(a) Intent. The comptroller has been granted authority by Government Code, §403.023(a)(1), to authorize a state agency to accept credit, charge and debit cards for the payment of fees, taxes and other charges assessed by the state agency if the comptroller determines that the best interest of the state will be promoted.
(b) Purpose.
  (1) The purpose of these rules is to provide a uniform procedure through which the comptroller may authorize a state agency to accept credit, charge and debit cards for the payment of fees, taxes and other charges assessed by the state agency.
  (2) These rules do not apply to a particular state agency's authority to accept credit, charge and debit cards if:
    (A) another law specifically authorizes, requires, prohibits, or otherwise regulates the acceptance of credit, charge and debit cards;
    (B) acceptance of credit or charge cards would affect a contract that the state agency has entered into that is in effect on September 1, 1993; or
    (C) acceptance of charge or debit cards would affect a contract that the state agency has entered into that is in effect on September 1, 1999.
  (3) The comptroller may authorize a state agency to contract directly with vendors or with the comptroller. A state agency may not contract directly with vendors without prior approval of the comptroller.
  (4) The comptroller will act as an information resource to state agencies authorized by the comptroller to accept credit, charge and debit cards.
(c) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Chargeback--The return of a transaction when a consumer, bank, or vendor determines that a transaction is not valid resulting in the vendor's debit of the comptroller's designated account for the amount in question.
  (2) Coding block--The state agency's USAS information that will be submitted with each transaction. This information should consist of a transaction code, fund number, program cost account and comptroller object or state agency object.
  (3) Merchant number--The unique identification number(s) assigned by the vendor to each state agency or each state agency location, if requested by the state agency.
  (4) State agency--The meaning assigned by Government Code, §403.023(e).
  (5) State treasury--The meaning assigned by Government Code, §404.001(8).
  (6) USAS--The state's uniform statewide accounting system.
  (7) Vendor--A company or financial institution that provides a variety of merchant services including credit, charge and debit card billing, reporting, customer service, authorization and settlement services.

Source Note: The provisions of this §17.1 adopted to be effective June 11, 2001, 26 TexReg 4214