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                                                                  H.B. No. 1935




AN ACT

relating to the acceptance of credit cards by a water district for 
the payment of fees and charges imposed by the district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 49, Water Code, is amended 
by adding Section 49.2121 to read as follows:
	Sec. 49.2121.  ACCEPTANCE OF CREDIT CARDS.  (a)  In this 
section, "credit card" means a card, plate, or similar device 
authorizing a designated person or bearer to obtain goods, 
services, money, or any other thing of value on credit.
	(b)  A district may:                                                    
		(1)  accept a credit card for the payment of any fees 
and charges imposed by the district;
		(2)  collect a fee, not to exceed five percent of the 
amount of the fee or charge being paid, that is reasonably related 
to the expense incurred by the district in processing the payment by 
credit card; and
		(3)  collect a service charge for the expense incurred 
by the district in collecting the original fee or charge if the 
payment by credit card is not honored by the credit card company on 
which the funds are drawn.
	(c)  The service charge under Subsection (b)(3) may not 
exceed the amount charged for the collection of a check drawn on an 
account with insufficient funds.
	(d)  The district may not collect the service charge under 
Subsection (b)(3) if:
		(1)  the district is notified at the time of payment 
that the payment is not honored; and
		(2)  the customer immediately submits to the district 
an alternative form of payment.
	SECTION 2.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 1935 was passed by the House on April 
22, 2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 1935 was passed by the Senate on May 
17, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor