Illinois General Assembly - Full Text of SB2083
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB2083  102nd General Assembly

SB2083 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2083

 

Introduced 2/26/2021, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Interchange Fee Act. Provides that the amount of any covered tax that is calculated as a percentage of the gross retail income received by a merchant or seller in an electronic payment transaction and listed separately on the payment invoice or other demand for payment must be excluded from the amount upon which any interchange fee is charged for the electronic payment transaction with respect to which the covered tax is imposed. Contains provisions concerning penalties.


LRB102 14105 HLH 19457 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2083LRB102 14105 HLH 19457 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Interchange Fee Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Covered tax" means any separately stated State or local
8tax on goods or services.
9    "Credit card" means any card, plate, coupon book, or other
10credit device that is issued for the purpose of allowing a
11person to obtain money, property, labor, or services on
12credit.
13    "Debit card" means any card or other payment code or
14device issued or approved for use through a payment card
15network to debit an asset account, regardless of the purpose
16for which the account is established or whether authorization
17for the debit is based on a signature, a personal
18identification number, or other means. The term "debit card"
19includes a general-use prepaid card but does not include a
20paper check.
21    "Electronic payment transaction" means a transaction in
22which a person uses a debit card, a credit card, or another
23payment code or device issued or approved for use through a

 

 

SB2083- 2 -LRB102 14105 HLH 19457 b

1payment card network to debit a deposit account or use a line
2of credit, regardless of whether authorization for the debit
3is based on a signature, a personal identification number, or
4other means.
5    "Interchange fee" means a fee established, charged, or
6received by a payment card network for the purpose of
7compensating an issuer for the issuer's involvement in an
8electronic payment transaction.
9    "Issuer" means a person, or agent thereof, that issues a
10debit card or a credit card.
11    "Payment card network" means an entity that, directly or
12through licensed members, processors, or agents, provides the
13proprietary services, infrastructure, and software that:
14        (1) routes information and data to conduct debit card
15    or credit card transaction authorization, clearance, and
16    settlement; and
17        (2) a merchant or seller uses in order to accept as a
18    form of payment a brand of:
19            (A) debit card;
20            (B) credit card; or
21            (C) another device that may be used to carry out
22        debit or credit transactions.
23    "Settlement", with respect to an electronic payment
24transaction, means the transfer of funds from a customer's
25account to a seller or merchant upon electronic submission of
26finalized sales transactions to a payment card network.
 

 

 

SB2083- 3 -LRB102 14105 HLH 19457 b

1    Section 10. Payment card interchange fees.
2    (a) The amount of any covered tax that is calculated as a
3percentage of the gross retail income received by a merchant
4or seller in an electronic payment transaction and listed
5separately on the payment invoice or other demand for payment
6must be excluded from the amount upon which any interchange
7fee is charged for the electronic payment transaction with
8respect to which the covered tax is imposed.
9    (b) A payment card network shall do one of the following:
10        (1) at the time of settlement of an electronic payment
11    transaction, deduct from the calculation of any
12    interchange fees to be imposed the amount of any covered
13    taxes that are specific to that form or type of electronic
14    payment transaction; or
15        (2) rebate an amount of the interchange fee in an
16    amount proportionate to the amount of the interchange fee
17    attributable to all covered taxes imposed in the
18    electronic payment transaction.
19    (c) Except as provided in subsection (d), a deduction or
20rebate made under subsection (b) must occur at the time of
21settlement when the merchant or seller, as part of the
22transaction finalization, is able to capture and transmit tax
23and fee amounts relevant to the sale at the time of sale.
24    (d) If a merchant or seller is not able to capture and
25transmit tax or fee amounts relevant to the sale at the time of

 

 

SB2083- 4 -LRB102 14105 HLH 19457 b

1sale, the payment card network shall:
2        (1) upon submission of sales data by the merchant or
3    seller, accept proof of covered tax amounts collected on
4    sales subject to an interchange fee; and
5        (2) promptly credit the merchant's or seller's
6    settlement account.
7    (e) It shall be unlawful to alter or manipulate the
8computation and imposition of interchange fees by increasing
9the rate or amount of the fee applicable to or imposed upon
10that portion of an electronic payment transaction not
11attributable to a State or local tax or fee to circumvent the
12effect of this Act.
 
13    Section 15. Penalties. A payment card network that
14violates this Section: (1) is liable for a civil penalty in an
15amount not to exceed $1,000 per violation, payable to a person
16determined by a court to have been aggrieved by the violation;
17and (2) shall refund to each merchant or seller affected by the
18violation the amount of excess interchange fees collected.