N.Y. State Finance Law § 4-a: Electronic value transfer program

§ 4-a. Electronic value transfer program. 1. Definitions. As used in

this section the following terms shall have the following meanings:

a. "Electronic value transfer device" means a credit card, debit card,

charge card, electronic fund transfer or other electronic value transfer

mechanism approved by the electronic value transfer administrator.

b. "Device issuer" means an issuer of an electronic value transfer

device.

c. "Electronic value transfer" means any transfer of funds which is

initiated directly or indirectly by the use of an electronic value

transfer device so as to order, instruct or authorize a financing

agency, device issuer or processor to initiate a transaction in any

manner which results in a payment to a state agency.

d. "Electronic value transfer administrator" means a state agency

designated by the governor to administer electronic value transfer

programs which shall have the authority, duties, and responsibilities

granted pursuant to this section.

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

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

extent not inconsistent with this chapter.

f. "Charge back" means a credit to the device user from an electronic

value transfer transaction of the amount of the transaction in question

including, but not limited to, duplicate or other erroneous payments.

g. "Device user" means a person using an electronic value transfer

device pursuant to this section.

h. "Processor" means an entity which manages the physical system,

authorizes acceptance of electronic value transfer transactions and/or

arranges for fund transfers or customer billings.

i. "State agency" means any department, board, bureau, division,

commission, committee, council, office of the state, or other

governmental entity with statewide jurisdiction.

2. Electronic value transfer administrator. The electronic value

transfer administrator shall have the following authority, duties, and

responsibilities: to establish a statewide policy and direction for

electronic value transfer programs; to facilitate and oversee the

state's electronic value transfer programs with primary responsibility

for their effective and efficient implementation, operation and

administration; to issue guidelines for the development of plans

required to be submitted pursuant to this section, for the collection of

payments by electronic value transfer devices and the associated

agreements with device issuers, processors and financing agencies; to

negotiate directly or in conjunction with other state agencies

agreements with financing agencies, device issuers, or processors; and

to determine in conjunction with state agencies the cost benefit to the

state for utilizing alternative payment mechanisms. The electronic value

transfer administrator may exempt a state agency, where it is in the

best interest of the state, from any policy or guideline issued pursuant

to this section. Authorization for the payment of any amount by means of

an electronic value transfer device pursuant to this section shall be in

addition to any existing authority of state agencies to accept payment

by other means.

3. State agency collection of payments. Each state agency is

authorized, subject to the approval of the electronic value transfer

administrator, and the director of the budget, to collect payments of

fines, fees, rates, charges, taxes, interest penalties, special

assessments, revenue, financial obligations or other amounts by

electronic value transfer devices, consistent with the statewide

policies and guidelines established by the electronic value transfer

administrator. Such approval shall be based upon a plan submitted to the

electronic value administrator and the director of the budget. The plan

shall outline the costs and benefits of establishing an electronic value

transfer program, indicate the type of alternative payment mechanisms

proposed, and notwithstanding any law to the contrary, may include

provisions for surcharges which shall not be state money, to pay for

transaction costs of the financing agency, device issuers, or processor

associated with the electronic value transfer. The state shall notify

the device user of the amount or percentage of the surcharge.

4. Electronic value transfer agreements. Consistent with article

eleven of this chapter, one or more state agencies are authorized to

enter directly or collectively into agreements or to utilize centralized

service contracts with one or more financing agencies, device issuers,

or processors to provide for the acceptance by a state agency of

electronic value transfer as a means of payment for fines, fees, rates,

charges, taxes, interest, penalties, special assessments, revenue,

financial obligations and other amounts. Any such agreement shall govern

the terms and conditions upon which an electronic value transfer device

proferred as a means of payment shall be accepted or declined and the

manner in, and conditions upon, which the financing agency, device

issuer or processor shall pay to such state agency the amount of

payments collected by means of an electronic value transfer device

pursuant to such agreement. Any agreement entered into shall include a

term and condition that the financing agency, device issuer or processor

shall not be authorized to charge back to the device user except as

expressly provided in such agreement. Any state agency which has entered

into an agreement with a financing agency, device issuer or processor,

as authorized by the provisions of this section, may accept electronic

value transfer as a means of payment as specified by the state agency in

the agreement. The state agency may pay such fees, subject to an

appropriation, as may be specified in such agreement with such financing

agency, device issuer or processor in consideration of the services

rendered by such financing agency, device issuer or processor,

thereunder. Provided, however, in no event, shall there be a reduction

in any payment due to the state of the amounts authorized to be

collected pursuant due to subdivision three of this section.

5. Payment. The underlying debt, lien, obligation, bill, account or

other amount owed to the state agency for which payment by electronic

value transfer device is accepted by the state agency shall not be

expunged, canceled, released, discharged or satisfied, and any receipt

or other evidence of payment shall be deemed conditional, until the

state agency has received final and unconditional payment of the full

amount due from the financing agency, device issuer or processor for

such electronic value transfer device transaction. Any such expunction,

cancellation, release, discharge or satisfaction shall not be deemed to

expunge, cancel, release, discharge or satisfy any amount which is not

paid to the financing agency, device issuer or processor for such

electronic value transfer device transaction.

6. Access to information. Nothing contained in this section shall be

deemed to grant access to information where such information is

otherwise protected by law from access.