§ 35-21-1 - Credit card payments on amounts due state and local governments.
SECTION 35-21-1
§ 35-21-1 Credit card payments on amountsdue state and local governments. – (a) Notwithstanding any other provision of general law to the contrary, anydepartment or agency as defined in chapter 1 of this title, or other unit ofstate or local government delineated in this section, which is required orauthorized to receive or collect any payments to state government, may beauthorized, but not required, to accept credit card payments of such amountsand in such manner as may be prescribed or limited by this chapter. Any suchdepartment, agency or other governmental unit receiving approval from thedirector of the department of administration pursuant to this chapter shall beknown as an "authorized department or agency."
(b) Subject to the provisions of this chapter, the directorof the department of administration shall establish procedures, in consultationwith the state controller and general treasurer, by which: (i) a department,agency or other governmental unit may be approved as an authorized departmentor agency; (ii) specific fees, charges, taxes, tuition or other payments tostate or local government may be approved for payment by credit card by anauthorized department or agency; and (iii) the manner of acceptance of creditcard payments is established. Factors which may be considered in making suchdeterminations or establishing such procedures may include, but are notnecessarily limited to, improved governmental cash flow, reduction ofgovernmental overhead costs, improved governmental financial security, thebenefit of increased public convenience or a combination of one or more of theforegoing.
(c) For purposes of this section, the term "credit card"shall be deemed to include credit cards, charge cards, debit cards, electronicfunds transfers or similar means of automatic transmission of funds.
(d) The state controller and general treasurer are jointlyauthorized to enter into appropriate agreements with credit card issuers,financial institutions or other appropriate parties as needed to facilitate theacceptance of credit card payments pursuant to this chapter. Without limitingthe generality of the foregoing, such agreements may provide for the acceptanceof credit card payments at a discount from their face amount or the payment orwithholding of administrative fees from the face amount of such payments,provided such payment or discount does not exceed a commercially reasonablepercentage of the face amount of such payment as may be determined by the statecontroller and general treasurer. Any such agreement shall provide that it maybe canceled at any time, but the agreement may include provisions for areasonable brief period of notice for cancellation.
(e) No person making any payment by credit card shall berelieved from liability for the underlying obligation except to the extent thatthe state realizes final payment of the underlying obligation in cash or theequivalent. If final payment is not made by the credit card issuer or otherguarantor of payment in the credit card transaction, then the underlyingobligation shall survive and the state shall retain all remedies forenforcement which would have applied if the credit card transaction had notoccurred. No contract may modify the provisions of this subsection. Thissubsection, however, shall not make the underlying obligor liable for anydiscount or administrative fees paid to the credit card issuer or other partyby the state, except with child support payments. Credit cards shall only beaccepted for child support payments if a means is established to ensure thatthe full amount of the child support payment made by credit card is received bythe recipient and that state revenue is not used to pay any fee charged by thecredit card company for the child support payment.
(f) A state officer or employee who accepts a credit cardpayment in accordance with this section and any applicable procedures,policies, rules, or regulations of the state shall not thereby incur anypersonal liability for the final collection of such payments.
(g) This section shall be broadly construed to authorize, butnot require, acceptance of credit card payments by authorized departments oragencies. The decision as to whether to utilize credit card payments for anyparticular type of payment may be made by the authorized department or agency,subject to this chapter.
(h) Credit card account numbers in the possession of a stateor local government are confidential and shall not be deemed public records.