SECTIONS 6160-6166 - California Statutes

GOVERNMENT CODE

SECTION 6160-6166

6160. The Legislature finds and declares that there are costs
associated with all forms of payment, including cash and checks. The
Legislature further finds and declares that by accepting payment by
credit card or other payment devices, state agencies will be able to
take advantage of new technologies that will improve their efficiency
and will increase consumer convenience and choice by providing state
consumers with an alternative method of payment.

6161. For the purposes of this chapter:
(a) "Cardholder" means a person making a payment to a state agency
by credit card or payment device.
(b) "Credit card" shall have the same meaning as provided in
subsection (k) of Section 1602 of Title 15 of the United States Code
(Section 103(k) of the federal Truth in Lending Act, and regulations
promulgated thereunder).
(c) "Director" means the Director of General Services.
(d) "In person" means from one natural person to another who, as
an employee or other representative of a state agency, accepts
payment and processes the payment according to the procedures of the
agency.
(e) "Payment device" shall have the same meaning as the definition
of "accepted card or other means of access" set forth in paragraph
(1) of Section 1693a of Title 15 of the United States Code (Section
903(1) of the federal Electronic Fund Transfer Act), and for purposes
of this chapter shall also include a card that enables a person to
pay for transactions through the use of value stored on the card
itself.
(f) "Person" means a natural person or an organization, including
a corporation, partnership, limited liability company,
proprietorship, association, cooperative, estate, trust, or
government unit.
(g) "State agency" shall have the same meaning as set forth in
Section 11000.

6162. (a) Except as provided in Section 6159, the Director of
General Services, or his or her designee, may negotiate and enter
into any contracts necessary to implement or facilitate the
acceptance of credit cards or other payment devices by state
agencies. The authority granted to the director pursuant to this
section shall include the discretion to negotiate and agree to
specific terms applicable to each state agency, including, but not
limited to, the terms regarding any payment of fees to third parties
for the acceptance of credit cards or other payment devices, types of
payments, any limitations on amounts and limits of liabilities that
would be eligible for payment by credit card or other payment device,
and operational requirements.
(b) The director may negotiate master contracts or other contracts
that allow the cost-effective acceptance of payment by credit card
or other payment device. Additionally, the director or any state
agency negotiating these contracts shall use its best efforts to
minimize the financial impact of credit card or other payment device
acceptance on the state agency, taxpayers, and the public who use its
services.
(c) The director, in consultation with the Director of
e-Government, shall take steps to encourage the adoption of standard
payment policies and procedures for all state agencies. Furthermore,
a state agency may enter into an interagency agreement with another
state agency for the purposes of establishing uniform policies and
acquiring equipment to support payment by credit card or other
payment device.

6163. (a) (1) Except as provided in paragraphs (2) and (3), all
state agencies shall accept payment made by means of a credit card or
other payment device.
(2) (A) A state agency may request that the director grant an
exemption from paragraph (1) if the agency determines that its
acceptance of payments by credit card or other payment device would
have any of the following results:
(i) It would not be cost-effective.
(ii) It would result in a net additional unfunded cost to the
agency.
(iii) It would result in a shortfall of revenues to the State of
California.
(B) A request made pursuant to this paragraph shall state the
reasons for the agency's determination. The director may request
additional information from the requesting agency, and shall approve
or deny the exemption request within 60 days of the receipt of all
relevant information from the agency. The director also may request
that the exemption be renewed on a periodic basis, and that the
agency provide a plan for implementing paragraph (1).
(C) In determining cost-effectiveness, an agency may consider more
than one year. In determining the cost-effectiveness of accepting
payment by credit card and other payment devices, the state agency
shall consider all factors relating to costs and savings associated
with accepting credit cards and other payment devices. However, an
agency may accept payment by credit card or other payment device
notwithstanding the cost-effectiveness, if, upon the agency's
analysis, the additional level of customer service offered by these
payment methods outweighs cost considerations.
(D) "Costs" for the purposes of this subdivision shall include,
but not be limited to, the following:
(i) Amounts paid to a third party for accepting the credit card or
other payment device.
(ii) Equipment costs, including telephone and maintenance
expenses.
(iii) Labor costs of the state agency related to processing
payments made by a credit card or other payment device.
(E) "Savings" for the purposes of this subdivision shall include,
but not be limited to, the following:
(i) The use of the float by the applicable state agency.
(ii) Reduction in bank fees that would be charged for payments
made by cash and checks.
(iii) The costs of handling cash, labor savings, theft or
pilferage, reduced storage, and security and transit of handling and
holding cash.
(iv) The costs of handling checks.
(v) Dishonored check costs.
(vi) Decreased facility needs.
(vii) Increased collection of mandated payments.
(viii) Increased sales of discretionary goods and services.
(ix) Reduced paperwork.
(x) Fewer in-person transactions, especially with the use of voice
response units and kiosks.
(3) Notwithstanding paragraph (1), a state agency shall not accept
payment by credit card or other payment device if the state agency
is unable to enter into the contracts on terms that are acceptable to
the agency, or if the director acting on behalf of the agency is
unable to enter into contracts on terms that are acceptable to the
director and the agency, as are necessary to enable the agency to
accept payment by credit card or other payment device.
(4) If the Franchise Tax Board does not accept payment by credit
card or other payment device as a result of this subdivision, then
the law regarding credit card payments in existence prior to the
effective date of the legislation adding this chapter shall apply to
the Franchise Tax Board.
(b) The director may establish procedures to delegate the
authority granted under this chapter to other state agencies so that
these agencies may enter into contracts for accepting credit cards or
other payment devices on behalf of the respective agency.
(c) For entities established under Article VI of the California
Constitution, the authority of the director under this chapter shall
rest with the administrative director of those entities.
(d) Any agency that intends to accept payment by credit card or
other payment device pursuant to a master contract entered into by
the director shall transmit a letter of intent so stating to the
director.

6164. No officer or employee of a state agency, or other
individual, who in the course of his or her employment or duty has or
had access to credit card or payment device information provided to
the state agency under this chapter shall disclose or make known in
any manner information provided under this chapter or use the
information for any unauthorized purpose. Any violation of this
section shall be a misdemeanor.

6165. The Department of General Services and state agencies shall
enter into interagency agreements to reimburse the Department of
General Services for its costs in entering into contracts pursuant to
this chapter.

6166. Any state agency accepting payment by a means of credit card,
whether pursuant to this chapter or Section 19005 of the Revenue and
Taxation Code, shall, when sending a billing statement, notify each
payer permitted to make payment to that agency by means of a credit
card of his or her option of making payment by means of a credit
card. Each state agency that sends a billing statement to an
individual who is allowed to make payment to that agency by means of
a credit card shall provide either of the following on that statement
or on a document provided with the statement:
(a) A designated space on the payment form upon which the payer
can provide a credit card number, expiration date, and signature.
(b) Complete instructions as to the procedure, by means of
telephone or otherwise, that the payer must follow in order to pay by
means of a credit card.