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Proposed Rules: Closed to Comments

Agency:
Comment By: 
Thursday, August 23, 2018
Proposed Rules Content: 

STATEMENT OF BASIS AND PURPOSE

Section 5(c) of the General Municipal Law and section 11-105(3) of the Administrative Code of the City of New York authorizes the City to charge and collect a reasonable and uniform fee as a condition of accepting credit and debit cards as means of payment of a fine, civil penalty, tax, fee, rent, rate, charge or other amount owed to the City. These laws require that the fee not exceed the cost incurred by the City in connection with such credit and debit card transactions, including any fee payable by the City to the card issuer.

In 2013 the Department of Finance (DOF) adopted rules establishing a consistent policy for accepting credit card payments and a uniform fee of 2.49% to defray the cost incurred by the City from credit card transactions. DOF is proposing to reduce this uniform fee to 2% which will continue to cover the cost incurred by the City in connection with such credit card transactions.

This reduction in the uniform credit card fee will not apply to credit card payments made to a covered city agency unless such covered city agency determines that charging and collecting a uniform fee of 2% does not negatively affect their operations or services to the public. A “covered” city agency is a mayoral agency described by section 385 of the New York City Charter, and other agencies listed in the current rule. Other non-covered City agencies could, via rulemaking, opt into the rule.

Subject: 

Revised Fee for Using Credit and Debit Cards

Location: 
NYC Department of Finance, Legal Affairs Division
345 Adams Street, 3rd Floor
Brooklyn, NY 11201
Contact: 

Sign up before the hearing by calling Joan Best at (718) 488-2007, or submit comments through the NYC rules website: http://rules.cityofnewyork.us. or email comments to laroset@finance.nyc.gov. or mail comments to NYC Department of Finance, Legal Affairs Division, 345 Adams Street, 3rd Floor, Brooklyn, N.Y. 11201, Attn: Timothy LaRose. Also you can fax comments to NYC Department of Finance, Attn: Timothy LaRose, at (718) 488-2491.

Download Copy of Proposed Rule (.pdf): 

Adopted Rules: Closed to Comments

Adopted Rules Content: 


Statement of Basis and Purpose of Rule

 On October 2, 2007 Mayor Bloomberg issued Executive Order 106 (E.O. 106), which calls for the City to implement a unified billing, payment, and collection strategy.  E.O. 106 requires all City agencies to establish a system for accepting credit and debit card payments for fees, fines, sales of products, and any other suitable transactions. 

 

To implement this order, the Commissioner of Finance adopted a rule that establishes a consistent policy for accepting credit and debit card payments and a uniform fee to defray the cost incurred by the City from credit and debit card transactions.  The rule requires that City agencies covered by the rule charge a nonrefundable fee of 2.49% of the amount paid for credit and debit card transactions.

 

The rule does not apply to checks, money orders, cash, or other forms of electronic payments such as eChecks.  These forms of payment are accepted without a fee.  The rule also includes exceptions for certain agencies and charges.  This rule creates two additional exceptions.

 

First, it adds an exception for credit and debit card payments paid to the Department of Parks and Recreation for tennis permits, summer camps, and recreation center memberships, because these payments are processed through a third party service, and the City does not directly incur any additional credit or debit card related expenses when accepting them.

 

Second, in response to a comment received, it adds an exception for credit and debit card payments owed for child support, because the City does not incur the administrative costs associated with these payments.  This second exception was not included in the rule’s original proposal.

 

The Department of Finance’sauthority for these rules is found in New York General Municipal Law § 5(c), New York City Administrative Code § 11-105, and New York City Charter §§ 1043 and 1504.

Effective Date: 
Fri, 02/07/2014

Adopted Rules: Closed to Comments

Adopted Rules Content: 

 

 

Statement of Basis and Purpose

 

 

On October 2, 2007 Mayor Bloomberg issued Executive Order 106 (EO 106) which calls for the City to implement a unified billing, payment, and collection strategy.  EO 106 also requires all City agencies to establish and implement a system for accepting credit and debit card payments for fees, fines, sales of products and any other suitable transactions.

 

To further implement this policy, the Commissioner of Finance is adopting a rule that establishes a consistent policy for accepting credit card payments and a uniform fee to defray the cost incurred by the City from credit card transactions.

 

Section 5(c) of the General Municipal Law and section 11-105(3) of the Administrative Code of the City of New York authorize the City to charge and collect a reasonable and uniform fee as a condition of accepting a credit and debit cards as means of payment of a fine, civil penalty, tax, fee, rent, rate, charge or other amount owed to the City.  These laws require that the fee not exceed the cost incurred by the City in connection with such credit and debit card transactions, including any fee payable by the City to the card issuer.

