State Senator Meg Loughran Cappel is heading a measure that would prevent software companies from stopping local governments’ use of certain payment processing systems.
The measure would restrict software companies’ say in which payment processing systems local governments can use, including the State Treasurer’s ePAY program. Currently, software companies that contract with local governments can dictate which systems those governments use for billing, accounting and payroll services.
The State Treasurer’s Office established the Illinois ePAY program in 2002 to make accepting credit card, debit card and electronic check payments more affordable for local governments. However, software providers that run local governments’ technology are often unwilling to use the ePAY program or any payment system other than their own.
Senate Bill 3321 passed the Senate Local Government Committee Wednesday, and it will now head to the full Senate for further consideration.
