Section 6163 Of Chapter 2.6. State Payment Card Act From California Government Code >> Division 7. >> Title 1. >> Chapter 2.6.
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.