First Regular Session
Sixty-second General Assembly
LLS NO. 99-0053.01 Jason Gelender HOUSE BILL 99-1028
STATE OF COLORADO
BY REPRESENTATIVE Gotlieb
TRANSPORTATION & ENERGY
A BILL FOR AN ACT
101 CONCERNING AUTHORIZING THE DEPARTMENT OF REVENUE TO ACCEPT
102 ADDITIONAL FORMS OF PAYMENT FOR PAYMENT OF MONEYS
103 RELATING TO THE OPERATION OF MOTOR VEHICLES.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Transportation Legislation Review Committee. Allows the
department of revenue to accept credit and debit card payments for fees,
taxes, and fines payable to the department and related to the operation of
motor vehicles. Allows the department to contract with a third-party
provider of credit or debit card processing services for the processing of
such payments.
Allows the department to impose and the department or any
third-party provider operating under a contract with the department for
the processing of credit or debit card payments for fees, taxes, and fines
to collect a surcharge on persons making such payments. Requires the
amount of the surcharge to be disclosed to such persons. States that such
persons shall be allowed to avoid the surcharge by paying by cash, check,
or similar means. States that the amount of the surcharge shall not exceed
such amount as is necessary to defray the additional cost to the
department of accepting credit or debit card payments. Makes
conforming amendments to the "Uniform Consumer Credit Code".
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 2 of article 1 of title 42, Colorado Revised
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
2 read:
3 42-1-220. Legislative declaration - payment of fees, taxes, and
4 fines with credit or charge cards. (1) THE GENERAL ASSEMBLY HEREBY
5 FINDS AND DECLARES THAT:
6 (a) AT THE PRESENT TIME, THE DEPARTMENT OF REVENUE ONLY
7 ACCEPTS CASH, CHECKS, OR SIMILAR MEANS OF PAYMENT FOR THE
8 PAYMENT OF FEES, TAXES, AND FINES RELATED TO THE OPERATION OF A
9 MOTOR VEHICLE BECAUSE THE DEPARTMENT HAS BEEN PROHIBITED FROM
10 DEFRAYING THE ADDITIONAL COSTS OF ACCEPTING CREDIT OR DEBIT CARD
11 PAYMENTS BY IMPOSING A SURCHARGE ON PERSONS WHO ELECT TO USE A
12 CREDIT OR DEBIT CARD TO PAY SUCH FEES, TAXES, OR FINES;
13 (b) GRANTING THE DEPARTMENT THE AUTHORITY TO ACCEPT
14 CREDIT OR DEBIT CARDS FOR THE PAYMENT OF SUCH FEES, TAXES, AND
15 FINES WOULD MAKE THE DEPARTMENT MORE EFFICIENT AND IMPROVE THE
16 CUSTOMER SERVICE PROVIDED BY THE DEPARTMENT BY ALLOWING MUCH
17 OF THE DEPARTMENT'S ROUTINE BUSINESS TO BE CONDUCTED THROUGH
18 ELECTRONIC OR TELEPHONE TRANSACTIONS;
19 (c) VEHICLE OWNERSHIP TAXES AND REGISTRATION FEES HAVE
20 INCREASED AS VEHICLE PRICES HAVE INCREASED AND MANY COLORADO
21 RESIDENTS MAY PREFER TO FINANCE THE PAYMENTS OF SUCH TAXES AND
22 FEES WITH A CREDIT CARD OR AVOID CHECK WRITING BY USING A CREDIT
23 OR DEBIT CARD; AND
24 (d) IT IS IN THE BEST INTEREST OF ALL COLORADANS TO ALLOW THE
25 DEPARTMENT TO ACCEPT CREDIT OR DEBIT CARD PAYMENTS FOR THE FEES,
26 TAXES, AND FINES PAYABLE TO THE DEPARTMENT PURSUANT TO THE
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1 PROVISIONS OF THIS TITLE.
