As Introduced

127th General Assembly Regular Session 2007-2008

S. B. No. 241

Senator Cates 

Cosponsors: Senators Carey, Mumper, Schuring, Faber, Padgett 

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A BILL

To amend section 301.28 of the Revised Code to modify

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the law governing payment of county expenses by a

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financial transaction device.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 301.28 of the Revised Code be amended	4
to read as follows:	5

Sec. 301.28.  (A) As used in this section:

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(1) "Financial transaction device" includes a credit card,	7
debit card, charge card, or prepaid or stored value card, or	8
automated clearinghouse network credit, debit, or e-check entry	9
that includes, but is not limited to, accounts receivable and	10
internet-initiated, point of purchase, and telephone-initiated	11
applications.	12

(2) "County expenses" includes fees, costs, taxes,	13
assessments, fines, penalties, payments, or any other expense a	14
person owes to a county office under the authority of a county	15
elected official other than dog registration and kennel fees	16
required to be paid under Chapter 955. of the Revised Code.	17

(3) "County elected official" includes the county auditor,	18
county treasurer, county engineer, county recorder, county	19
prosecuting attorney, county sheriff, and county coroner, and	20
county commissioners, and the clerk of the court of common pleas,	21
the clerk of a county-operated municipal court, and the clerk of a	22
county court.	23

(B) Notwithstanding any other section of the Revised Code and	24
except as provided in division (D) of this section, a board of	25
county commissioners may adopt a resolution authorizing the	26
acceptance of payments by financial transaction devices for county	27
expenses. The resolution shall include the following:	28

(1) A specification of those county elected officials who are	29
authorized to accept payments by financial transaction devices;	30

(2) A list of county expenses that may be paid for through	31
the use of a financial transaction device;	32

(3) Specific identification of financial transaction devices	33
that the board authorizes as acceptable means of payment for	34
county expenses. Uniform acceptance of financial transaction	35
devices among different types of county expenses is not required.	36

(4) The amount, if any, authorized as a surcharge or	37
convenience fee under division (E) of this section for persons	38
using a financial transaction device. Uniform application of	39
surcharges or convenience fees among different types of county	40
expenses is not required.	41

(5) A specific provision as provided in division (G) of this	42
section requiring the payment of a penalty if a payment made by	43
means of a financial transaction device is returned or dishonored	44
for any reason.	45

The board's resolution shall also designate the county	46
treasurer as an administrative agent to solicit proposals, within	47
guidelines established by the board in the resolution and in	48
compliance with the procedures provided in division (C) of this	49
section, from financial institutions, issuers of financial	50
transaction devices, and processors of financial transaction	51
devices, to make recommendations about those proposals to the	52
board, and to assist county offices in implementing the county's	53
financial transaction devices program. The county treasurer may	54
decline this responsibility within thirty days after receiving a	55
copy of the board's resolution by notifying the board in writing	56
within that period. If the treasurer so notifies the board, the	57
board shall perform the duties of the administrative agent.	58

If the county treasurer is the administrative agent and fails	59
to administer the county financial transaction devices program in	60
accordance with the guidelines in the board's resolution, the	61
board shall notify the treasurer in writing of the board's	62
findings, explain the failures, and give the treasurer six months	63
to correct the failures. If the treasurer fails to make the	64
appropriate corrections within that six-month period, the board	65
may pass a resolution declaring the board to be the administrative	66
agent. The board may later rescind that resolution at its	67
discretion.	68

(C) The county shall follow the procedures provided in this	69
division whenever it plans to contract with financial	70
institutions, issuers of financial transaction devices, or	71
processors of financial transaction devices for the purposes of	72
this section. The administrative agent shall request proposals	73
from at least three financial institutions, issuers of financial	74
transaction devices, or processors of financial transaction	75
devices, as appropriate in accordance with the resolution adopted	76
under division (B) of this section. Prior to sending any financial	77
institution, issuer, or processor a copy of any such request, the	78
county shall advertise its intent to request proposals in a	79
newspaper of general circulation in the county once a week for two	80
consecutive weeks. The notice shall state that the county intends	81
to request proposals; specify the purpose of the request; indicate	82
the date, which shall be at least ten days after the second	83
publication, on which the request for proposals will be mailed to	84
financial institutions, issuers, or processors; and require that	85
any financial institution, issuer, or processor, whichever is	86
appropriate, interested in receiving the request for proposals	87
submit written notice of this interest to the county not later	88
than noon of the day on which the request for proposals will be	89
mailed.	90

Upon receiving the proposals, the administrative agent shall	91
review them and make a recommendation to the board of county	92
commissioners on which proposals to accept. The board of county	93
commissioners shall consider the agent's recommendation and review	94
all proposals submitted, and then may choose to contract with any	95
or all of the entities submitting proposals, as appropriate. The	96
board shall provide any financial institution, issuer, or	97
processor that submitted a proposal, but with which the board does	98
not enter into a contract, notice that its proposal is rejected.	99
The notice shall state the reasons for the rejection, indicate	100
whose proposals were accepted, and provide a copy of the terms and	101
conditions of the successful bids.	102

