New York Laws
Article 2 - General Fiscal Provisions
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.