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To amend section 301.28 of the Revised Code to modify | 1 |
the law governing payment of county expenses by a | 2 |
financial transaction device. | 3 |
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: | 6 |
(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 or any other device or method for making an | 12 |
electronic payment or transfer of funds. | 13 |
(2) "County expenses" includes fees, costs, taxes, | 14 |
assessments, fines, penalties, payments, or any other expense a | 15 |
person owes to a county office under the authority of a county | 16 |
17 | |
required to be paid under Chapter 955. of the Revised Code. | 18 |
(3)
"County | 19 |
county treasurer, county engineer, county recorder, county | 20 |
prosecuting attorney, county sheriff, | 21 |
park district and board of county commissioners, the clerk of the | 22 |
probate court, the clerk of the juvenile court, the clerks of | 23 |
court for all divisions of the courts of common pleas, and the | 24 |
clerk of the court of common pleas, the clerk of a | 25 |
county-operated municipal court, and the clerk of a county court. | 26 |
The term "county expenses" includes county expenses owed to | 27 |
the board of health of the general health district or a combined | 28 |
health district in the county. If the board of county | 29 |
commissioners authorizes county expenses to be paid by financial | 30 |
transaction devices under this section, then the board of health | 31 |
and the general health district and the combined health district | 32 |
may accept payments by financial transaction devices under this | 33 |
section as if the board were a "county official" and the district | 34 |
were a county office. However, in the case of a general health | 35 |
district formed by unification of general health districts under | 36 |
section 3709.10 of the Revised Code, this entitlement applies only | 37 |
if all the boards of county commissioners of all counties in the | 38 |
district have authorized payments to be accepted by financial | 39 |
transaction devices. | 40 |
(B) Notwithstanding any other section of the Revised Code and | 41 |
except as provided in division (D) of this section, a board of | 42 |
county commissioners may adopt a resolution authorizing the | 43 |
acceptance of payments by financial transaction devices for county | 44 |
expenses. The resolution shall include the following: | 45 |
(1) A specification of those county | 46 |
and of the county offices under those county officials that, are | 47 |
authorized to accept payments by financial transaction devices; | 48 |
(2) A list of county expenses that may be paid for through | 49 |
the use of a financial transaction device; | 50 |
(3) Specific identification of financial transaction devices | 51 |
that the board authorizes as acceptable means of payment for | 52 |
county expenses. Uniform acceptance of financial transaction | 53 |
devices among different types of county expenses is not required. | 54 |
(4) The amount, if any, authorized as a surcharge or | 55 |
convenience fee under division (E) of this section for persons | 56 |
using a financial transaction device. Uniform application of | 57 |
surcharges or convenience fees among different types of county | 58 |
expenses is not required. | 59 |
(5) A specific provision as provided in division (G) of this | 60 |
section requiring the payment of a penalty if a payment made by | 61 |
means of a financial transaction device is returned or dishonored | 62 |
for any reason. | 63 |
The board's resolution shall also designate the county | 64 |
treasurer as an administrative agent to solicit proposals, within | 65 |
guidelines established by the board in the resolution and in | 66 |
compliance with the procedures provided in division (C) of this | 67 |
section, from financial institutions, issuers of financial | 68 |
transaction devices, and processors of financial transaction | 69 |
devices, to make recommendations about those proposals to the | 70 |
board, and to assist county offices in implementing the county's | 71 |
financial transaction devices program. The county treasurer may | 72 |
decline this responsibility within thirty days after receiving a | 73 |
copy of the board's resolution by notifying the board in writing | 74 |
within that period. If the treasurer so notifies the board, the | 75 |
board shall perform the duties of the administrative agent. | 76 |
If the county treasurer is the administrative agent and fails | 77 |
to administer the county financial transaction devices program in | 78 |
accordance with the guidelines in the board's resolution, the | 79 |
board shall notify the treasurer in writing of the board's | 80 |
findings, explain the failures, and give the treasurer six months | 81 |
to correct the failures. If the treasurer fails to make the | 82 |
appropriate corrections within that six-month period, the board | 83 |
may pass a resolution declaring the board to be the administrative | 84 |
agent. The board may later rescind that resolution at its | 85 |
discretion. | 86 |
(C) The county shall follow the procedures provided in this | 87 |
division whenever it plans to contract with financial | 88 |
institutions, issuers of financial transaction devices, or | 89 |
processors of financial transaction devices for the purposes of | 90 |
this section. The administrative agent shall request proposals | 91 |
from at least three financial institutions, issuers of financial | 92 |
transaction devices, or processors of financial transaction | 93 |
devices, as appropriate in accordance with the resolution adopted | 94 |
under division (B) of this section. Prior to sending any financial | 95 |
institution, issuer, or processor a copy of any such request, the | 96 |
county shall advertise its intent to request proposals in a | 97 |
newspaper of general circulation in the county once a week for two | 98 |
consecutive weeks. The notice shall state that the county intends | 99 |
to request proposals; specify the purpose of the request; indicate | 100 |
the date, which shall be at least ten days after the second | 101 |
publication, on which the request for proposals will be mailed to | 102 |
financial institutions, issuers, or processors; and require that | 103 |
any financial institution, issuer, or processor, whichever is | 104 |
appropriate, interested in receiving the request for proposals | 105 |
submit written notice of this interest to the county not later | 106 |
than noon of the day on which the request for proposals will be | 107 |
mailed. | 108 |
Upon receiving the proposals, the administrative agent shall | 109 |
review them and make a recommendation to the board of county | 110 |
commissioners on which proposals to accept. The board of county | 111 |
commissioners shall consider the agent's recommendation and review | 112 |
all proposals submitted, and then may choose to contract with any | 113 |
