34 TAC §§17.1 - 17.3
The Comptroller of Public Accounts proposes new §§17.1,
17.2, and 17.3, concerning the acceptance of credit, charge and debit cards
for the payment of fees, taxes and other charges assessed by a state agency.
The purpose of these rules is to provide a uniform procedure through which
the comptroller may authorize a state agency to accept credit, charge and
debit cards if the comptroller determines that the best interest of the state
will be promoted.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the rules will be in effect, there will be no significant
fiscal impact on the state or units of local government.
Mr. LeBas also has determined that for each year of the first five years
the rules are in effect, the public benefit anticipated as a result of enforcing
the rule will be in broadening the payment options available to taxpayers
in transactions with state agencies. The new rules would have no fiscal implications
to small businesses. There is no significant anticipated economic cost to
individuals who are required to comply with the proposed rules.
Comments on the proposal may be submitted to Robert Coalter, Assistant
Director, Treasury Operations, P.O. Box 12608, Austin, Texas 78711.
This new section is proposed under Government Code, §403.023,
which provides that the comptroller may adopt rules relating to the acceptance
of credit, charge and debit cards for the payment of fees, taxes and other
charges assessed by a state agency.
The new sections implement Government Code, §403.023.
§17.1.Intent, Purpose, and Definitions.
(a)
Intent. The comptroller has been granted authority by Government
Code, §403.023(a)(1), to authorize a state agency to accept credit, charge
and debit cards for the payment of fees, taxes and other charges assessed
by the state agency if the comptroller determines that the best interest of
the state will be promoted.
(b)
Purpose.
(1)
The purpose of these rules is to provide a uniform procedure
through which the comptroller may authorize a state agency to accept credit,
charge and debit cards for the payment of fees, taxes and other charges assessed
by the state agency.
(2)
These rules do not apply to a particular state agency's
authority to accept credit, charge and debit cards if:
(A)
another law specifically authorizes, requires, prohibits,
or otherwise regulates the acceptance of credit, charge and debit cards;
(B)
acceptance of credit or charge cards would affect a contract
that the state agency has entered into that is in effect on September 1, 1993;
or
(C)
acceptance of charge or debit cards would affect a contract
that the state agency has entered into that is in effect on September 1, 1999.
(3)
The comptroller may authorize a state agency to contract
directly with vendors or with the comptroller. A state agency may not contract
directly with vendors without prior approval of the comptroller.
(4)
The comptroller will act as an information resource to
state agencies authorized by the comptroller to accept credit, charge and
debit cards.
(c)
Definitions. The following words and terms, when used in
this chapter, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
Chargeback - The return of a transaction when a consumer,
bank, or vendor determines that a transaction is not valid resulting in the
vendor's debit of the comptroller's designated account for the amount in question.
(2)
Coding block - The state agency's USAS information that
will be submitted with each transaction. This information should consist of
a transaction code, fund number, program cost account and comptroller object
or state agency object.
(3)
Merchant number - The unique identification number(s) assigned
by the vendor to each state agency or each state agency location, if requested
by the state agency.
(4)
State agency - The meaning assigned by Government Code, §403.023(e).
(5)
State treasury - The meaning assigned by Government Code, §404.001(8).
(6)
USAS - The state's uniform statewide accounting system.
(7)
Vendor - A company or financial institution that provides
a variety of merchant services including credit, charge and debit card billing,
reporting, customer service, authorization and settlement services.
§17.2.Agency Contracts with Vendors or the Comptroller.
(a)
Administration by comptroller. A state agency interested
in accepting credit, charge and debit cards will contact the comptroller's
office. The comptroller's office will determine whether it is in the best
interest of the state for the state agency to accept credit, charge and debit
cards and whether the state agency should contract with the comptroller or
with a selected vendor. The comptroller will contract with selected vendors
to provide credit, charge and debit card services to state agencies that contract
with the comptroller.
(b)
State agency contracts with comptroller. A state agency
will enter into an interagency contract with the comptroller to obtain access
to the services provided by selected vendors pursuant to terms established
by the comptroller in the interagency contract.
(c)
State agency contracts with vendors. In lieu of contracting
with the comptroller, a state agency, with the comptroller's approval, may
directly contract with vendors, provided the following criteria are met:
(1)
The state agency shall provide the comptroller's office
with a draft copy of its Request for Proposal prior to issuance and a draft
copy of its vendor contract prior to execution. The comptroller shall review
the drafts for compliance with these rules, state law, and other comptroller
processes relevant to the deposit of funds into the state treasury. The comptroller
will notify the state agency whether the drafts are accepted or rejected.
(2)
The state agency will provide the comptroller's office
with the merchant numbers assigned and the USAS coding block information at
least two weeks prior to the acceptance of the first credit, charge or debit
card transaction.
(3)
The state agency must provide in its contract with the
vendor that the vendor will credit the comptroller's designated bank account
for the total amount of credit, charge and debit card sales, less any credits
issued. The comptroller will enter the deposit into USAS, crediting the appropriate
coding block on the same day the vendor credits the comptroller's designated
bank account.
(4)
In order to insure the accuracy of information and credit,
charge and debit card payments transmitted to the comptroller by state agencies,
the comptroller shall determine the method by which the information and credit,
charge and debit card payments will be transmitted by state agencies.
(5)
The state agency's contract with the vendor must further
provide that:
(A)
the vendor shall debit the comptroller's designated account
for chargebacks;
(B)
the state agency will have sole responsibility for resolving
chargebacks; and
(C)
the vendor may debit the comptroller's designated account
for the fees or the vendor may invoice the state agency directly for the fees.
(6)
The state agency shall be responsible for reviewing the
fees for validity. The comptroller will enter the fee charges into USAS.
(7)
The state agency will have sole responsibility for the
security of the information captured in each transaction.
(8)
The state agency will ensure that the vendor:
(A)
makes funds available on a timeframe that is equal to or
better than what is provided in the comptroller's contract with selected vendors;
and
(B)
complies with state law and all comptroller policies with
respect to deposits into the state treasury.
§17.3.Agency Non-Compliance.
The comptroller may suspend or terminate a state agency's authority
to accept payments by credit, charge and debit card if the comptroller determines
that the state agency or an officer or employee of the state agency has violated
this chapter or Government Code, §403.023.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on February 9, 2001.
TRD-200100861
Martin Cherry
Deputy General Counsel for Tax Policy and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: March 25, 2001
For further information, please call: (512) 463-3699