Notice of Proposed Rule

DEPARTMENT OF FINANCIAL SERVICES
Division of Treasury
RULE NO.: RULE TITLE:
69C-4.001: Purpose
69C-4.002: Scope
69C-4.003: Definitions
69C-4.0035: Procedures for Requesting Approval to Accept Credit Cards, Charge Cards, and Debit Cards
69C-4.004: Standard Contracts with Credit Card Service Providers
69C-4.0045: Convenience Fees
69C-4.009: Annual Reporting to the Chief Financial Officer
PURPOSE AND EFFECT: Chapter 2010-151, Laws of Florida, amended Section 215.322, F.S., to allow state agencies, the judicial branch, and local government units to also accept electronic funds transfers and also required the Chief Financial Officer (CFO) to adopt rules for acceptance of electronic funds transfers.
SUMMARY: The proposed rule amendments implement the CFO’s duties under Section 215.322, F.S., by updating the rules to include the acceptance of electronic funds transfers by state agencies and the judicial branch and to incorporate the two standard electronic payment service provider contracts by reference.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. An SERC has been prepared by the agency.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
RULEMAKING AUTHORITY: 215.322(3) FS.
LAW IMPLEMENTED: 215.322 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: July 26, 2011, 2:00 p.m.
PLACE: 1801 Hermitage Blvd., Room 440-C, Tallahassee, FL 32308
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Miriam Gray at (850)413-2783 or Miriam.Gray@MyFloridaCFO.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Miriam Gray, Financial Administrator, Bureau of Funds Management, 1801 Hermitage Blvd., Tallahassee, FL 32308, (850)413-2783

THE FULL TEXT OF THE PROPOSED RULE IS:

69C-4.001 Purpose.

The purpose of this rule chapter is to specify procedures for the establishment of an electronic payment a credit card, charge card, and debit card operation, and acceptance of electronic payments credit card, charge card, and debit card payments by state agencies and the judicial branch for goods, services, and information and to provide for the availability of the standard contract for use by local governments.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1) FS. History–New 12-22-83, Formerly 4C-4.01, Amended 12-26-88, 1-27-99, 9-9-01, Formerly 4C-4.001, Amended_________.

 

69C-4.002 Scope.

These rules govern the acceptance of electronic payments credit cards, charge cards, and debit cards by state agencies and the judicial branch, and establish procedures for the following functions:

(1) Providing a process for state agencies and the judicial branch to request approval from the Chief Financial Officer for electronic payment credit card, charge card, and debit card acceptance, and procedures for obtaining a recommendation from the Agency for Enterprise Information Technology when the Internet or other related collection media are used;

(2) through (3) No change.

(4) Permitting an agency or officer accepting electronic payments payment by credit card, charge card, or debit card to impose a convenience fee upon the person making the payment;

(5) Submitting information to the Chief Financial Officer concerning the acceptance of electronic payments credit cards, charge cards, or debit cards by all state agencies or the judicial branch.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1), (2), (3) FS. History–New 12-22-83, Formerly 4C-4.02, Amended 12-26-88, 1-27-99, 9-9-01, Formerly 4C-4.002, Amended __________.

 

69C-4.003 Definitions.

As used in this rule chapter, the following terms are defined:

(1) Card. A credit card, charge card, or debit card that is accepted by a state agency or the judicial branch for payment to purchase goods, services, or information Financial Institution. A “financial institution” shall mean a qualified public depository as defined in Section 280.02, F.S.

(2) Convenience Fees. A convenience fee is a fixed rate or variable rate charge assessed by a state agency or the judicial branch to a credit card, debit card or charge card payment to help defray the cost of a unique transaction. Merchant. Any state agency or the judicial branch that accepts credit cards, charge cards, or debit cards.

(3) Electronic Check. A form of payment made over the Internet that is designed to perform the same function as a conventional paper check. Card. A credit card, charge card, or debit card that is accepted by a merchant for payment to purchase goods, services, or information.

(4) Electronic Funds Transfer. Refers to both Automated Clearing House (ACH) and Wire Transfer funds. Convenience Fees. A convenience fee is a fixed rate or variable rate charge assessed by a state agency or the judicial branch to a credit card, debit card or charge card payment to help defray the cost of a unique transaction.

(5) Electronic Payments. Payments received through the acceptance of credit cards, charge cards, debit cards, electronic checks, or other electronic funds transfer. Other Appropriate Intermediaries. Any entity that is contracted to facilitate the processing of credit cards, charge cards, and debit cards payments on behalf of a state agency, the judicial branch, or a unit of local government.

(6) Financial Institution. A financial institution shall mean a qualified public depository as defined in Section 280.02, F.S.

(7) Other Appropriate Intermediaries. Any entity that is contracted to facilitate the processing of electronic payments on behalf of a state agency, the judicial branch, or a unit of local government.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1), (2), (3) FS. History–New 12-22-83, Formerly 4C-4.03, Amended 12-26-88, 1-27-99, 9-9-01, Formerly 4C-4.003, Amended __________.

 

69C-4.0035 Procedures for Requesting Approval to Accept Electronic Payments through the Use of Credit Cards, Charge Cards, and Debit Cards, and Electronic Checks.

(1) A state agency or the judicial branch desiring to accept electronic payments through the use of by credit cards, charge cards, or debit cards, or electronic checks shall submit a written request proposal to the State Chief Financial Officer. In addition to submission of a written request to accept cards, it is recommended that the requester consult with the Chief Financial Officer to discuss arrangement of an oral presentation. Each written request shall include:

(a) The type of fees being collected.

