As Passed by the Senate

127th General Assembly Regular Session 2007-2008

Sub. S. B. No. 241

Senator Cates 

Cosponsors: Senators Carey, Mumper, Schuring, Faber, Padgett, Seitz, Niehaus, Gardner, Grendell, Kearney, Spada, Schaffer, Stivers, Harris 

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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 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
elected official other than dog registration and kennel fees	17
required to be paid under Chapter 955. of the Revised Code.	18

(3) "County elected official" includes the county auditor,	19
county treasurer, county engineer, county recorder, county	20
prosecuting attorney, county sheriff, and county coroner, county	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 elected officials who,	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 elected official in the county who is authorized by the	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 elected official shall	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 elected	135
official is directly responsible for collecting one or more county	136
expenses and the county elected official determines not to accept	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 elected official in charge of the	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 elected official or employee who accepts a	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