N.Y. General Municipal Law § 5: Payment of fines, civil penalties, rent, rates, taxes, fees, charges and other amounts by credit card

§ 5. Payment of fines, civil penalties, rent, rates, taxes, fees,

charges and other amounts by credit card. (a) The following terms, when

used or referred to in this section, shall have the following meaning:

1. "Credit card" means any credit card, credit plate, charge card,

charge plate, courtesy card, debit card, other identification card,

value transfer device as defined by the state comptroller or device

issued by a person to another person which may be used to obtain a cash

advance or a loan or credit, or to purchase or lease property or

services on the credit of the person issuing the credit card or a person

who has agreed with the issuer to pay obligations arising from the use

of a credit card issued to another person.

1-a. "Card issuer" means an issuer of a credit card, charge card or

other value transfer device.

2. "Financing agency" means any agency defined as such in subdivision

eighteen of section four hundred one of the personal property law.

3. "Person" means an individual, partnership, corporation or any other

legal or commercial entity.

(b) The governing board of any local government, as that term is

defined in section ten of this article, may, by local law, ordinance or

resolution, determine that it is in the public interest and authorize

such local government to enter into agreements with one or more

financing agencies or card issuers to provide for the acceptance, by

such officers of the local government as may be designated pursuant to

subdivision (f) of this section, of credit cards as a means of payment

of fines, civil penalties, rent, rates, taxes, fees, charges, revenue,

financial obligations or other amounts, including penalties, special

assessments and interest, owed to the local government. Any such

agreement shall govern the terms and conditions upon which a credit card

proffered as a means of payment of a fine, civil penalty, rent, rate,

tax, fee, charge, revenue, financial obligation or other amount,

including penalty, special assessment or interest, shall be accepted or

declined and the manner in and conditions upon which the financing

agency or card issuer shall pay to such local government the amount of

fines, civil penalties, rent, rates, taxes, fees, charges, revenue,

financial obligations or other amounts, including penalty, special

assessment or interest, paid by means of a credit card pursuant to such

agreement. Any such agreement may provide for the payment by such local

government to such financing agency or card issuer of fees for the

services provided by such financing agency or card issuer pursuant to

such agreement, which fees may consist of a discount deducted from or

payable in respect of the amount of each such fine, civil penalty, rent,

rate, tax, fee, charge, revenue, financial obligation or other amount,

including penalty, special assessment or interest. If fees are paid by

such a discount, they shall be post-audited by the officer or board of

the local government responsible for auditing claims against the local

government.

(c) Any local government which has entered into an agreement with a

financing agency or card issuer as authorized by the provisions of

subdivision (b) of this section may accept credit cards as a means of

payment of fines, civil penalties, rent, rates, taxes, fees, charges,

revenue, financial obligations or other amounts, including penalties,

special assessment or interest, as provided in such agreement and may

pay such fees as are specified in such agreement to such financing

agency or card issuer in consideration of the services rendered by such

financing agency or card issuer thereunder. Notwithstanding any other

provision of law to the contrary, it shall be the option of the

governing board of the local government to require, as a condition of

accepting payment by credit card, that such person offering payment by

credit or charge card pay a service fee to the local government not

exceeding costs incurred by the local government in connection with the

credit or charge card payment transaction, including any fee owed by the

local government to the financing agency or card issuer arising from

that transaction.

(d) Contracts entered into pursuant to this section between local

government and financing agencies or card issuers shall be awarded in

accordance with the local government's written internal policies and

procedures governing procurements adopted pursuant to section one

hundred four-b of this chapter.

(e) The underlying debt, lien, obligation, bill, account or other

amount owed to the local government for which payment by credit card is

accepted by the local government shall not be expunged, cancelled,

released, discharged or satisfied, and any receipt or other evidence of

payment shall be deemed conditional, until the local government has

received final and unconditional payment of the full amount due from the

financing agency or card issuer for such credit card transaction.

(f) The governing board, in enacting a local law, ordinance or

resolution pursuant to this section, shall designate which of its

officers, charged with the duty of collecting or receiving moneys on

behalf of the local government, shall be authorized to accept credit

cards as a means of payment of fines, taxes, rent, rates, fees, charges,

revenue, financial obligations and other amounts, including penalties,

special assessments or interest.

(g) Under circumstances where local governments are otherwise

authorized by law to contract for the collection of fines, civil

penalties, rent, rates, taxes, fees, charges, revenue, financial

obligations or other amounts, including penalties, special assessments

or interest, such contract shall provide that the contractor accept

credit cards as a mechanism for payment.