(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.