or all of the entities submitting proposals, as appropriate. The | 114 |
board shall provide any financial institution, issuer, or | 115 |
processor that submitted a proposal, but with which the board does | 116 |
not enter into a contract, notice that its proposal is rejected. | 117 |
The notice shall state the reasons for the rejection, indicate | 118 |
whose proposals were accepted, and provide a copy of the terms and | 119 |
conditions of the successful bids. | 120 |
(D) A board of county commissioners adopting a resolution | 121 |
under this section shall send a copy of the resolution to each | 122 |
county | 123 |
resolution to accept payments by financial transaction devices. | 124 |
After receiving the resolution and before accepting payments by | 125 |
financial
transaction devices, a county | 126 |
provide written notification to the board of county commissioners | 127 |
of the official's intent to implement the resolution within the | 128 |
official's office. Each county office subject to the board's | 129 |
resolution adopted under division (B) of this section may use only | 130 |
the financial institutions, issuers of financial transaction | 131 |
devices, and processors of financial transaction devices with | 132 |
which the board of county commissioners contracts, and each such | 133 |
office is subject to the terms of those contracts. | 134 |
If a county office
under the authority of a county | 135 |
official is directly responsible for collecting one or more county | 136 |
expenses and the
county | 137 |
payments by financial transaction devices for one or more of those | 138 |
expenses, the office shall not be required to accept payments by | 139 |
financial transaction devices, notwithstanding the adoption of a | 140 |
resolution by the board of county commissioners under this | 141 |
section. | 142 |
Any office of a clerk of the court of common pleas that | 143 |
accepts financial transaction devices on or before July 1, 1999, | 144 |
and any other county office that accepted such devices before | 145 |
January 1, 1998, may continue to accept such devices without being | 146 |
subject to any resolution passed by the board of county | 147 |
commissioners under division (B) of this section, or any other | 148 |
oversight by the board of the office's financial transaction | 149 |
devices program. Any such office may use surcharges or convenience | 150 |
fees in any manner the county | 151 |
office determines to be appropriate, and, if the county treasurer | 152 |
consents, may appoint the county treasurer to be the office's | 153 |
administrative agent for purposes of accepting financial | 154 |
transaction devices. In order not to be subject to the resolution | 155 |
of the board of county commissioners adopted under division (B) of | 156 |
this section, a county office shall notify the board in writing | 157 |
within thirty days after March 30, 1999, that it accepted | 158 |
financial transaction devices prior to January 1, 1998, or, in the | 159 |
case of the office of a clerk of the court of common pleas, the | 160 |
clerk has accepted or will accept such devices on or before July | 161 |
1, 1999. Each such notification shall explain how processing costs | 162 |
associated with financial transaction devices are being paid and | 163 |
shall indicate whether surcharge or convenience fees are being | 164 |
passed on to consumers. | 165 |
(E) A board of county commissioners may establish a surcharge | 166 |
or convenience fee that may be imposed upon a person making | 167 |
payment by a financial transaction device. The surcharge or | 168 |
convenience fee shall not be imposed unless authorized or | 169 |
otherwise permitted by the rules prescribed by an agreement | 170 |
governing the use and acceptance of the financial transaction | 171 |
device. | 172 |
If a surcharge or convenience fee is imposed, every county | 173 |
office accepting payment by a financial transaction device, | 174 |
regardless of whether that office is subject to a resolution | 175 |
adopted by a board of county commissioners, shall clearly post a | 176 |
notice in that office and shall notify each person making a | 177 |
payment by such a device about the surcharge or fee. Notice to | 178 |
each person making a payment shall be provided regardless of the | 179 |
medium used to make the payment and in a manner appropriate to | 180 |
that medium. Each notice shall include all of the following: | 181 |
(1) A statement that there is a surcharge or convenience fee | 182 |
for using a financial transaction device; | 183 |
(2) The total amount of the charge or fee expressed in | 184 |
dollars and cents for each transaction, or the rate of the charge | 185 |
or fee expressed as a percentage of the total amount of the | 186 |
transaction, whichever is applicable; | 187 |
(3) A clear statement that the surcharge or convenience fee | 188 |
is nonrefundable. | 189 |
(F) If a person elects to make a payment to the county by a | 190 |
financial transaction device and a surcharge or convenience fee is | 191 |
imposed, the payment of the surcharge or fee shall be considered | 192 |
voluntary and the surcharge or fee is not refundable. | 193 |
(G) If a person makes payment by financial transaction device | 194 |
and the payment is returned or dishonored for any reason, the | 195 |
person is liable to the county for payment of a penalty over and | 196 |
above the amount of the expense due. The board of county | 197 |
commissioners shall determine the amount of the penalty, which may | 198 |
be either a fee not to exceed twenty dollars or payment of the | 199 |
amount necessary to reimburse the county for banking charges, | 200 |
legal fees, or other expenses incurred by the county in collecting | 201 |
the returned or dishonored payment. The remedies and procedures | 202 |
provided in this section are in addition to any other available | 203 |
civil or criminal remedies provided by law. | 204 |
(H) No person making any payment by financial transaction | 205 |
device to a county office shall be relieved from liability for the | 206 |
underlying obligation except to the extent that the county | 207 |
realizes final payment of the underlying obligation in cash or its | 208 |
equivalent. If final payment is not made by the financial | 209 |
transaction device issuer or other guarantor of payment in the | 210 |
transaction, the underlying obligation shall survive and the | 211 |
county shall retain all remedies for enforcement that would have | 212 |
applied if the transaction had not occurred. | 213 |
(I) A county | 214 |
financial transaction device payment in accordance with this | 215 |
section and any applicable state or local policies or rules is | 216 |
immune from personal liability for the final collection of such | 217 |
payments. | 218 |
Section 2. That existing section 301.28 of the Revised Code | 219 |
is hereby repealed. | 220 |