The proposed rule updates certain information regarding standard contracts to be used by state agencies when signing participation agreements with service providers for the processing of electronic payments. References to one standard contract ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Treasury

RULE NO.:RULE TITLE:

69C-4.004Standard Contracts with Electronic Payment Service Providers

PURPOSE AND EFFECT: The proposed rule updates certain information regarding standard contracts to be used by state agencies when signing participation agreements with service providers for the processing of electronic payments. References to one standard contract reflect changes that have been incorporated into the current contract. The proposed rule also deletes language relating to a standard contract that is no longer in force. Certain technical changes are also included in the proposed rule.

SUMMARY: The proposed rule adopts and incorporates by reference current standard contracts required for use by state agencies, as approved by the Chief Financial Officer.

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 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: A preliminary economic analysis prepared by the Department determined that the proposed rule’s potential economic impact did not exceed any of the criteria established in subsection 120.541(1), F.S., and is therefore not subject to legislative ratification pursuant to subsection 120.541(3), F.S.

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: Thursday, November 7, 2013, 2:00 p.m.

PLACE: Suite 440-C, Hermitage Centre, 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 of Funds Management, 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-4.004 Standard Contracts with Electronic Payment Service Providers.

(1) No change.

(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., and Banc of America Merchant Services, LLC, for Visa, and Master Card, and Discover (ePayment Solutions and Services Electronic Payments Receipt System Provider Contract), current contract period of June 12, 2013, December 31, 2010 through June 12, 2018 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 the standard contracts for electronic payment services, which are hereby incorporated by reference, http://www.flrules.org/Gateway/reference.asp?No=Ref-00554, specifies requirements for operation of an electronic payment processing system. The mechanisms and systems enable state agencies, the judicial branch, and local governments to accept and process electronic 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.

(3) No change.

(4) Contracts must specify that proceeds of credit cards, charge cards, debit cards, and electronic checks (settlement) shall be delivered to the designated state bank account within 2 days 48 hours after completion of the transaction.

(5) No change.

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

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Melisa Hevey, Chief of Funds Management, 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: October 9, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 26, 2013