(b) The locations where the payments card will be accepted.

(c) The method of acceptance, such as card reader/swipe, eElectronic cCash rRegister/PC, mail, telephone, automated response unit, self service terminal, the Internet, or other.

(d) through (e) No change.

(2) No change.

(3) When the Internet or other related electronic methods are to be used as the collection medium, the Chief Financial Officer will obtain the recommendation of the Agency for Enterprise Information Technology as to whether to approve the request with regard to the process or procedure to be used.

(4) The application package, Form DFS-J2-1475, Request for Approval to Accept Electronic Payments and Cost Benefit Summary Credit Cards, Charge Cards, and Debit Cards, Revised 2/11 Effective 9/1/01, which is hereby incorporated by reference, may be obtained by contacting the Bureau of Funds Management, Division of Treasury, 200 E. Gaines Street, Tallahassee, Florida 32399, or make a request directly from the Treasury website at: http://www.fltreasury.org/. Requests may be made by electronic mail.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1), (2), (3) FS. History–New 1-27-99, Amended 9-9-01, Formerly 4C-4.0035, Amended__________.

 

69C-4.004 Standard Contracts with Electronic Payment Credit Card Service Providers.

(1) Contractual arrangements in any form between a state agency or the judicial branch and a financial institution or other appropriate intermediaries to process electronic credit, charge, or debit card payments require the approval of the Chief Financial Officer.

(2)(a) The Chief Financial Officer has developed standard contracts for electronic payment services with the following service providers:

1. Bank of America, N.A., for Visa and Master Card (Electronic Payments Receipt System Provider Contract), current contract period of December 31, 2010 through December 30, 2012; and for Discover Financial Services, LLC (Electronic Payments Receipt System Provider Contract), current contract period of June 1, 2011 through December 30, 2012.

2. American Express Travel Related Services Company, Inc. (Agreement for American Express® Card Acceptance), current contract period of June 30, 2010 through June 29, 2015.

(b) Each of tThe standard contracts for electronic payment services, which are is hereby adopted and incorporated by reference, established by the Chief Financial Officer with a service provider, specifies requirements for operation of an electronic payment credit card, charge card, and debit card processing system. The mechanisms and systems enable state agencies, the judicial branch, and local governments to accept and process electronic merchant transactions through credit cards, charge cards, debit cards and electronic checks, provide prompt authorizations, and deliver collected funds to the designated bank account of a financial institution.

(b) Contractual arrangements with the standard contract service provider(s) are made by completing Form DFS-J2-1506, Subscription Agreement, Effective 9/1/01, and Form DFS-J2-1505, Internet Information Profile Form, Effective 9/1/01, bothof which are hereby incorporated by reference, and are available from Bureau of Funds Management, Division of Treasury, Tallahassee, Florida. Requests may be made by electronic mail.

(3) A state agency or the judicial branch must use the standard contract established by the Chief Financial Officer for acceptance of electronic payments by credit card, charge card, or debit card, and electronic check or obtain authorization from the Chief Financial Officer to use another contractor. If an alternative contractor is desired, the state agency or judicial branch shall should present justification to the Chief Financial Officer as to why the standard contract is not acceptable and receive approval from the Chief Financial Officer before seeking an alternative contractor. Or, the requesting agency may complete the procurement process contingent upon approval of the Chief Financial Officer to use an alternative service provider and terms of another agreement. An alternate agreement A substitute agreement must meet the terms, conditions, and specifications provided for in the standard contract relative to pricing, reporting, reconciliation, settlement, and funds availability. The Chief Financial Officer will consider unique requirements of a state agency or the judicial branch that are not provided for in the standard contract in making a determination whether to approve an alternative contractor.

(4) Contracts must specify that proceeds of credit cards, charge cards, and debit cards, and electronic checks (settlement) shall be delivered to the designated state bank account within 48 hours after completion of the transaction.

(5) A copy of the standard contract may be obtained by contacting the Bureau of Funds Management, Division of Treasury, 200 East Gaines Street, Tallahassee, Florida 32399, or make a request directly from the Treasury website at: http://www.fltreasury.org/.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1), (3) FS. History–New 12-22-83, Formerly 4C-4.04, Amended 1-26-88, 1-27-99, 9-9-01, Formerly 4C-4.004, Amended__________.

 

69C-4.0045 Convenience Fees.

(1) A convenience fee may not be imposed if prohibited by state law or the regulations of the specific card company(s) being used by the state agency or the judicial branch card company regulations.

(2) through (3) No change.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1), (3) FS. History–New 1-27-99, Amended 9-9-01, Formerly 4C-4.0045, Amended__________.

 

69C-4.009 Annual Reporting to the Chief Financial Officer.

State agencies shall submit the following information to the Chief Financial Officer: Within 30 days of the end of the state fiscal year, state agencies or the judicial branch with an established electronic payment credit card, charge card, or debit card operation shall file an annual report with the Chief Financial Officer containing the following information for each type of transaction related to the fiscal year just ended.

(1) through (7) No change.

Rulemaking Specific Authority 215.322(3) FS. Law Implemented 215.322(1), (2), (3) FS. History–New 12-26-88, Amended 1-27-99, 9-9-01, Formerly 4C-4.009, Amended_________.


NAME OF PERSON ORIGINATING PROPOSED RULE: Miriam Gray, Financial Administrator, Division of Treasury, Department of Financial Services
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer, Department of Financial Services
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 14, 2011
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: April 15, 2011