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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. LRB9000725DNmb LRB9000725DNmb 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 -2- LRB9000725DNmb 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 -3- LRB9000725DNmb 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 -4- LRB9000725DNmb 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.
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