HBA-CMT C.S.H.B. 2297 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2297
By: Thompson
Urban Affairs
3/26/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Many cities may want to develop websites that would permit citizens to
conduct certain city business activities over the Internet, including
payment of municipal court fines.  The cost of designing and implementing
the program would be recovered through user fees that citizens would pay in
addition to actual fines.  However, a recent court decision has raised
concerns regarding the legality of such fees.  It has also been found in
several other court cases that such a fee is unlawful as long as there is
no authorization by law for the fee.  C.S.H.B. 2297 provides that the
governing body of a municipality may authorize a municipal official who
collects fees, fines, court costs or other charges on behalf of the
municipality or the state to accept payment by electronic means, and may
authorize a municipal official to collect a handling fee for processing the
payment by electronic means. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 2297 amends the Local Government Code to provide that the
governing body of a municipality may authorize a municipal official who
collects fees, fines, court costs or other charges on behalf of the
municipality or the state to accept payment by electronic means that is
approved by the governing body in which the municipality receives payment
through the Internet.  The governing body may also authorize a municipal
official to process the payment by electronic means with or without
collecting a processing fee.  

The bill authorizes the municipal official collecting a processing  fee to
either deposit the fee in the general fund of the municipality or pay or
cause the fee to be paid to the vendor furnishing or facilitating the
electronic payment services pursuant to a contract with the municipality.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2297 modifies the original by providing that the bill takes effect
on passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001 rather than taking effect on the 91st day
after adjournment.  The substitute also provides that the bill has no
effect if Senate Bill 201, Acts of the 77th Legislature, is enacted and
becomes law.