HB 2962

83(R) - 2013
Government Efficiency & Reform

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Linda Harper-Brown

Bill Caption

Relating to the use of a credit or charge card by a state agency to make certain purchases.

Fiscal Notes

The bill would have an indeterminate fiscal cost to the state but the cost is expected to be insignificant, depending on determinations made by the Comptroller of Public Accounts. No fiscal implication to units of local government is anticipated. The Comptroller of Public Accounts reports that there would be no cost to implement the provisions of the bill. However, the Health and Human Services Commission (HHSC) anticipates an All Funds increased cost of $1.3 million for the biennium for ten additional FTEs to issue and monitor state issued credit cards to employees for travel. HHSC reports that the fiscal impact is due to the large number of employees who are required to travel to fulfill their work responsibilities.

Bill Analysis

Summary: HB 2962 requires a state agency within the executive branch to use credit or charge cards for all purchases and travel expenses unless the Comptroller's Office provides a reason for using a different form of payment that benefits the state. State agency employees are prohibited from using a personal card. Lastly, the Governor's Office and institutions of higher education are exempted from the provisions in HB 2962.

Analysis: HB 2962 indicates the potential for credit and charge cards to provide greater efficiency and more transparency; however, there is not sufficient research and data to show that the cards will produce the intended results. Also, the Legislative Budget Board indicates that the Health and Human Services Commission anticipates needing ten additional FTEs which seems more than necessary since most of the card related responsibilities could be absorbed by current staff.

The potential for cost savings is real but ambiguous without hard data demonstrating what the savings would be. Furthermore, there is a significant potential for the credit cards to be used for personal purchases. In the absence of clear evidence supporting or opposing the case for this legislation, we remain neutral.