 

Section 1504 of the New York City Charter requires the New York City Department of Finance to perform those functions and operations of the City that relate to the administration and collection of taxes, assessments and charges imposed by the City. Pursuant to that authority, the Department of Finance is authorized to promulgate rules concerning a fee as a condition of accepting a credit or debit card for payment of City charges.

 

The rule applies to “covered” City agencies, defined as mayoral agencies described by section 385 of the New York City Charter, and to other agencies listed in the proposed rule.  Other non-covered City agencies could, via rulemaking, opt into the rule.

 

The amendment requires that covered City agencies charge a nonrefundable fee of 2.49% of the amount paid for credit and debit card transactions. The amendment does not apply to checks, money orders, cash or other forms of electronic payments such as eChecks -- these forms of payment will be accepted without a fee.

 

The fee will be refunded when the credit card payment was the result of certain technical errors, not caused by the customer, such as a duplication of a charge or an erroneous entry by a covered agency. The fee will also be refunded when the charge resulted from a fraudulent payment not made by the customer where the customer notifies the agency of the fraudulent payment.

 

The fee will not be imposed for credit or debit card payments:

·        for parking time purchased from a “muni-meter,” because the administrative expense of processing the fee from often small purchases of parking time is not cost effective;

·        for retail transactions for the sale of merchandise sold by a payee agency, such as the sale of merchandise at the CityStore;

·        for payments made as donations, except when the donation is paid as part of an existing transaction for which a fee is charged;

·        for re-payments of Medicaid, Cash Assistance, or Supplemental Nutrition Assistance Program benefits for over-payments by any of these programs,  and for payments made by beneficiaries to reduce their income in order to qualify for eligibility for Medicaid, because the administrative costs associated with these payments can be absorbed by state and federal agencies;

·        for fees paid for emergency medical ambulance services as these credit card transaction costs have already been incorporated into the cost of operating the City's emergency services;

·        for birth and death certificates issued by the Department of Health and Mental Hygiene's Vital Records Bureau because these records are processed through a third party service, and the City does not incur any additional credit card related expenses, and where credit card is the only means of payment permitted for such charge.

 

A particular credit or debit card will not be accepted for payment if that particular credit or debit card does not allow for charging convenience fees.

 

The rule phases in the fee for two groups of agencies listed in the rule. The agencies in the first group will start complying with the rule 13 months after its final publication in the City Record. The agencies in the second group will start complying with the rule 19 months after its final publication in the City Record.  These timeframes will allow the Department of Finance to work with all of the agencies to ensure that the new fee is implemented without interrupting their day-to-day operations or causing reporting, reconciliation, or fiscal issues.  An agency may start complying with the rule earlier if it notifies the Department of Finance that implementation would not materially impede the agency’s operations or services to the public.  If needed, agencies in both groups that are being phased in could obtain a delay in charging and collecting the fee of up to six months of additional time beyond the 13-month and 19-month timeframes that would otherwise apply.

 

 

Effective Date: 
Mon, 07/08/2013

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Friday, December 20, 2013
Proposed Rules Content: 

 
Statement of Basis and Purpose of Proposed Rule

 

 On October 2, 2007 Mayor Bloomberg issued Executive Order 106 (E.O. 106), which calls for the City to implement a unified billing, payment, and collection strategy.  E.O. 106 requires all City agencies to establish a system for accepting credit and debit card payments for fees, fines, sales of products, and any other suitable transactions. 

 

To implement this order, the Commissioner of Finance adopted a rule that establishes a consistent policy for accepting credit and debit card payments and a uniform fee to defray the cost incurred by the City from credit and debit card transactions.  The rule requires that City agencies covered by the rule charge a nonrefundable fee of 2.49% of the amount paid for credit and debit card transactions.

 

The rule does not apply to checks, money orders, cash, or other forms of electronic payments such as eChecks.  These forms of payment are accepted without a fee.  The rule also includes exceptions for certain agencies and charges.  This proposed rule adds to the exceptions credit and debit card payments paid to the Department of Parks and Recreation for tennis permits, summer camps, and recreation center memberships, because these payments are processed through a third party service, and the City does not directly incur any additional credit or debit card related expenses when accepting them.

 

The Department of Finance’sauthority for these rules is found in New York General Municipal Law § 5(c), New York City Administrative Code § 11-105, and New York City Charter §§ 1043 and 1504.

 

Subject: 

Amendment to Rules for Credit and Debit Card Fees

Location: 
NYC DOF Public Hearing Room
345 Adams Street 3rd Floor
Brooklyn, NY 11201
Contact: 

Ms. Joan Best at 718 403-3669

Download Copy of Proposed Rule (.pdf):