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90_HB0200
New Act
30 ILCS 105/5.449 new
Creates the Financial Transaction Card Acceptance Act.
Authorizes State agencies to accept payment by financial
transaction card in accordance with rules adopted and
agreements negotiated by the State Treasurer. Effective
immediately.
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1 AN ACT concerning financial transaction card acceptance.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Financial Transaction Card Acceptance Act.
6 Section 5. Findings and purpose.
7 (a) The General Assembly finds and declares that there
8 are costs associated with the processing of all forms of
9 payment, including cash, checks, and financial transaction
10 cards. The General Assembly also finds and declares that
11 accepting payment by financial transaction cards will enable
12 State agencies to take advantage of new technologies that
13 will improve efficiency and increase consumer convenience by
14 providing alternative methods for payment.
15 The General Assembly further finds that acceptance of
16 payment by financial transaction cards can be cost effective
17 for the State in that it provides for next-day availability
18 of guaranteed funds, reduces the number of dishonored checks,
19 and reduces paperwork.
20 (b) It is the purpose of this Act to make available to
21 State agencies a means for accepting payment by financial
22 transaction cards. The State Treasurer is charged with
23 responsibility for executing collection on all moneys
24 received by the State in whatever form. The State Treasurer
25 has been granted authority to enter into relationships with
26 financial institutions to facilitate this collection process.
27 This authority extends to the processing of financial
28 transaction card payments.
29 (c) The General Assembly finds that it is appropriate
30 and in the best interests of the people of this State to
31 authorize State agencies to accept payment by financial
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1 transaction card for many types of transactions. The General
2 Assembly further finds that it is in the public interest to
3 authorize the State Treasurer to create, implement, and
4 administer a program through which State agencies may accept
5 payments by financial transaction cards and to pay for
6 certain costs associated therewith.
7 Section 10. Definitions.
8 "Financial transaction card" means an instrument or
9 device, whether known as a credit card, bank card, charge
10 card, debit card, automated teller machine card, secured
11 credit card, smart card, electronic purse, prepaid card,
12 affinity card, or by any other name, issued with or without
13 fee by an issuer for the use of the holder to obtain credit,
14 money, goods, services, or anything else of value.
15 Section 15. Financial Transaction Card Acceptance
16 Program.
17 (a) The State Treasurer of the State of Illinois shall
18 create, implement, and administer a Financial Transaction
19 Card Acceptance Program for use by State agencies. This
20 program shall authorize participating State agencies to
21 accept payments by financial transaction card for specified
22 types of transactions. The State Treasurer shall adopt
23 rules, forms, guidelines, and procedures necessary or useful
24 for setting the parameters of the program, for identifying
25 the types of costs payable by the State Treasurer under the
26 program, and for the general administration of the program.
27 (b) The State Treasurer may enter into contractual
28 relationships with one or more financial institutions or
29 other service providers to facilitate the processing of
30 financial transaction card payments for participating State
31 agencies. Such contracts shall identify the specific
32 services to be provided, an itemized list of the fees
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1 charged, and the means by which each such fee shall be paid.
2 Such contracts may include a discount fee to cover the costs
3 of interchange, assessments and authorizations, a per item
4 processing fee for the service provider, and any other fee
5 that may be applicable to specific circumstances.
6 (c) The State Treasurer may provide for payment of
7 discount fees and processing fees associated with the
8 acceptance of financial transaction cards arising out of the
9 operation of the program through payments from the Financial
10 Transaction Card Services Fund. Pursuant to an
11 intergovernmental cooperation agreement, the State Treasurer
12 shall also provide for payment from the Financial Transaction
13 Card Services Fund of discount fees associated with the
14 acceptance of financial transaction cards by any other
15 elected Constitutional State Officer for programs in
16 existence prior to June 1, 1997.
17 Section 20. Participation in program.
18 (a) Every agency of State government may participate in
19 the Financial Transaction Card Acceptance Program. Before
20 beginning participation, a State agency shall enter into a
21 participation agreement with the State Treasurer. This
22 agreement shall (i) specify the types of obligations for
23 which the agency intends to accept payment by financial
24 transaction card, (ii) provide a compelling cost/benefit
25 analysis that establishes the added value of this service to
26 that agency, (iii) specify the forms and procedures to be
27 used by the agency for reconciling deposits and sales, and
28 (iv) include any other terms that may be deemed appropriate
29 for that agency by the State Treasurer.
30 (b) A State agency may accept payment by financial
31 transaction card for any type of payment other than a tax
32 payment (including without limitation payment of fees, fines,
33 and charges for goods and services) that the agency is
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1 authorized by law to collect, but only in accordance with the
2 agency's participation agreement, the State Treasurer's
3 processing agreements, and the rules, guidelines, and
4 procedures adopted by the State Treasurer. A State agency
5 need not participate in the Financial Transaction Card
6 Acceptance Program, and it may refuse to accept financial
7 transaction cards for some types of payment while
8 participating in the program with respect to other types of
9 payment.
10 Section 25. Creation of Fund. There is hereby created
11 in the State treasury a special fund to be known as the
12 Financial Transaction Card Services Fund. Moneys deposited
13 in the Fund shall be used by the State Treasurer for the
14 payment of discount fees and processing costs associated with
15 the Financial Transaction Card Acceptance Program or as
16 otherwise permitted in subsection (c) of Section 15 of this
17 Act.
18 Section 30. Fund deposits and payments. The State
19 Treasurer shall transfer each month from the General Revenue
20 Fund to the Financial Transaction Card Services Fund
21 one-twelfth of the amount annually appropriated by the
22 General Assembly for the purposes of this Act.
23 Section 95. The State Finance Act is amended by adding
24 Section 5.449 as follows:
25 (30 ILCS 105/5.449 new)
26 Sec. 5.449. The Financial Transaction Card Services
27 Fund.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.