S.B. 181 Enrolled

1

FEES TO COVER COST OF ELECTRONIC
2 PAYMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne L. Niederhauser
6 House Sponsor: John Dougall
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Motor Vehicles Code, the Revenue and Taxation Code, and the
11 State Boating Act by amending certain fee provisions.
12 Highlighted Provisions:
13 This bill:
14 . provides definitions;
15 . authorizes the Motor Vehicle Division to impose a fee on certain motor vehicle,
16 off-highway vehicle, and boat registrations and renewals of registration to cover the
17 costs of electronic payments;
18 . authorizes the Motor Vehicle Enforcement Division to impose a fee on certain
19 motor vehicle business transactions to cover the costs of electronic payments;
20 . provides that the fees authorized:
21 . shall be imposed regardless of the method of payment;
22 . need not be separately identified; and
23 . shall be used as nonlapsing dedicated credits to cover the costs of electronic
24 payments;
25 . authorizes the State Tax Commission to charge convenience fees to cover the costs
26 of electronic payments of taxes and fees administered by the commission and
27 provides that the fees shall be used as dedicated credits by the commission; and
28 . makes technical changes.
29 Monies Appropriated in this Bill:

30 None
31 Other Special Clauses:
32 This bill takes effect on July 1, 2007.
33 Utah Code Sections Affected:
34 AMENDS:
35 41-1a-1221, as enacted by Chapter 212, Laws of Utah 2003
36 41-3-602, as renumbered and amended by Chapter 234, Laws of Utah 1992
37 41-3-604, as enacted by Chapter 147, Laws of Utah 2004
38 41-22-36, as enacted by Chapter 212, Laws of Utah 2003
39 73-18-25, as enacted by Chapter 212, Laws of Utah 2003
40 ENACTS:
41 59-1-305, Utah Code Annotated 1953
42
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 41-1a-1221 is amended to read:
45 41-1a-1221. Fees to cover the cost of electronic payments.
46 (1) As used in this section:
47 (a) "Electronic payment" means use of any form of payment processed through
48 electronic means, including credit cards, debit cards, and automatic clearinghouse transactions.
49 (b) "Electronic payment fee" means the fee assessed to defray:
50 (i) the charge, discount fee, or processing fee charged by credit card companies or
51 processing agents to process an electronic payment; or
52 (ii) costs associated with the purchase of equipment necessary for processing electronic
53 payments.
54 (2) (a) [In accordance with Section 63-38a-105 , the Division of Motor Vehicles] The
55 Motor Vehicle Division may collect an electronic payment fee on all registrations and renewals
56 of registration under Subsections 41-1a-1206 (1)(a), [ 41-1a-1206 ] (1)(b), and [ 41-1a-1206 ] (2).
57 (b) The fee described in Subsection (2)(a):

58 (i) shall be imposed regardless of the method of payment for a particular transaction;
59 and
60 (ii) need not be separately identified from the fees imposed for registration and
61 renewals of registration under Subsections 41-1a-1206 (1)(a), (1)(b), and (2).
62 [(2)] (3) The division shall establish the fee according to the procedures and
63 requirements of Section 63-38-3.2 .
64 (4) A fee imposed under this section:
65 (a) shall be used by the division as a dedicated credit to cover the costs of electronic
66 payments;
67 (b) is nonlapsing; and
68 (c) is not subject to Subsection 63-38a-104 (2).
69 Section 2. Section 41-3-602 is amended to read:
70 41-3-602. Disposition of fees and penalties.
71 [All] Except as provided in Sections 41-3-603 and 41-3-604 , all fees and penalties
72 collected under this chapter shall be paid to the state treasurer who shall deposit them in the
73 General Fund.
74 Section 3. Section 41-3-604 is amended to read:
75 41-3-604. Fee to cover the cost of electronic payments.
76 (1) As used in this section:
77 (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
78 (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
79 (2) (a) [In accordance with Section 63-38a-105 , the] The division may collect a fee to
80 cover the cost of electronic payments on the following transactions:
81 (i) each purchase or renewal of a license under Section 41-3-202 ;
82 [(a)] (ii) each purchase of a book of temporary permits under Section 41-3-302 ;
83 [(b)] (iii) each penalty issued for a delinquent temporary permit under Section
84 41-3-302 ; [and]
85 (iv) each purchase of an in-transit permit under Section 41-3-305 ;

