SUMMARY--Authorizes governmental entities to contract with issuers of credit cards or debit cards to provide for acceptance of such cards by those entities for certain payments. (BDR 31-271)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to government; authorizing state and local governmental entities to contract with issuers of credit cards or debit cards to provide for the acceptance of such cards by those entities for certain payments; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 Chapter 353 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Upon approval of the state board of finance, a state agency may enter into contracts with issuers of credit cards or debit cards to provide for the acceptance of credit cards or debit cards by the agency:
(a) For the payment of money owed to the agency for taxes, interest, penalties or any other obligation; or
(b) In payment for goods or services.
2. Before a state agency may enter into a contract pursuant to subsection 1, the agency must submit the proposed contract to the state treasurer for his review and transmittal to the state board of finance.
3. If the issuer charges the state agency a fee for each use of a credit card or debit card, a contract entered into pursuant to subsection 1 must include:
(a) A provision that requires the state agency to pay the fee charged by the issuer for the use of the credit card or debit card; or
(b) A provision that authorizes the state agency to collect a service charge from the cardholder for the use of the credit card or debit card.
4. A state agency may collect a service charge from a cardholder in an amount not to exceed the fee that the issuer charged the agency for the use of the credit card or debit card unless the contract entered into pursuant to subsection 1 prohibits the collection of such a charge.
5. If, pursuant to paragraph (a) of subsection 3, the state agency is required to pay the fee charged by the issuer for each use of a credit card or debit card, the payment of such fees by the agency shall be treated as any other administrative cost of the agency.
6. As used in this section:
(a) "Cardholder" means the person or organization named on the face of a credit card or debit card to whom or for whose benefit the credit card or debit card is issued by an issuer.
(b) "Credit card" means any instrument or device, whether known as a credit card or credit plate, or by any other name, issued with or without a fee by an issuer for the use of the cardholder in obtaining money, property, goods, services or anything else of value on credit.
(c) "Debit card" means any instrument or device, whether known as a debit card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds.
(d) "Issuer" means a business organization, financial institution or authorized agent of a business organization or financial institution that issues a credit card or debit card.
(e) "State agency" means an agency, bureau, board, commission, department, division or any other unit of the executive department of state government.
Sec. 2 Chapter 354 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A local government may enter into contracts with issuers of credit cards or debit cards to provide for the acceptance of credit cards or debit cards by the local government:
(a) For the payment of money owed to the local government for taxes, interest, penalties or any other obligation; or
(b) In payment for goods or services.
2. If the issuer charges the local government a fee for each use of a credit card or debit card, a contract entered into pursuant to subsection 1 must include:
(a) A provision that requires the local government to pay the fee charged by the issuer for the use of the credit card or debit card; or
(b) A provision that authorizes the local government to collect a service charge from the cardholder for the use of the credit card or debit card.
3. A local government may collect a service charge from a cardholder in an amount not to exceed the fee that the issuer charged the local government for the use of the credit card or debit card unless the contract entered into pursuant to subsection 1 prohibits the collection of such a charge.
4. If, pursuant to paragraph (a) of subsection 2, the local government is required to pay the fee charged by the issuer for each use of a credit card or debit card, the payment of such fees by the local government shall be treated as any other administrative cost of the local government.
5. As used in this section:
(a) "Cardholder" means the person or organization named on the face of a credit card or debit card to whom or for whose benefit the credit card or debit card is issued by an issuer.
(b) "Credit card" means any instrument or device, whether known as a credit card or credit plate, or by any other name, issued with or without a fee by an issuer for the use of the cardholder in obtaining money, property, goods, services or anything else of value on credit.
(c) "Debit card" means any instrument or device, whether known as a debit card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds.
(d) "Issuer" means a business organization, financial institution or authorized agent of a business organization or financial institution that issues a credit card or debit card.
(e) "Local government" has the meaning ascribed to it in NRS 354.474.
Sec. 3 This act becomes effective on July 1, 1997.