HomeMy WebLinkAboutOrd 874-2020 Authorizing Acceptance of Credit Cards for Payment of Fees, Fines, Court Costs & Other ChargesORDINANCE NO. '8'1i · f)D90
AN ORDINANCE OF THE CITY OF ANNA, TEXAS AUTHORIZING THE
ACCEPTANCE OF CREDIT CARDS FOR PAYMENT OF FEES, FINES, COURT
COSTS AND OTHER CHARGES; PROVIDING FOR A PROCESSING FEE FOR
CREDIT CARD PAYMENT OF FEES, FINES, COURT COSTS AND OTHER
CHARGES; PROVIDING FOR A SERVICE CHARGE IF PAYMENT BY CREDIT CARD
IS NOT HONORED; PROVIDING FOR SEVERABILITY; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Anna, Texas is a home-rnle municipality duly established under the
laws of the State of Texas; and
WHEREAS, generally, Chapter 132 of the Texas Local Government Code authorizes the
governing body of a municipality to authorize a municipal official who collects, fees, fines,
court costs and other charges to accept payment by credit card and further authorizes the
collection of a processing fee for use of a credit card and the collection of a service charge if
a credit card is not honored by the credit card company; and
WHEREAS, more specifically as it relates to authorizing the processing fee, Chapter 132,
Section 132.002(b) of the Texas Local Government Code authorizes the governing body of a
municipality to authorize a municipal official who collects fees, fines, court costs or other
charges to accept payment by credit card and to collect a fee for processing the payment by
credit card; and
WHEREAS, more specifically as it relates to the processing fee amount, Chapter 132,
Section 132.003(b) of the Texas Local Government Code authorizes a municipality to set a
processing fee in an amount that is reasonably related to the expense incurred by the
municipality in processing the payment by credit card. However, the governing body may not
set the processing fee in an amount that exceeds five percent (5%) of the amount of the fee,
fine, court cost, or other charge beingpaid; and
WHEREAS, more specifically as it relates to a service charge fee for credit card not honored,
Chapter 132, Section 132.004 of the Texas Local Government Code states that if, for any
reason, a credit card payment is not honored by the credit card company on which the funds are
drawn, the municipality may collect a service charge from the person who owes the fee, fine,
court cost, or other charge. The service charge is in addition to the original fee, fine, comi cost
or other charge and is for the collection of the original amount. The service charge fee is the
same amount as a fee charged for the collection of a check drawn on an account with
insufficient funds; and
WHEREAS, the City Council of the City of Anna, Texas (the "City Council") has determined that
acceptance of credit cards is beneficial to the City and its citizens' public convenience and
should be authorized; and
CITY OF ANNA, TEXAS Page 1 of 3
WHEREAS, the City Council recognizes that the City incurs additional expenses to accept
credit card payments and shall set the processing fee in an amount that is reasonably related to
the expenses incuned; and
WHEREAS, the City Council wants to authmize a credit card processing fee for all municipal
fees, fines, court costs, or other charges;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ANNA, TEXAS, THAT:
Section 1. The foregoing recitals are incorporated into this Ordinance by reference as
findings of fact as if expressly set forth herein.
Section 2. The Anna City Code of Ordinances is hereby amended by adding a new Section
A4.019 to the Appendix A FEE SCHEDULE to read as follows:
Sec. A4.019 Use of Credit Cards for Payment Due to the City.
@l Credit card use authorized. Each official
employed by the City of Anna who, as part of that employment,
collects fees, fines, court costs, or other charges from members
of the public that are due to the City is authorized to accept credit
cards as payment for such fees, fines, court costs, and other
charges.
.{h)_ Amountofp:ocessingfee. For each municipal
fee, fine, court cost, or other charge that is paid by credit card, a
processing fee in an amount being reasonably related to the
expense incurred in processing the credit card payment, not to exceed
five percent (5%) of the amount of the fee, fine, court cost, or other
charge shall be added, as authorized by Section 132.003(b ),
Texas Local Government Code.
1.£} Service charge. If for any reason a payment
by credit card is not honored by the company on which the funds
are drawn, the officer shall collect from the member of the public
who attempted to pay by credit card an additional service charge
in the same amount charged under section A6.011 for a check
that is returned to the city or not honored by the financial
institution on which it is drawn for any reason.
@ Encumbrance of credit cards. The City may
contract with a company that issues credit cards to collect and
seize credit cards issued by the company that are outdated or
CITY OF ANNA, TEXAS ORD. NO. 811 '-/ -~ dOoK) Page 2 of 3
otherwise unauthorized. The city may charge the company a fee
for the return of the credit cards.
@} Disposition of fees and charges. The city
official collecting a fee or charge under this section shall deposit
the fee or charge in the general fund of the city.
Section 3. Severability. It is hereby declared to be the intention of the City Council that the
phrases, clauses, sentences, paragraphs, and sections of this ordinance are severable, and it any
phrase, clause, sentence, paragraph or section of this ordinance should be declared
unconstitutional by valid judgment or decree of any court of competent jurisdiction, such
unconstitutionality shall not affect any of the remaining phrases, clauses, sentences,
paragraphs or sections of this ordinances, since the same would have been enacted by the City
Council without incorporation in this ordinance of any such unconstitutional phrases, clause,
sentence, paragraph or section.
Section 4. Effective Date. This ordinance shall become effective and shall be in full force
and effect on and after its passage and publication as required by state law.
APPROVED AND ADOPTED by the City Council of the City of Anna, Texas on this the 8th
day of September, 2020.
ATTESTED:
CITY OF ANNA, TEXAS ORD. NO. ~19-ci(Jo() Page 3 of 3