State of Illinois
90th General Assembly

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      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
 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
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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.

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