N.Y. STF Law § 4-A — New York Code / Act STF / Article 2 / Section 4-A
Electronic value transfer program
Status: in_force

§ 4-a. Electronic value transfer program. 1. Definitions. As used in\nthis section the following terms shall have the following meanings:\n  a. "Electronic value transfer device" means a credit card, debit card,\ncharge card, electronic fund transfer or other electronic value transfer\nmechanism approved by the electronic value transfer administrator.\n  b. "Device issuer" means an issuer of an electronic value transfer\ndevice.\n  c. "Electronic value transfer" means any transfer of funds which is\ninitiated directly or indirectly by the use of an electronic value\ntransfer device so as to order, instruct or authorize a financing\nagency, device issuer or processor to initiate a transaction in any\nmanner which results in a payment to a state agency.\n  d. "Electronic value transfer administrator" means a state agency\ndesignated by the governor to administer electronic value transfer\nprograms which shall have the authority, duties, and responsibilities\ngranted pursuant to this section.\n  e. "Financing agency" means any agency defined as such in subdivision\neighteen of section four hundred one of the personal property law to the\nextent not inconsistent with this chapter.\n  f. "Charge back" means a credit to the device user from an electronic\nvalue transfer transaction of the amount of the transaction in question\nincluding, but not limited to, duplicate or other erroneous payments.\n  g. "Device user" means a person using an electronic value transfer\ndevice pursuant to this section.\n  h. "Processor" means an entity which manages the physical system,\nauthorizes acceptance of electronic value transfer transactions and/or\narranges for fund transfers or customer billings.\n  i. "State agency" means any department, board, bureau, division,\ncommission, committee, council, office of the state, or other\ngovernmental entity with statewide jurisdiction.\n  2. Electronic value transfer administrator. The electronic value\ntransfer administrator shall have the following authority, duties, and\nresponsibilities: to establish a statewide policy and direction for\nelectronic value transfer programs; to facilitate and oversee the\nstate's electronic value transfer programs with primary responsibility\nfor their effective and efficient implementation, operation and\nadministration; to issue guidelines for the development of plans\nrequired to be submitted pursuant to this section, for the collection of\npayments by electronic value transfer devices and the associated\nagreements with device issuers, processors and financing agencies; to\nnegotiate directly or in conjunction with other state agencies\nagreements with financing agencies, device issuers, or processors; and\nto determine in conjunction with state agencies the cost benefit to the\nstate for utilizing alternative payment mechanisms. The electronic value\ntransfer administrator may exempt a state agency, where it is in the\nbest interest of the state, from any policy or guideline issued pursuant\nto this section. Authorization for the payment of any amount by means of\nan electronic value transfer device pursuant to this section shall be in\naddition to any existing authority of state agencies to accept payment\nby other means.\n  3. State agency collection of payments. Each state agency is\nauthorized, subject to the approval of the electronic value transfer\nadministrator, and the director of the budget, to collect payments of\nfines, fees, rates, charges, taxes, interest penalties, special\nassessments, revenue, financial obligations or other amounts by\nelectronic value transfer devices, consistent with the statewide\npolicies and guidelines established by the electronic value transfer\nadministrator. Such approval shall be based upon a plan submitted to the\nelectronic value administrator and the director of the budget. The plan\nshall outline the costs and benefits of establishing an electronic value\ntransfer program, indicate the type of alternative payment mechanisms\nproposed, and notwithstanding any law to the contrary, may include\nprovisions for surcharges which shall not be state money, to pay for\ntransaction costs of the financing agency, device issuers, or processor\nassociated with the electronic value transfer. The state shall notify\nthe device user of the amount or percentage of the surcharge.\n  4. Electronic value transfer agreements. Consistent with article\neleven of this chapter, one or more state agencies are authorized to\nenter directly or collectively into agreements or to utilize centralized\nservice contracts with one or more financing agencies, device issuers,\nor processors to provide for the acceptance by a state agency of\nelectronic value transfer as a means of payment for fines, fees, rates,\ncharges, taxes, interest, penalties, special assessments, revenue,\nfinancial obligations and other amounts. Any such agreement shall govern\nthe terms and conditions upon which an electronic value transfer device\nproferred as a means of payment shall be accepted or declined and the\nmanner in, and conditions upon, which the financing agency, device\nissuer or processor shall pay to such state agency the amount of\npayments collected by means of an electronic value transfer device\npursuant to such agreement. Any agreement entered into shall include a\nterm and condition that the financing agency, device issuer or processor\nshall not be authorized to charge back to the device user except as\nexpressly provided in such agreement. Any state agency which has entered\ninto an agreement with a financing agency, device issuer or processor,\nas authorized by the provisions of this section, may accept electronic\nvalue transfer as a means of payment as specified by the state agency in\nthe agreement. The state agency may pay such fees, subject to an\nappropriation, as may be specified in such agreement with such financing\nagency, device issuer or processor in consideration of the services\nrendered by such financing agency, device issuer or processor,\nthereunder. Provided, however, in no event, shall there be a reduction\nin any payment due to the state of the amounts authorized to be\ncollected pursuant due to subdivision three of this section.\n  5. Payment. The underlying debt, lien, obligation, bill, account or\nother amount owed to the state agency for which payment by electronic\nvalue transfer device is accepted by the state agency shall not be\nexpunged, canceled, released, discharged or satisfied, and any receipt\nor other evidence of payment shall be deemed conditional, until the\nstate agency has received final and unconditional payment of the full\namount due from the financing agency, device issuer or processor for\nsuch electronic value transfer device transaction. Any such expunction,\ncancellation, release, discharge or satisfaction shall not be deemed to\nexpunge, cancel, release, discharge or satisfy any amount which is not\npaid to the financing agency, device issuer or processor for such\nelectronic value transfer device transaction.\n  6. Access to information. Nothing contained in this section shall be\ndeemed to grant access to information where such information is\notherwise protected by law from access.\n