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91_HB2120
LRB9104686PTmb
1 AN ACT to amend the Local Government Acceptance of Credit
2 Cards Act by changing Sections 20 and 25.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Local Government Acceptance of Credit
6 Cards Act is amended by changing Sections 20 and 25 as
7 follows:
8 (50 ILCS 345/20)
9 Sec. 20. Election by local governmental entities to
10 accept credit cards.
11 (a) Unless the governing body mandates otherwise, the
12 decision whether to accept credit card payments for any
13 particular type of obligation shall be made by each elected
14 official, with respect to his or her office, the governing
15 body of the local governmental entity that has general
16 discretionary authority over the manner of acceptance of
17 payments. Unless the governing body mandates otherwise, an
18 elected official, with respect to his or her office, The
19 governing body may adopt reasonable rules governing the
20 manner of acceptance of payments by credit card. Unless the
21 governing body mandates otherwise, no decision to accept
22 credit card payments under this Act shall be made until the
23 elected official, with respect to his or her office, the
24 governing body has determined, following a public hearing
25 held not sooner than 10 nor later than 30 days following
26 public notice of the hearing, that the acceptance of credit
27 card payments for the types of authorized obligations
28 specified in the public notice is in the best interests of
29 the citizens and governmental administration of the local
30 governmental entity or community college and of the students
31 and taxpayers thereof.
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1 (b) Unless the governing body mandates otherwise, an
2 elected official, with respect to his or her office, The
3 governing body of the entity accepting payment by credit card
4 may enter into agreements with one or more financial
5 institutions or other service providers to facilitate the
6 acceptance and processing of credit card payments. Such
7 agreements shall identify the specific services to be
8 provided, an itemized list of the fees charged, and the means
9 by which each such fee shall be paid. Such agreements may
10 include a discount fee to cover the costs of interchange,
11 assessments and authorizations, a per item processing fee for
12 the service provider, and any other fee, including a payment
13 of a surcharge or convenience fee, that may be applicable to
14 specific circumstances. Any agreement for acceptance of
15 payments by credit cards may be canceled by the governmental
16 entity upon giving reasonable notice of intent to cancel.
17 (c) Unless the governing body mandates otherwise, an
18 elected official, with respect to his or her office, entity
19 accepting payments by credit card may pay amounts due a
20 financial institution or other service provider by (i) paying
21 the financial institution or other service provider upon
22 presentation of an invoice or (ii) allowing the financial
23 institution or other service provider to withhold the amount
24 of the fees from the credit card payment. Unless the
25 governing body mandates otherwise, a discount or processing
26 fee may be authorized whenever the elected official, with
27 respect to his or her office, the governing body of the
28 entity determines that any reduction of revenue resulting
29 from the discount or processing fee will be in the best
30 interest of the entity. Items that may be considered in
31 making a determination to authorize the payment of fees or
32 the acceptance of a discount include, but are not limited to,
33 improved governmental cash flows, reduction of governmental
34 overhead, improved governmental financial security, a
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1 combination of these items, and the benefit of increased
2 public convenience. No payment to or withheld by a financial
3 institution or other service provider may exceed the amounts
4 authorized under subsection (b) of Section 25.
5 (d) Unless specifically prohibited by an ordinance or
6 rule adopted by the governing body of the local governmental
7 entity, a person may pay multiple tax bills in a single
8 transaction.
9 (Source: P.A. 90-518, eff. 8-22-97.)
10 (50 ILCS 345/25)
11 Sec. 25. Payment of fees by cardholders.
12 (a) Unless the governing body mandates otherwise, an
13 elected official, with respect to his or her office, The
14 governing body of a local governmental entity authorizing
15 acceptance of payment by credit card may, but is not required
16 to, impose a convenience fee or surcharge upon a cardholder
17 making payment by credit card in an amount to wholly or
18 partially offset, but in no event exceed, the amount of any
19 discount or processing fee incurred by the local governmental
20 entity. This convenience fee or surcharge may be applied
21 only when allowed under the operating rules and regulations
22 of the credit card involved. When a cardholder elects to
23 make a payment by credit card to a local governmental entity
24 and a convenience fee or surcharge is imposed, the payment of
25 the convenience fee or surcharge shall be deemed voluntary by
26 the person and shall not be refundable.
27 (b) No fee, or accumulation of fees, that exceeds the
28 lesser of $20 or 5% of the principal amount charged may be
29 imposed in connection with the issuance of any license,
30 sticker, or permit, or with respect to any other similar
31 transaction. No fee, or accumulation of fees, that exceeds
32 the lesser of $5 or 5% of the transaction involved may be
33 imposed in connection with the payment of any fine. No fee,
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1 or accumulation of fees, in excess of the lesser of $40 or 3%
2 of the principal amount charged may be imposed in connection
3 with the payment of any real estate or other tax.
4 (c) Notwithstanding the provisions of subsection (b), a
5 minimum fee of $1 may be imposed with respect to any
6 transaction.
7 (Source: P.A. 90-518, eff. 8-22-97.)