2 (2) THE DEPARTMENT MAY ALLOW ANY FEES, TAXES, OR FINES
3 PAYABLE TO THE DEPARTMENT AND RELATED TO THE OPERATION OF A
4 MOTOR VEHICLE TO BE PAID BY CREDIT OR DEBIT CARD IN LIEU OF
5 PAYMENT BY CASH, CHECK, OR SIMILAR MEANS. THE DEPARTMENT MAY
6 PROCESS SUCH CREDIT OR DEBIT CARD PAYMENTS DIRECTLY OR MAY
7 CONTRACT WITH A THIRD-PARTY PROVIDER OF CREDIT OR DEBIT CARD
8 PROCESSING SERVICES FOR THE PROCESSING OF SUCH PAYMENTS IN
9 ACCORDANCE WITH LAW.
10 (3) THE DEPARTMENT MAY IMPOSE, AND THE DEPARTMENT OR ANY
11 THIRD-PARTY PROVIDER OPERATING UNDER A CONTRACT WITH THE
12 DEPARTMENT TO PROCESS CREDIT OR DEBIT CARD PAYMENTS OF FEES,
13 TAXES, OR FINES PAYABLE TO THE DEPARTMENT MAY COLLECT, AT THE
14 TIME OF PAYMENT, A SURCHARGE FOR THE PRIVILEGE OF USING A CREDIT
15 OR DEBIT CARD. THE AMOUNT OF THE SURCHARGE SHALL BE DISCLOSED
16 TO THE PERSON PAYING FEES, TAXES, OR FINES TO THE DEPARTMENT PRIOR
17 TO PAYMENT BEING MADE, AND SUCH PERSON SHALL BE ALLOWED TO
18 MAKE PAYMENT BY CASH, CHECK, OR SIMILAR MEANS IF HE OR SHE DOES
19 NOT WISH TO PAY THE SURCHARGE. THE AMOUNT OF THE SURCHARGE
20 SHALL NOT EXCEED SUCH AMOUNT AS IS NECESSARY TO DEFRAY THE
21 ADDITIONAL COST TO THE DEPARTMENT OF ACCEPTING CREDIT OR DEBIT
22 CARD PAYMENTS.
23 SECTION 2. 5-2-109 (3), Colorado Revised Statutes, is amended
24 to read:
25 5-2-109. Definition: "credit service charge". (3) (a) No seller
26 or lessor in any sales or lease transaction or any company issuing credit
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1 or charge cards may impose a surcharge on a holder who elects to use a
2 credit or charge card in lieu of payment by cash, check, or similar means.
3 A surcharge is any additional amount imposed at the time of the sales or
4 lease transaction by the merchant, seller, or lessor that increases the
5 charge to the buyer or lessee for the privilege of using a credit or charge
6 card. For purposes of this section, charge card includes those cards
7 pursuant to which unpaid balances are payable on demand.
8 (b) FOR PURPOSES OF THIS SUBSECTION (3), THE PAYMENT OF FEES,
9 TAXES, OR FINES PAYABLE TO THE DEPARTMENT OF REVENUE AND RELATED
10 TO THE OPERATION OF A MOTOR VEHICLE SHALL NOT BE DEEMED A SALES
11 OR LEASE TRANSACTION, AND THE DEPARTMENT, ANY AUTHORIZED AGENT
12 OF THE DEPARTMENT AS DEFINED IN SECTION 42-1-102 (5), C.R.S., OR ANY
13 THIRD-PARTY PROVIDER OPERATING UNDER A CONTRACT WITH THE
14 DEPARTMENT TO PROCESS CREDIT OR CHARGE CARD PAYMENTS MAY
15 IMPOSE, IN ACCORDANCE WITH SECTION 42-1-220 (3), C.R.S., A
16 SURCHARGE UPON PERSONS WHO ELECT TO USE A CREDIT OR CHARGE CARD
17 TO PAY SUCH FEES, TAXES, OR FINES.
18 SECTION 3. 5-3-110, Colorado Revised Statutes, is amended to
19 read:
20 5-3-110. Surcharges on credit transactions - prohibition on.
21 (1) No seller or lessor in any sales or lease transaction or any company
22 issuing credit or charge cards may impose a surcharge on a holder who
23 elects to use a credit or charge card in lieu of payment by cash, check, or
24 similar means. A surcharge is any additional amount imposed at the time
25 of the sales or lease transaction by the merchant, seller, or lessor that
26 increases the charge to the buyer or lessee for the privilege of using a
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1 credit or charge card. For purposes of this section, charge card includes
2 those cards pursuant to which unpaid balances are payable on demand.
3 (2) FOR PURPOSES OF THIS SECTION, THE PAYMENT OF FEES, TAXES,
4 OR FINES PAYABLE TO THE DEPARTMENT OF REVENUE PURSUANT AND
5 RELATED TO THE OPERATION OF A MOTOR VEHICLE SHALL NOT BE DEEMED
6 A SALES OR LEASE TRANSACTION, AND THE DEPARTMENT, ANY
7 AUTHORIZED AGENT OF THE DEPARTMENT AS DEFINED IN SECTION 42-1-102
8 (5), C.R.S., OR ANY THIRD-PARTY PROVIDER OPERATING UNDER A
9 CONTRACT WITH THE DEPARTMENT TO PROCESS CREDIT OR CHARGE CARD
10 PAYMENTS MAY IMPOSE, IN ACCORDANCE WITH SECTION 42-1-220 (3),
11 C.R.S., A SURCHARGE UPON PERSONS WHO ELECT TO USE A CREDIT OR
12 CHARGE CARD TO PAY SUCH FEES, TAXES, OR FINES.
13 SECTION 4. Effective date. This act shall take effect at 12:01
14 a.m. on the day following the expiration of the ninety-day period after
15 final adjournment of the general assembly that is allowed for submitting
16 a referendum petition pursuant to article V, section 1 (3) of the state
17 constitution; except that, if a referendum petition is filed against this act
18 or an item, section, or part of this act within such period, then the act,
19 item, section, or part, if approved by the people, shall take effect on the
20 date of the official declaration of the vote thereon by proclamation of the
21 governor.