By: Miller of Comal H.B. No. 3263 A BILL TO BE ENTITLED AN ACT relating to the payment of fees and other costs by credit card, debit card or electronic means in municipalities and counties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 132.001, LOCAL GOVERNMENT CODE, is hereby amended to read as follows: Sec. 132.001. DEFINITIONS. In this chapter: (1) "Credit card" means a card, plate, or similar device used to make purchases on credit or to borrow money. (2) "Debit card" means a card, plate or similar device that provides the holder electronic access to the holder's bank account(s) at a financial institution. (3) "Payment by electronic means" means payment by telephone or computer but does not include payment in person or by mail. SECTION 2. Section 132.002, LOCAL GOVERNMENT CODE, is hereby amended to read as follows: Sec. 132.002. PAYMENT OF FEES OR COSTS BY CREDIT CARD, DEBIT CARD OR ELECTRONIC MEANS. (a) The commissioners court of a county may authorize a county or precinct officer who collects fees, fines, court costs, or other charges on behalf of the county or the state to accept payment by credit card or debit card of a fee, fine, court costs, or other charge. The commissioners court may also authorize a county or precinct officer to collect and retain a fee for processing the payment by credit card or debit card. (b) The governing body of a municipality may authorize a municipal official who collects fees, fines, court costs, or other charges to: (1) accept payment by credit card or debit card of a fee, fine, court cost, or other charge; and (2) collect and retain a fee for processing the payment by credit card or debit card. (c) The governing body of a municipality may authorize the acceptance of payment by credit card or debit card without requiring collection of a fee. (d) The commissioners court may authorize a county or precinct officer who collects fees, fines, court costs, or other charges on behalf of the county or the state to accept payment by electronic means of a fee, fine, court costs, or other charge. The commissioners court may also authorize a county or precinct officer to collect and retain a handling fee for processing the payment by electronic means. (e) A commissioners court may authorize the acceptance of payment by credit card, debit card or by electronic means without requiring collection of a fee. (f) The director of a community supervision and corrections department, with the approval of the judges described by Section 76.002, Government Code, may authorize a community supervision official who collects fees, fines, court costs, and other charges to: (1) accept payment by debit card or credit card or electronic means of a fee, fine, court cost, or other charge; and (2) collect a fee for processing the payment by debit card or credit card or electronic means. SECTION 3. Section 132.003, LOCAL GOVERNMENT CODE, is hereby amended to read as follows: Sec. 132.003. PROCESSING OR HANDLING FEE. (a) The commissioners court shall set a processing fee in an amount that is reasonably related to the expense incurred by the county or precinct officer in processing the payment by credit card, debit card or electronic means. However, the court may not set the processing fee in an amount that exceeds five percent of the amount of the fee, court cost, or other charge being paid. (b) The governing body of a municipality shall set the processing fee in an amount that is reasonably related to the expense incurred by the municipal official in processing the payment by credit card, debit card or electronic means. However, the governing body may not set the processing fee in an amount that exceeds five percent of the amount of the fee, fine, court cost, or other charge being paid. (c) If the commissioners court authorizes collection of a handling fee under Section 132.002(d), the fee shall be set: (1) at a flat rate that does not exceed $5 for each payment transaction; or (2) at a rate that is reasonably related to the expense incurred by the county or precinct officer in processing a payment by electronic means and that does not exceed five percent of the amount of the fee, court cost, or other charge being paid. (d) In addition to the fee set under Subsection (a), the commissioners court of a county may authorize a county or precinct officer to collect on behalf of the county from a person making payment by credit card, debit card or electronic means an amount equal to the amount of any transaction fee charged to the county by a vendor providing services in connection with payments made by credit card, debit card or electronic means. The limitation prescribed by Subsection (a) on the amount of a fee does not apply to a fee collected under this subsection. (e) In addition to the fee set under Subsection (b), the governing body of a municipality may authorize a municipal official to collect on behalf of the municipality from a person making payment by credit card, debit card or electronic means an amount equal to the amount of any transaction fee charged to the municipality by a vendor providing services in connection with payments made by credit card, debit card or electronic means. The limitation prescribed by Subsection (b) on the amount of a fee does not apply to a fee collected under this subsection. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.