Texas Register, Volume 38, Number 51, Pages 9155-9408, December 20, 2013 Page: 9,234
9155-9408 p. ; 28 cm.View a full description of this periodical.
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prove of personal or business checks as methods of payment
for 72 or 144 hour permits. Proposed simultaneous amend-
ments to 209.23(a)(5) add pre-payment of certain department
fees by escrow accounts, already authorized by the Transporta-
tion Code, as an approved method to pay these fees. See Tex.
Transp. Code at 621.351 (oversize or overweight permits) and
623.096 (manufactured or industrialized housing). Proposed
simultaneous amendments to 209.23(a)(5) also add a refer-
ence to the use of PAC as anticipated by the proposed amend-
ment to 219.11(f)(1)(A).
CHANGES IN CREDIT CARD CHARGES
Existing 209.23(b) requires that persons paying department
fees "by credit card, debit card, or electronic funds transfer will
pay the amount of the service charge per transaction along
with the applicable fee." Proposed simultaneous amendment to
209.23(b) establishes that the service charge for all depart-
ment credit card and ACH transactions will be charged whatever
service fee is applied by the third-party transaction processor,
which in most cases will be the standard DIR Texas.gov system
fee, set pursuant to Government Code, 2054.2591. Amending
209.2, 209.23, 218.15, 218.42, and 219.11(f) to require pay-
ment of service fees is a necessity because the current sections
set reimbursements to the department for fees paid by credit
card below the actual cost of processing those transactions.
The payment of these transaction fees results in an annual
loss to the department of $1,330,000. ACH fees which are
currently $.25 are paid by the department, but are expected to
rise to $3 per transaction and would result in increase in agency
costs of approximately $55,000. Pass-through of the applicable
processing fees will eliminate this loss. Existing 219.11(f) is
amended to reflect that the applicable transaction charges will
apply.
FISCAL NOTE
Linda M. Flores, Chief Financial Officer, has determined that
for each of the first five years the amendments as proposed
are in effect, fiscal implications are anticipated for the depart-
ment due to administration or enforcement of the proposed
amendments. The annual agency loss from merchant services
charges for credit card purchases of department goods and
services is primarily due to the Motor Carrier Division self-issue
permits purchased online through Texas Permitting and Routing
Optimization System (TxPROS). The agency administration
or enforcement of the proposed amendments, such as the
increase in credit card service charges will eliminate agency
losses from merchant services charges. No fiscal implications
are anticipated for other units of state or local governments as
a result of the administration or enforcement of the proposed
amendments. State agencies and local governments do not
typically purchase goods or services from the department,
especially Motor Carrier Division permits, and agency records
indicate that no Motor Carrier Division permits have been issued
to local governments.
Ms. Flores has certified that there will be no significant impact on
local economies or overall employment as a result of enforcing
or administering the amendments.
PUBLIC BENEFIT AND COST
Ms. Flores has also determined that for each year of the first five
years the sections are in effect, the public benefit anticipated as
a result of enforcing or administering the amendments will be
to continue the convenience of accepting credit cards for pay-
ment of agency goods and services. Individual purchasers ofthose goods and services, especially Motor Carrier Division on-
line self-issue permits, will experience an increase in the service
charge on transactions made by credit card. However, these
fees are set by DIR pursuant to statute, and the department
must use the DIR Texas.gov system to process such transac-
tions. The department will not collect any fee for processing such
transactions above the DIR-collected fee. The amendments re-
move debit cards and electronic fund transfers from the coverage
of service charges, and specify several alternate methods to pay
for department goods or services without a service charge. Af-
fected purchasers, especially Motor Carrier Division customers,
may select other payment methods or they may decide to charge
their own customers more to cover the credit card service charge
increases.
SMALL AND MICRO BUSINESS ASSESSMENT
There may be some minor economic effect on small or micro
businesses or individuals, who will see an increase for credit
card purchases of department services. The department does
not anticipate that the overall effect to small and micro business
will be adverse, however, because these increases will be offset
by the convenience of availability of credit cards as an authorized
method of payment for goods or services. Any small or micro
businesses could also pass the cost of the transaction fees on
to their customers as a cost of doing business.
TAKINGS IMPACT ASSESSMENT
The department has determined that this proposal affects no pri-
vate real property interests and that this proposal does not re-
strict or limit an owner's right to property that would otherwise
exist in the absence of government action, and so does not con-
stitute a taking or require a takings impact assessment under the
Government Code, 2007.043.
SUBMITTAL OF COMMENTS
Written comments on the proposed amendments may be submit-
ted to David D. Duncan, General Counsel, Texas Department of
Motor Vehicles, 4000 Jackson Avenue, Building 1, Austin, Texas
78731. The deadline for receipt of comments is 5:00 p.m. on
January 21, 2014.
STATUTORY AUTHORITY
The amendments are proposed under Transportation Code,
1002.001, which provides the board of the department with the
authority to adopt rules that are necessary and appropriate to
implement the powers and the duties of the department under
the Transportation Code; and more specifically, Transportation
Code, 1001.009, which authorizes the board to adopt rules
regarding the collection of fees for department goods and
services, including authorizing a service charge for a credit card
payment in addition to the fee; Transportation Code, 621.356,
which authorizes the board to adopt rules prescribing methods
of payment for fees for oversize/overweight permits; Trans-
portation Code, 623.076, which authorizes the board to adopt
rules to accept credit cards for payment of oversize/overweight
permits, and allows the department to require the payment of
a service charge for use of credit cards; Transportation Code,
643.004, which authorizes the board to adopt rules on the
methods of payment of fees for commercial motor carrier regis-
trations, and authorizes requiring the payment of fees for use of
a credit card to make such payments; and Transportation Code,
645.002, which authorizes the board to adopt rules regarding
methods of payment for fees for filing proof of insurance for38 TexReg 9234 December 20, 2013 Texas Register
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Texas. Secretary of State. Texas Register, Volume 38, Number 51, Pages 9155-9408, December 20, 2013, periodical, December 20, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth379981/m1/80/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.