LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 1, 2013 TO: Honorable Judith Zaffirini, Chair, Senate Committee on Government Organization FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB806 by Carona (Relating to the use of a credit or charge card by a state agency to make certain purchases.), As Introduced The bill would have an indeterminate fiscal cost to the state, but those costs are expected to be insignificant depending on authorized determinations made by the Comptroller of Public Accounts. The bill would amend the Government Code to require state agencies to use credit or charge cards for all purchases, including travel services, and prohibit the use of personal credit or charge cards by employees unless the Comptroller of Public Accounts determines that another method of payment is more advantageous to the state. The bill would take effect immediately upon enactment if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013. The Comptroller of Public Accounts reports that there would be no cost to implement the provisions of the bill. However, the University of Texas System reports there would be increased costs associated with accepting credit cards as payment of 2 percent to 3 percent for transaction fees. UT estimates that the bill would shift $100 million incoming payments to credit card payments and result in a $2 million cost per year. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts, 720 The University of Texas System Administration LBB Staff: UP, KJo, JI, YD, LCO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 1, 2013
TO: Honorable Judith Zaffirini, Chair, Senate Committee on Government Organization FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB806 by Carona (Relating to the use of a credit or charge card by a state agency to make certain purchases.), As Introduced
TO: Honorable Judith Zaffirini, Chair, Senate Committee on Government Organization
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB806 by Carona (Relating to the use of a credit or charge card by a state agency to make certain purchases.), As Introduced
Honorable Judith Zaffirini, Chair, Senate Committee on Government Organization
Honorable Judith Zaffirini, Chair, Senate Committee on Government Organization
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB806 by Carona (Relating to the use of a credit or charge card by a state agency to make certain purchases.), As Introduced
SB806 by Carona (Relating to the use of a credit or charge card by a state agency to make certain purchases.), As Introduced
The bill would have an indeterminate fiscal cost to the state, but those costs are expected to be insignificant depending on authorized determinations made by the Comptroller of Public Accounts.
The bill would have an indeterminate fiscal cost to the state, but those costs are expected to be insignificant depending on authorized determinations made by the Comptroller of Public Accounts.
The bill would amend the Government Code to require state agencies to use credit or charge cards for all purchases, including travel services, and prohibit the use of personal credit or charge cards by employees unless the Comptroller of Public Accounts determines that another method of payment is more advantageous to the state. The bill would take effect immediately upon enactment if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013. The Comptroller of Public Accounts reports that there would be no cost to implement the provisions of the bill. However, the University of Texas System reports there would be increased costs associated with accepting credit cards as payment of 2 percent to 3 percent for transaction fees. UT estimates that the bill would shift $100 million incoming payments to credit card payments and result in a $2 million cost per year.
The bill would amend the Government Code to require state agencies to use credit or charge cards for all purchases, including travel services, and prohibit the use of personal credit or charge cards by employees unless the Comptroller of Public Accounts determines that another method of payment is more advantageous to the state. The bill would take effect immediately upon enactment if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2013.
The Comptroller of Public Accounts reports that there would be no cost to implement the provisions of the bill. However, the University of Texas System reports there would be increased costs associated with accepting credit cards as payment of 2 percent to 3 percent for transaction fees. UT estimates that the bill would shift $100 million incoming payments to credit card payments and result in a $2 million cost per year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 720 The University of Texas System Administration
304 Comptroller of Public Accounts, 720 The University of Texas System Administration
LBB Staff: UP, KJo, JI, YD, LCO
UP, KJo, JI, YD, LCO