86 (v) each purchase of a loaded demonstration permit under Section 41-3-502 ;
87 (vi) each purchase of a license plate under Section 41-3-503 ; and
88 [(c)] (vii) each purchase of a salvage vehicle buyer license under Section 41-3-202 .
89 (b) The fee described in Subsection (2)(a):
90 (i) shall be imposed regardless of the method of payment for a particular transaction;
91 and
92 (ii) need not be separately identified from the fees and penalty described in Subsections
93 (2)(a)(i) through (vii).
94 [(2)] (3) The division shall establish the fee under Subsection (2)(a) according to the
95 procedures and requirements of Section 63-38-3.2 .
96 (4) A fee imposed under this section:
97 (a) shall be used by the division as a dedicated credit to cover the costs of electronic
98 payments;
99 (b) is nonlapsing; and
100 (c) is not subject to Subsection 63-38a-104 (2).
101 Section 4. Section 41-22-36 is amended to read:
102 41-22-36. Fees to cover the costs of electronic payments.
103 (1) As used in this section:
104 (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
105 (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
106 (2) (a) [In accordance with Section 63-38a-105 , the Division of Motor Vehicles] The
107 Motor Vehicle Division may collect an electronic payment fee on all registrations and renewals
108 of registration under Section 41-22-8 .
109 (b) The fee described in Subsection (2)(a) shall be imposed regardless of the method of
110 payment for a particular transaction.
111 [(2)] (3) The division shall establish the fee according to the procedures and
112 requirements of Section 63-38-3.2 .
113 (4) A fee imposed under this section:

114 (a) shall be used by the Motor Vehicle Division as a dedicated credit to cover the costs
115 of electronic payments;
116 (b) is nonlapsing;
117 (c) is not subject to Subsection 63-38a-104 (2); and
118 (d) need not be separately identified from the fees imposed on registrations and
119 renewals of registration under Section 41-22-8 .
120 Section 5. Section 59-1-305 is enacted to read:
121 59-1-305. Convenience fee to cover the costs of electronic payments.
122 (1) As used in this section:
123 (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
124 (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
125 (2) The commission may collect a convenience electronic payment fee established in
126 accordance with the procedures and requirements of Section 63-38-3.2 to cover the costs of
127 electronic payments of taxes and fees administered by the commission.
128 (3) Notwithstanding any other provisions of this title, the commission shall use a fee
129 imposed under this section as a dedicated credit to cover the costs of electronic payments.
130 Section 6. Section 73-18-25 is amended to read:
131 73-18-25. Fees to cover the costs of electronic payments.
132 (1) As used in this section:
133 (a) "Electronic payment" has the same meaning as defined in Section 41-1a-1221 .
134 (b) "Electronic payment fee" has the same meaning as defined in Section 41-1a-1221 .
135 (2) (a) [In accordance with Section 63-38a-105 , the Division of Motor Vehicles] The
136 Motor Vehicle Division may collect an electronic payment fee on all registrations and renewals
137 of registration under Section 73-18-7 .
138 (b) The fee described under Subsection (2)(a) shall be imposed regardless of the
139 method of payment for a particular transaction.
140 [(2)] (3) The [division] Motor Vehicle Division shall establish the fee according to the
141 procedures and requirements of Section 63-38-3.2 .

142 (4) A fee imposed under this section:
143 (a) shall be used by the Motor Vehicle Division as a dedicated credit to cover the costs
144 of electronic payments;
145 (b) is nonlapsing;
146 (c) is not subject to Subsection 63-38a-104 (2); and
147 (d) need not be separately identified from the fees imposed on registrations and
148 renewals of registration under Section 73-18-7 .
149 Section 7. Effective date.
150 This bill takes effect on July 1, 2007.