[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] |
91_HB2120eng HB2120 Engrossed 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 governing15bodyof 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,The19governing bodymay 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,the24governing bodyhas 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. HB2120 Engrossed -2- LRB9104686PTmb 1 (b) Unless the governing body mandates otherwise, an 2 elected official, with respect to his or her office,The3governing bodyof 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,entity19 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 the28entitydetermines 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 HB2120 Engrossed -3- LRB9104686PTmb 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,The14governing bodyof 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, HB2120 Engrossed -4- LRB9104686PTmb 1 or accumulation of fees, in excess ofthe lesser of $40 or3% 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.)