Full Text of HB0581 94th General Assembly
HB0581 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0581
Introduced 01/27/05, by Rep. Sara Feigenholtz SYNOPSIS AS INTRODUCED: |
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50 ILCS 345/15 |
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50 ILCS 345/20 |
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50 ILCS 345/25 |
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30 ILCS 805/8.29 new |
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Amends the Local Government Acceptance of Credit Cards Act. Provides that any unit of local government and any community college district
that
has the authority to accept the payment of funds for any purpose shall (now, is authorized, but not required to) accept payment by credit card. Makes corresponding changes. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement.
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FISCAL NOTE ACT MAY APPLY |
HOME RULE NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB0581 |
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LRB094 05472 MKM 35517 b |
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Local Government Acceptance of Credit Cards | 5 |
| Act is amended by changing Sections 15, 20, and 25 as follows:
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| (50 ILCS 345/15)
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| Sec. 15. Local government credit card acceptance program.
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| (a) Any unit of local government and any community college | 9 |
| district
that
has the authority to accept the payment of funds | 10 |
| for any purpose shall
is authorized,
but not required, to
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| accept payment by credit card.
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| (b) This Act shall be broadly construed to require
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| authorize, but not require,
acceptance of credit card payments | 14 |
| by all units
of local government and community college | 15 |
| districts.
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| (c) This Act requires
authorizes the acceptance of credit | 17 |
| card payments for all types
of authorized obligations.
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| (d) This Act does not limit the authority of clerks of | 19 |
| court to accept
payment by credit card pursuant to the Clerks | 20 |
| of Court Act or the Unified Code
of Corrections.
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| (e) A local governmental entity may not receive and retain, | 22 |
| directly or
indirectly, any convenience fee, surcharge, or | 23 |
| other fee in excess of the
amount paid in connection with
the | 24 |
| credit card transaction. In addition, a financial institution | 25 |
| or service
provider may
not pay, refund, rebate, or return, | 26 |
| directly or indirectly, to a local
governmental entity for | 27 |
| final retention any portion of a surcharge, convenience
fee, or | 28 |
| other fee
paid in connection with a credit card transaction.
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| (f) No unit of local government, including a home rule | 30 |
| unit, may require payment of funds for any purpose in a manner | 31 |
| inconsistent with this Section. This Section is a limitation | 32 |
| under subsection (i) of Section 6 of Article VII of the |
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HB0581 |
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LRB094 05472 MKM 35517 b |
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| Illinois Constitution on the concurrent exercise by home rule | 2 |
| units of powers and functions exercised by the State.
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| (Source: P.A. 90-518, eff. 8-22-97.)
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| (50 ILCS 345/20)
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| Sec. 20. Rules; agreements; payments
Election by local | 6 |
| governmental entities to accept credit cards .
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| (a) The decision whether to accept credit card payments for | 8 |
| any particular
type of obligation shall be made by
the | 9 |
| governing body of the local governmental entity that has | 10 |
| general
discretionary authority over the manner of
acceptance | 11 |
| of payments.
The governing body of a local governmental entity | 12 |
| may adopt
reasonable rules governing the manner of acceptance | 13 |
| of payments by credit card.
No decision to accept credit card | 14 |
| payments under this Act shall be made until
the governing body | 15 |
| has determined, following a public hearing held not sooner
than | 16 |
| 10 nor later
than 30 days following public notice of the | 17 |
| hearing, that the acceptance of
credit card payments for the | 18 |
| types of authorized obligations specified in the
public notice | 19 |
| is in the best interests of the citizens and governmental
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| administration of the local governmental entity or community | 21 |
| college
and of the students and taxpayers thereof.
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| (b) The governing body of the entity accepting payment by | 23 |
| 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 services | 27 |
| to be provided,
an itemized list of the fees charged, and the | 28 |
| means by which each such fee
shall be paid. Such agreements may | 29 |
| include a discount fee to cover the costs
of
interchange, | 30 |
| assessments and authorizations, a per item processing fee for | 31 |
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service provider, and any other fee, including a payment of | 32 |
| a surcharge or
convenience fee, that may be applicable to | 33 |
| specific circumstances.
Any agreement for
acceptance of | 34 |
| payments by credit cards may be canceled by the governmental
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| entity upon giving reasonable notice of intent to cancel.
