HBA-TYH H.B. 3562 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3562 By: Luna, Vilma State Affairs 4/7/1999 Introduced BACKGROUND AND PURPOSE Under current law, a state officer or employee is directly responsible for all charges on state-issued credit cards. The officer or employee must apply to the agency for reimbursement, at legislatively allowed rates, for reimbursable expenses incurred in the conduct of state business. It was assumed that agencies would require credit card companies to mail bills to the officer or employee's agency accounts payable section instead of to the individual's home address. This could reduce an officer and employee's propensity to make unauthorized charges because the accounts payable section would see all bills and recognize unauthorized charges. H.B. 3562 requires the state to pay reimbursable expenses directly to the credit card company, and provides that the officer or employee would be directly responsible only for charges not reimbursable by the state. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the comptroller and the General Services Commission in SECTION 1 (Section 2171.052, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2171.052, Government Code, by adding Subsections (d) and (e), as follows: (d) Provides that a contract between the General Services Commission (commission) and a credit card company must provide that: (1) amounts charged on credit cards issued under the contract to a state officer or employee for expenses that are reimbursable to the state officer or employee by the state will be paid directly by the state to the credit card company; and (2) the state officer or employee is directly responsible to the credit card company only for payment of charges that are not reimbursable to the officer or employee by the state. (e) Authorizes the comptroller and the commission to adopt rules for the efficient administration of the contract requirements imposed and, by rule, to jointly adopt a memorandum of understanding for the efficient administration of those requirements. SECTION 2. Provides that the changes in law made by this Act apply only to a contract between the General Services Commission and a credit card company under Section 2171.052 (Contracts With Providers of Travel Services), Government Code, that is entered into on or after the effective date of this Act, except that if the credit card company agrees to amend an existing contract to reflect the requirements imposed on new contracts by this Act, the rules of the commission and the comptroller that implement the requirements apply also to the administration of the amended contract. SECTION 3. Provides that the changes in law made by this Act do not: (1) authorize a state officer or employee to use a credit card issued to the officer or employee through the state under Section 2171.052, Government Code, to charge goods or services that are not connected to the officer's or employee's performance of state business; or (2) affect the extent, if any, to which a state officer or employee may use the credit card to charge goods or services that are connected to the officer's or employee's performance of state business but the expense of which is not reimbursable to the officer or employee by the state. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.