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Illinois General Assembly· SB 3321Governor Approved

LOC GOV-CREDIT CARD AGREEMENTS, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Illinois General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
SB3321 Enrolled                      LRB104 18571 RTM 32014 b

1  AN ACT concerning local government.

2  Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4  Section 5. The Local Governmental Acceptance of Credit

5 Cards Act is amended by changing Section 20 as follows:

6  (50 ILCS 345/20)

7  Sec. 20. Election by local governmental entities to accept

8 credit cards.

9  (a) The decision whether to accept credit card payments

10 for any particular type of obligation shall be made by the

11 governing body of the local governmental entity that has

12 general discretionary authority over the manner of acceptance

13 of payments. The governing body may adopt reasonable rules

14 governing the manner of acceptance of payments by credit card.

15 Except as provided in subsection (b) of Section 20-25 of the

16 Property Tax Code, no decision to accept credit card payments

17 under this Act shall be made until the governing body has

18 determined, following a public hearing held not sooner than 10

19 nor later than 30 days following public notice of the hearing,

20 that the acceptance of credit card payments for the types of

21 authorized obligations specified in the public notice is in

22 the best interests of the citizens and governmental

23 administration of the local governmental entity or community
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1 college and of the students and taxpayers thereof.

2   (b) The governing body of the entity accepting payment by

3 credit card may enter into agreements with one or more

4 financial institutions or other service providers to

5 facilitate the acceptance and processing of credit card

6 payments. Such agreements shall identify the specific services

7 to be provided, an itemized list of the fees charged, and the

8 means by which each such fee shall be paid. Such agreements may

9 include a discount fee to cover the costs of interchange,

10 assessments and authorizations, a per item processing fee for

11 the service provider, and any other fee, including a payment

12 of a surcharge or convenience fee, that may be applicable to

13 specific circumstances. Any agreement for acceptance of

14 payments by credit cards may be canceled by the governmental

15 entity upon giving reasonable notice of intent to cancel. No

16 agreement or contract with a local governmental entity may

17 prohibit or discriminate against the use of the State

18 Treasurer's E-Pay program under the State Treasurer Act or any

19 other payment processing system that the local governmental

20 entity has procured. Nothing in this subsection prevents a

21 local governmental entity from entering into a contract with a

22 financial institution that is in compliance with federal and

23 State laws prohibiting the tying of financial services by such

24 financial institution.

25  (c) An entity accepting payments by credit card may pay

26 amounts due a financial institution or other service provider
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1 by (i) paying the financial institution or other service

2 provider upon presentation of an invoice or (ii) allowing the

3 financial institution or other service provider to withhold

4 the amount of the fees from the credit card payment. A discount

5 or processing fee may be authorized whenever the governing

6 body of the entity determines that any reduction of revenue

7 resulting from the discount or processing fee will be in the

8 best interest of the entity. Items that may be considered in

9 making a determination to authorize the payment of fees or the

10 acceptance of a discount include, but are not limited to,

11 improved governmental cash flows, reduction of governmental

12 overhead, improved governmental financial security, a

13 combination of these items, and the benefit of increased

14 public convenience. No payment to or withheld by a financial

15 institution or other service provider may exceed the amounts

16 authorized under subsection (b) of Section 25.

17  (d) Unless specifically prohibited by an ordinance or rule

18 adopted by the governing body of the local governmental

19 entity, a person may pay multiple tax bills in a single

20 transaction.

21 (Source: P.A. 96-1248, eff. 7-23-10.)

22  Section 99. Effective date. This Act takes effect upon

23 becoming law.
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