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LRB094 05472 MKM 35517 b |
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| (c) An entity accepting payments by credit card may pay | 2 |
| amounts due
a financial institution or other service provider | 3 |
| by (i) paying the
financial
institution or other service | 4 |
| provider upon
presentation
of an invoice or (ii) allowing the | 5 |
| financial institution or other service
provider to withhold the | 6 |
| amount of
the fees from the credit card payment. A discount or | 7 |
| processing fee may be
authorized whenever the governing body of | 8 |
| the entity determines that any
reduction of revenue resulting | 9 |
| from the discount or processing fee will be in
the best
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| interest of the entity.
Items that may be considered in making | 11 |
| a determination to authorize the payment
of fees or the | 12 |
| acceptance of a discount include, but are not limited to,
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| improved governmental cash flows, reduction of governmental | 14 |
| overhead, improved
governmental financial security,
a | 15 |
| combination of these items, and the benefit of increased public | 16 |
| convenience.
No payment to or withheld by a financial | 17 |
| institution or other service provider
may exceed the amounts | 18 |
| authorized under subsection (b) of Section 25.
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| (d) Unless specifically prohibited by an ordinance or rule | 20 |
| adopted by the
governing body of the local governmental entity, | 21 |
| a person may pay multiple tax
bills in a single transaction.
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| (Source: P.A. 90-518, eff. 8-22-97.)
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| (50 ILCS 345/25)
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| Sec. 25. Payment of fees by cardholders.
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| (a) The governing body of a local
governmental
entity | 26 |
| authorizing acceptance of payment by credit card may, but is | 27 |
| not
required to, impose a convenience fee or surcharge upon a | 28 |
| cardholder making
payment
by credit
card in an amount to wholly | 29 |
| or partially offset, but in no event exceed, the
amount of
any | 30 |
| discount or processing fee incurred by the local
governmental | 31 |
| entity. This convenience
fee or surcharge
may be applied only | 32 |
| when allowed under the operating rules and
regulations of the | 33 |
| credit card involved. When a cardholder elects to make a
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| payment by credit card to a local governmental entity and a | 35 |
| convenience fee
or surcharge is
imposed, the payment of the |
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| convenience fee or surcharge shall be deemed
voluntary by the
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| person and shall not be refundable.
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| (b) No fee, or accumulation of fees,
that exceeds the | 4 |
| lesser of $20 or 5% of the principal amount charged
may be | 5 |
| imposed in connection with the
issuance of any license, | 6 |
| sticker, or permit, or with respect to any other
similar | 7 |
| transaction. No fee, or accumulation of fees, that exceeds
the | 8 |
| lesser of $5 or 5% of the transaction involved may be imposed | 9 |
| in connection
with the payment of any fine. No fee, or | 10 |
| accumulation of fees, in excess of
the lesser of $40 or 3% of | 11 |
| the principal amount charged may be imposed in
connection with | 12 |
| the payment of any real estate or other tax.
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| (c) Notwithstanding the provisions of subsection (b), a | 14 |
| minimum fee of $1
may be imposed with respect to any | 15 |
| transaction.
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| Notwithstanding the provisions of subsection (b), a fee in | 17 |
| excess of the
limits in
subsection (b) may be imposed by a | 18 |
| local governmental entity on a transaction
if (i) the fee
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| imposed by the local governmental entity is no greater than a | 20 |
| fee charged by
the financial
institution or service provider | 21 |
| accepting and processing credit card payments
on behalf of the
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| local governmental entity; (ii) the financial institution or | 23 |
| service provider
accepting and
processing the credit card | 24 |
| payments was selected by competitive bid and, when
applicable, | 25 |
| in
accordance with the provisions of the Illinois Procurement | 26 |
| Code; and (iii) the
local governmental
entity fully discloses | 27 |
| the amount of the fee to the cardholder.
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| (Source: P.A. 92-114, eff. 1-1-02.)
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| Section 90. The State Mandates Act is amended by adding | 30 |
| Section 8.29 as
follows:
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| (30 ILCS 805/8.29 new)
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| Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 | 33 |
| of this
Act, no reimbursement by the State is required for the | 34 |
| implementation of
any mandate created by this amendatory Act of |
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| the 94th General Assembly.
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