SPRINGFIELD – To help local governments control their own processes, State Senator Meg Loughran Cappel advanced a measure out of the Senate that would ban software companies from telling local governments to use certain payment processing systems.

“Local governments should be able to use whatever payment processing systems they want,” said Loughran Cappel (D-Shorewood). “They should be able to make the choice for themselves, regardless of what their contractors say.”

The measure would restrict software companies’ say in the payment processing systems that local governments use, including the State Treasurer’s ePAY program. Currently, software companies that contract with local governments can decide which systems the governments use for their billing, accounting and payroll services.

The Illinois ePAY program was created by the State Treasurer’s Office in 2002 to make it easier for local governments to receive credit card, debit card and electronic check payments. However, software providers that set up local governments’ technology are often unwilling to use any payment system except their own, which includes the ePAY program.

“This measure would lower local governments’ costs for their payment systems, which would in turn reduce residents’ fees,” Loughran Cappel said. “That would make residents’ lives easier because they would have more money to spend.”

Senate Bill 3321 passed the Senate Thursday.