(D) A board of county commissioners adopting a resolution	103
under this section shall send a copy of the resolution to each	104
county elected official in the county who is authorized by the	105
resolution to accept payments by financial transaction devices.	106
After receiving the resolution and before accepting payments by	107
financial transaction devices, a county elected official shall	108
provide written notification to the board of county commissioners	109
of the official's intent to implement the resolution within the	110
official's office. Each county office subject to the board's	111
resolution adopted under division (B) of this section may use only	112
the financial institutions, issuers of financial transaction	113
devices, and processors of financial transaction devices with	114
which the board of county commissioners contracts, and each such	115
office is subject to the terms of those contracts.	116

If a county office under the authority of a county elected	117
official is directly responsible for collecting one or more county	118
expenses and the county elected official determines not to accept	119
payments by financial transaction devices for one or more of those	120
expenses, the office shall not be required to accept payments by	121
financial transaction devices, notwithstanding the adoption of a	122
resolution by the board of county commissioners under this	123
section.	124

Any office of a clerk of the court of common pleas that	125
accepts financial transaction devices on or before July 1, 1999,	126
and any other county office that accepted such devices before	127
January 1, 1998, may continue to accept such devices without being	128
subject to any resolution passed by the board of county	129
commissioners under division (B) of this section, or any other	130
oversight by the board of the office's financial transaction	131
devices program. Any such office may use surcharges or convenience	132
fees in any manner the county elected official in charge of the	133
office determines to be appropriate, and, if the county treasurer	134
consents, may appoint the county treasurer to be the office's	135
administrative agent for purposes of accepting financial	136
transaction devices. In order not to be subject to the resolution	137
of the board of county commissioners adopted under division (B) of	138
this section, a county office shall notify the board in writing	139
within thirty days after March 30, 1999, that it accepted	140
financial transaction devices prior to January 1, 1998, or, in the	141
case of the office of a clerk of the court of common pleas, the	142
clerk has accepted or will accept such devices on or before July	143
1, 1999. Each such notification shall explain how processing costs	144
associated with financial transaction devices are being paid and	145
shall indicate whether surcharge or convenience fees are being	146
passed on to consumers.	147

(E) A board of county commissioners may establish a surcharge	148
or convenience fee that may be imposed upon a person making	149
payment by a financial transaction device. The surcharge or	150
convenience fee shall not be imposed unless authorized or	151
otherwise permitted by the rules prescribed by an agreement	152
governing the use and acceptance of the financial transaction	153
device.	154

If a surcharge or convenience fee is imposed, every county	155
office accepting payment by a financial transaction device,	156
regardless of whether that office is subject to a resolution	157
adopted by a board of county commissioners, shall clearly post a	158
notice in that office and shall notify each person making a	159
payment by such a device about the surcharge or fee. Notice to	160
each person making a payment shall be provided regardless of the	161
medium used to make the payment and in a manner appropriate to	162
that medium. Each notice shall include all of the following:	163

(1) A statement that there is a surcharge or convenience fee	164
for using a financial transaction device;	165

(2) The total amount of the charge or fee expressed in	166
dollars and cents for each transaction, or the rate of the charge	167
or fee expressed as a percentage of the total amount of the	168
transaction, whichever is applicable;	169

(3) A clear statement that the surcharge or convenience fee	170
is nonrefundable.	171

(F) If a person elects to make a payment to the county by a	172
financial transaction device and a surcharge or convenience fee is	173
imposed, the payment of the surcharge or fee shall be considered	174
voluntary and the surcharge or fee is not refundable.	175

(G) If a person makes payment by financial transaction device	176
and the payment is returned or dishonored for any reason, the	177
person is liable to the county for payment of a penalty over and	178
above the amount of the expense due. The board of county	179
commissioners shall determine the amount of the penalty, which may	180
be either a fee not to exceed twenty dollars or payment of the	181
amount necessary to reimburse the county for banking charges,	182
legal fees, or other expenses incurred by the county in collecting	183
the returned or dishonored payment. The remedies and procedures	184
provided in this section are in addition to any other available	185
civil or criminal remedies provided by law.	186

(H) No person making any payment by financial transaction	187
device to a county office shall be relieved from liability for the	188
underlying obligation except to the extent that the county	189
realizes final payment of the underlying obligation in cash or its	190
equivalent. If final payment is not made by the financial	191
transaction device issuer or other guarantor of payment in the	192
transaction, the underlying obligation shall survive and the	193
county shall retain all remedies for enforcement that would have	194
applied if the transaction had not occurred.	195

(I) A county elected official or employee who accepts a	196
financial transaction device payment in accordance with this	197
section and any applicable state or local policies or rules is	198
immune from personal liability for the final collection of such	199
payments.	200

Section 2. That existing section 301.28 of the Revised Code	201
is hereby repealed.	202