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90_SB0680ham001
LRB9003192JSgcam01
1 AMENDMENT TO SENATE BILL 680
2 AMENDMENT NO. . Amend Senate Bill 680 by replacing
3 the title with the following:
4 "AN ACT concerning the acceptance by local governmental
5 entities of payment by credit card."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 1. Short title. This Act may be cited as the
9 Local Governmental Acceptance of Credit Cards Act.
10 Section 10. Definitions.
11 "Credit card" means an instrument or device, whether
12 known as a credit card, bank card, charge card, debit card,
13 automated teller machine card, secured credit card, smart
14 card, electronic purse, prepaid card, affinity card, or by
15 any other name, issued with or without fee by an issuer for
16 the use of the holder to obtain credit, money, goods,
17 services, or anything else of value.
18 Section 15. Local government credit card acceptance
19 program.
20 (a) Any unit of local government, any community college
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1 district, and any school district that has the authority to
2 accept the payment of funds for any purpose is authorized,
3 but not required, to accept payment by credit card.
4 (b) This Act shall be broadly construed to authorize,
5 but not require, acceptance of credit card payments by all
6 units of local government, community college districts, and
7 school districts.
8 (c) This Act authorizes the acceptance of credit card
9 payments for all types of obligations.
10 (d) This Act does not limit the authority of clerks of
11 court to accept payment by credit card pursuant to the Clerks
12 of Court Act or the Unified Code of Corrections.
13 Section 20. Election by local governmental entities to
14 accept credit cards.
15 (a) The decision whether to accept credit card payments
16 for any particular type of obligation shall be made by the
17 governing body of the local governmental entity that has
18 general discretionary authority over the manner of acceptance
19 of payments. The governing body may adopt reasonable rules
20 governing the manner of acceptance of payments by credit
21 card.
22 (b) The governing body of the entity accepting payment
23 by credit card may enter into agreements with one or more
24 financial institutions or other service providers to
25 facilitate the acceptance and processing of credit card
26 payments. Such agreements shall identify the specific
27 services to be provided, an itemized list of the fees
28 charged, and the means by which each such fee shall be paid.
29 Such agreements may include a discount fee to cover the costs
30 of interchange, assessments and authorizations, a per item
31 processing fee for the service provider, and any other fee,
32 including a payment of a surcharge or convenience fee, that
33 may be applicable to specific circumstances. Any agreement
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1 for acceptance of payments by credit cards may be canceled by
2 the governmental entity upon giving reasonable notice of
3 intent to cancel.
4 (c) An entity accepting payments by credit card may pay
5 amounts due a financial institution or other service provider
6 by (i) paying the financial institution or other service
7 provider upon presentation of an invoice or (ii) allowing the
8 financial institution or other service provider to withhold
9 the amount of the fees from the credit card payment. A
10 discount or processing fee may be authorized whenever the
11 governing body of the entity determines that any reduction of
12 revenue resulting from the discount or processing fee will be
13 in the best interest of the entity. Items that may be
14 considered in making a determination to authorize the payment
15 of fees or the acceptance of a discount include, but are not
16 limited to, improved governmental cash flows, reduction of
17 governmental overhead, improved governmental financial
18 security, a combination of these items, and the benefit of
19 increased public convenience.
20 Section 25. Surcharge authorized. The governing body of
21 a local governmental entity authorizing acceptance of payment
22 by credit card may, but is not required to, impose a
23 convenience fee or surcharge upon a person making payment by
24 credit card in an amount to wholly or partially offset, but
25 in no event exceed, the amount of the cost of any equipment
26 necessitated by the acceptance of credit cards and any
27 discount or fee incurred by the local governmental entity.
28 This convenience fee or surcharge may be applied only when
29 allowed under the operating rules and regulations of the
30 credit card involved. When a person elects to make a payment
31 by credit card to a local governmental entity and a
32 convenience fee or surcharge is imposed, the payment of the
33 convenience fee or surcharge shall be deemed voluntary by the
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1 person and shall not be refundable.
2 Section 30. Relief from underlying obligation. A person
3 who makes a payment by credit card to a local governmental
4 entity shall not be relieved from liability for the
5 underlying obligation except to the extent that the local
6 governmental entity realizes final payment of the underlying
7 obligation in cash or the equivalent. If final payment is
8 not made by the credit card issuer or other guarantor of
9 payment in the credit card transaction, then the underlying
10 obligation shall survive and the local governmental entity
11 shall retain all remedies for enforcement that would have
12 applied if the credit card transaction had not occurred. A
13 person making payment by credit card is not liable for any
14 discount or fee paid to a credit card issuer or other party
15 by a local governmental entity.
16 Section 35. Liability of local governmental employees.
17 A local governmental employee who accepts payment by credit
18 card in accordance with this Act and any applicable rules
19 shall not incur personal liability for the final collection
20 of the payment.
21 Section 99. Effective date. This Act takes effect upon
22 becoming law.".