34 TAC §17.2
The Comptroller of Public Accounts proposes a new §17.2,
concerning agency contracts with vendors or the comptroller. The purpose of
this rule 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 rule 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 rule is 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 rule 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 rule.
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 section implements Government Code, §403.023.
§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 criteria in paragraphs (1)-(8)
of this subsection 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.
(d)
Subject to any contracts between the state agency and any
vendors or subject to any interagency contracts between the state agency and
the comptroller, a state agency that accepts a credit, charge, or debit card
for the payment of fees, taxes, or other charges may assess a processing fee
for the payment of such fees, taxes, or other charges.
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 March 16, 2001.
TRD-200101560
Martin Cherry
Deputy General Counsel for Tax Policy and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: April 29, 2001
For further information, please call: (512) 463-3699