SPRINGFIELD – Local governments can now control their own processes under a new law led by State Senator Meg Loughran Cappel that bans software companies from telling local governments to use certain payment processing systems.
“Local governments should be able to make choices for themselves,” said Loughran Cappel (D-Shorewood). “They should not be beholden to outside interests telling them which payment processing systems they must use.”
The law restricts software companies’ input for the payment processing systems used by local governments, including the State Treasurer’s ePAY program. Previously, software companies contracting with local governments could decide which systems to use for the governments’ billing, accounting and payroll services.
The State Treasurer’s Office developed the Illinois ePAY program in 2002 to lower local governments’ receiving costs for credit card, debit card and electronic check payments. However, software providers installing local governments’ technology often would not do so for a payment system that is from another company, including the ePAY program.
“This law makes it cheaper for local governments to run their payment systems,” Loughran Cappel said. “In turn, this lowers the costs for residents, giving them more money to spend and improving the local economy.”
Senate Bill 3321 was signed into law Friday and takes immediate effect.
