptroller's office for disbursing payments to state employees and certain annuitants. The bill amends existing law, mandating that the comptroller utilize an electronic funds transfer system for paying state employees their net salaries and travel reimbursements, unless alternative payment through an electronic paycard is agreed upon. Importantly, the bill clarifies that payments in excess of $100 to retirees from state retirement systems will also default to electronic funds transfer, with provisions for paycard payments available upon agreement.

Contention

One notable point of contention surrounding SB474 centers on the implications of using electronic paycards for payments, particularly for employees and vulnerable populations like retirees. Critics may argue that reliance on electronic paycards could create accessibility issues for individuals who are less tech-savvy or have limited access to electronic banking facilities. There is also concern about the potential for hidden fees associated with paycard usage, which could disproportionately affect low-income recipients. Supporters of the bill counter that the benefits of efficiency and immediate access to funds outweigh these concerns, promoting a forward-thinking adaptation of payment systems.