HomeMy Public PortalAbout053-2020 - General Oridiance - Establishing New Uniform Service Charge Procedure_ : *
COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA
ORDINANCE NO.53-2020
A GENERAL ORDINANCE ESTABLISHING NEW BANK CARD OR CREDIT CARD
SERVICE CHARGE PROCEDURES PURSUANT TO INDIANA CODE 36-1-8 AND
REPEALING AND RESCINDING PRIOR ORDINANCE NO.37-2012
WHEREAS, On July 2, 2012, the Richmond Common Council (hereinafter "Common Council") as
fiscal body of the City of Richmond, Indiana (hereinafter "City"), adopted Ordinance
No. 37-2012, which prior Ordinance, among other things, contained, the City's option
to authorize the City's executive administration to pay the service charges on behalf of
credit card users or bank card users; and
WHEREAS, The prior Ordinance referenced Indiana Code (IC) 36-1-8-11 (hereinafter "statute"),
which State statute continues to generally allows the fiscal body of a political
subdivision to authorize the municipal unit to accept payments by cash, check, bank
draft, money order, bank card or credit card, electronic funds transfer, or any other
financial instrument authorized by the fiscal body; and
WHEREAS, Subsection I I (e) of the State statue authorizes a fiscal body to authorize the acceptance
of payments with bank cards and credit cards under the procedures'set forth in Section
11 of the State statute, provided that procedures authorized for a particular type of
payment must be uniformly applied to all payments of the same type; and
WHEREAS, Subsection I I (d) of the State statute specifically authorizes the City to collect a sum
equal to the amount of the transaction charge from the person who uses the financial
instrument, which, in other words, authorizes the option for the City to "pass on" or
apply any transaction service. charges to the transaction users during the transaction
instead of paying those costs out of City funds; and
WHEREAS, Due to the increased and ongoing use by the City and its Departments of online bank
card or credit card transactions; point -of -sale transactions, and mobile payment
transactions, the City executive administration wishes to instead opt to accept payments
of bank card users or credit card users where the uniform service charges are instead
paid by users who utilize financial instruments as set forth in Subsection I I(d) of the
State statute, and which method and option is in keeping with standard financial
transaction practices in the private sector; and
WHEREAS, It is in the best interest of the City of Richmond, Indiana, and its citizens that the City
repeal and rescind prior Ordinance No. 37-2012 in its entirety and it is also in the best
interests of the City that the Common Council continue to authorize the acceptance of
payments under Section 11 of the, State statute and authorize the City executive
administration to apply and "pass on" or otherwise collect the services charges for the
use of the bank card or credit card financial instruments to the users of said financial
instruments as set forth in said Section 11 of the State statute.
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NOW, THEREFORE, BE IT. ORDAINED by the Common Council of the City of Richmond,
Indiana, that Ordinance No. 37-2012 is repealed and rescinded in its entirety.
NOW, THEREFORE, BE IT FURTHER ORDAINED by the Common Council of the City of
Richmond, Indiana, that the Common Council authorizes the City executive administration to continue
accept bank card or credit card payments by the methods set forth in IC 36-1-8-11.
NOW, THEREFORE, BE IT FURTHER ORDAINED by the Common Council of the City of
Richmond, Indiana, that the Common Council authorizes the City executive administration to collect
and pass on any applicable bank card or credit card service charges in accordance with IC 36-1-8-11(d)
and procedures. authorized for a particular type of payment must continue to be uniformly applied to
all payments of the same type in accordance with IC 36-1-8-11(e).
NOW, THEREFORE, BE IT FURTHER ORDAINED by the Common Council of the City of
Richmond, Indiana, that the enforcement of this Ordinance will not apply to contracts already in effect
on the passage date of this Ordinance.
Passed and adopted this AIL day of 2020, by the Common Council of the
City of Richmond, Indiana. or
47
6� , President
(Ron Oler, Ph.D.)
ATTES�
(Karen Chasteen, IAMC, MMC)
PRESENTED to the Mayor of the City of Richmond, Indiana, this�`L day of 2020,
at 9:00 a.m.
i Clerk
(Karen Chasteen, IAMC, MMC)
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana; this 7_67 day of
Se pTL' IISGam, 2020, at . / o ' L4 Aril
I e --
Mayor
avid M. Snow
ATTEST:
( aren Chasteen, IAMC, MMC)
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