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90_SB0680enr
205 ILCS 5/1 from Ch. 17, par. 301
205 ILCS 105/1-1 from Ch. 17, par. 3301-1
205 ILCS 305/1 from Ch. 17, par. 4401
Amends the Illinois Banking Act by changing the title of
the Act to the Banking Act. Makes the change in the short
title Section only. Amends the Illinois Savings and Loan Act
of 1985 by changing the title of the Act to the Illinois
Savings and Loan Act. Makes the change in the short title
Section only. Amends the Illinois Credit Union Act by
changing the title of the Act to the Credit Union Act. Makes
the change in the short title Section only.
LRB9003192LDdv
SB680 Enrolled LRB9003192LDdv
1 AN ACT concerning the acceptance by local governmental
2 entities of payment by credit card.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as the
6 Local Governmental Acceptance of Credit Cards Act.
7 Section 10. Definitions.
8 "Authorized obligation" means, in connection with a
9 county, city, town, or other similar form of local municipal
10 government, any fine, fee, charge, tax, or cost imposed by,
11 owing to, or collected by or on behalf of a unit of local
12 government. In connection with a community college district,
13 "authorized obligation" means tuition costs, books, charges
14 for meals, and other education or college-related fines,
15 fees, charges, or costs imposed upon or incurred by students
16 or pupils.
17 "Credit card" means an instrument or device, whether
18 known as a credit card, bank card, charge card, debit card,
19 automated teller machine card, secured credit card, smart
20 card, electronic purse, prepaid card, affinity card, or by
21 any other name, issued with or without fee by an issuer for
22 the use of the holder to obtain credit, money, goods,
23 services, or anything else of value.
24 Section 15. Local government credit card acceptance
25 program.
26 (a) Any unit of local government and any community
27 college district that has the authority to accept the payment
28 of funds for any purpose is authorized, but not required, to
29 accept payment by credit card.
30 (b) This Act shall be broadly construed to authorize,
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1 but not require, acceptance of credit card payments by all
2 units of local government and community college districts.
3 (c) This Act authorizes the acceptance of credit card
4 payments for all types of authorized obligations.
5 (d) This Act does not limit the authority of clerks of
6 court to accept payment by credit card pursuant to the Clerks
7 of Court Act or the Unified Code of Corrections.
8 (e) A local governmental entity may not receive and
9 retain, directly or indirectly, any convenience fee,
10 surcharge, or other fee in excess of the amount paid in
11 connection with the credit card transaction. In addition, a
12 financial institution or service provider may not pay,
13 refund, rebate, or return, directly or indirectly, to a local
14 governmental entity for final retention any portion of a
15 surcharge, convenience fee, or other fee paid in connection
16 with a credit card transaction.
17 Section 20. Election by local governmental entities to
18 accept credit cards.
19 (a) The decision whether to accept credit card payments
20 for any particular type of obligation shall be made by the
21 governing body of the local governmental entity that has
22 general discretionary authority over the manner of acceptance
23 of payments. The governing body may adopt reasonable rules
24 governing the manner of acceptance of payments by credit
25 card. No decision to accept credit card payments under this
26 Act shall be made until the governing body has determined,
27 following a public hearing held not sooner than 10 nor later
28 than 30 days following public notice of the hearing, that the
29 acceptance of credit card payments for the types of
30 authorized obligations specified in the public notice is in
31 the best interests of the citizens and governmental
32 administration of the local governmental entity or community
33 college and of the students and taxpayers thereof.
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1 (b) The governing body of the entity accepting payment
2 by credit card may enter into agreements with one or more
3 financial institutions or other service providers to
4 facilitate the acceptance and processing of credit card
5 payments. Such agreements shall identify the specific
6 services to be provided, an itemized list of the fees
7 charged, and the means by which each such fee shall be paid.
8 Such agreements may include a discount fee to cover the costs
9 of interchange, assessments and authorizations, a per item
10 processing fee for the service provider, and any other fee,
11 including a payment of a surcharge or convenience fee, that
12 may be applicable to specific circumstances. Any agreement
13 for acceptance of payments by credit cards may be canceled by
14 the governmental entity upon giving reasonable notice of
15 intent to cancel.
