Paragraph 215.322(3)(c), F.S. allows for service fees on credit card and other electronic transactions with the state to be paid by a means other than state warrant if approved by the CFO. This rule provides approval to offset convenience fees paid ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Treasury

RULE NOS.:RULE TITLES:

69C-4.003Definitions

69C-4.0045Convenience Fees

69C-4.009Annual Reporting to the Chief Financial Officer

PURPOSE AND EFFECT: Paragraph 215.322(3)(c), F.S. allows for service fees on credit card and other electronic transactions with the state to be paid by a means other than state warrant if approved by the CFO. This rule provides approval to offset convenience fees paid by a card holder against service fees charged by a bank processing a transaction.

SUMMARY: Convenience fees to offset service fees are authorized as a method for paying service fees for credit card transactions in which the State of Florida is the payee.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: 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. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: There is no impact of the payees because the convenience fee is already charged to the payee pursuant to Section 215.322, F.S. The proposed rule simply allows off setting so that state agencies don’t have to receive the convenience fees from the processing bank and then issue a warrant to the bank to pay the fees back.

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: Tuesday, June 24, 2014, 1:30 p.m.

PLACE: Suite 440-C, Hermitage Centre, Suite 400, 1801 Hermitage Blvd., Tallahassee, Florida

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: Melisa Hevey, [phone] or [e-mail]. 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: Melisa Hevey, Chief, Bureau of Funds Management, Division of Treasury, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-0346, [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69C-4.003 Definitions.

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

(1) through (7) No change.

(8) Service Fee. A service fee is a transaction processing fee charged by a financial institution, vendor service company, or payment card company, and paid by a state agency.

Rulemaking Authority 215.322(3) FS. Law Implemented 215.322 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 9-11-11,__________.

 

69C-4.0045 Convenience Fees.

(1) through (3) No change.

(4) The use of convenience fees to offset service fees is an approved method as permitted by paragraph 215.322(3)(c), Florida Statutes, provided that fees do not exceed the total cost to the state agency and are not received by the state. An agency electing to use convenience fees to offset service fees specified in Section 215.322(3)(c), Florida Statutes, must comply with the annual reporting requirements in Rule 69C-4.009, F.A.C.

Rulemaking Authority 215.322(3) FS. Law Implemented 215.322 FS. History–New 1-27-99, Amended 9-9-01, Formerly 4C-4.0045, Amended 9-11-11,____________.

 

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 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 (5) No change.

(6) Total annual service fees paid. Provide total amount of fees remitted to the service provider, indicating the source of payment:

(a) Offset by sale of goods, services, or information; or convenience fees.

(b) through (d) No change.

(7) through (8) No change.

Rulemaking Authority 215.322(3) FS. Law Implemented 215.322 FS. History–New 12-26-88, Amended 1-27-99, 9-9-01, Formerly 4C-4.009, Amended 9-11-11,___________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Melisa Hevey, Chief, Bureau of Funds Management, 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: May 28, 2014

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 21, 2014