16 (c) An entity accepting payments by credit card may pay
17 amounts due a financial institution or other service provider
18 by (i) paying the financial institution or other service
19 provider upon presentation of an invoice or (ii) allowing the
20 financial institution or other service provider to withhold
21 the amount of the fees from the credit card payment. A
22 discount or processing fee may be authorized whenever the
23 governing body of the entity determines that any reduction of
24 revenue resulting from the discount or processing fee will be
25 in the best interest of the entity. Items that may be
26 considered in making a determination to authorize the payment
27 of fees or the acceptance of a discount include, but are not
28 limited to, improved governmental cash flows, reduction of
29 governmental overhead, improved governmental financial
30 security, a combination of these items, and the benefit of
31 increased public convenience. No payment to or withheld by a
32 financial institution or other service provider may exceed
33 the amounts authorized under subsection (b) of Section 25.
34 (d) Unless specifically prohibited by an ordinance or
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1 rule adopted by the governing body of the local governmental
2 entity, a person may pay multiple tax bills in a single
3 transaction.
4 Section 25. Payment of fees by cardholders.
5 (a) The governing body of a local governmental entity
6 authorizing acceptance of payment by credit card may, but is
7 not required to, impose a convenience fee or surcharge upon a
8 cardholder making payment by credit card in an amount to
9 wholly or partially offset, but in no event exceed, the
10 amount of any discount or processing fee incurred by the
11 local governmental entity. This convenience fee or surcharge
12 may be applied only when allowed under the operating rules
13 and regulations of the credit card involved. When a
14 cardholder elects to make a payment by credit card to a local
15 governmental entity and a convenience fee or surcharge is
16 imposed, the payment of the convenience fee or surcharge
17 shall be deemed voluntary by the person and shall not be
18 refundable.
19 (b) No fee, or accumulation of fees, that exceeds the
20 lesser of $20 or 5% of the principal amount charged may be
21 imposed in connection with the issuance of any license,
22 sticker, or permit, or with respect to any other similar
23 transaction. No fee, or accumulation of fees, that exceeds
24 the lesser of $5 or 5% of the transaction involved may be
25 imposed in connection with the payment of any fine. No fee,
26 or accumulation of fees, in excess of the lesser of $40 or 3%
27 of the principal amount charged may be imposed in connection
28 with the payment of any real estate or other tax.
29 (c) Notwithstanding the provisions of subsection (b), a
30 minimum fee of $1 may be imposed with respect to any
31 transaction.
32 Section 30. Relief from underlying obligation. A person
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1 who makes a payment by credit card to a local governmental
2 entity shall not be relieved from liability for the
3 underlying obligation except to the extent that the local
4 governmental entity realizes final payment of the underlying
5 obligation in cash or the equivalent. If final payment is
6 not made by the credit card issuer or other guarantor of
7 payment in the credit card transaction, then the underlying
8 obligation shall survive and the local governmental entity
9 shall retain all remedies for enforcement that would have
10 applied if the credit card transaction had not occurred. A
11 person making payment by credit card is not liable for any
12 discount or fee paid to a credit card issuer or other party
13 by a local governmental entity.
14 Section 35. Liability of local governmental employees.
15 A local governmental employee who accepts payment by credit
16 card in accordance with this Act and any applicable rules
17 shall not incur personal liability for the final collection
18 of the payment.
19 Section 95. The Property Tax Code is amended by changing
20 Section 20-25 as follows:
21 (35 ILCS 200/20-25)
22 Sec. 20-25. Forms of payment. Taxes levied by taxing
23 districts may be satisfied by payment in legal money of the
24 United States, cashier's check, certified check, post office
25 money order, bank money order issued by a national or state
26 bank that is insured by the Federal Deposit Insurance
27 Corporation, or by a personal or corporate check drawn on
28 such a bank, to the respective collection officers who are
29 entitled by law to receive the tax payments or by credit card
30 in accordance with the Local Governmental Acceptance of
31 Credit Cards Act. A county collector may refuse to accept a
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1 personal check within 30 days before a tax sale.
2 (Source: P.A. 86-345; 88-455.)
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.