The State’s Cash Management Policy (G.S. 147-86.10&.11) authorizes the State Controller to develop and implement a uniform statewide cash management plan along with necessary policies and procedures. In addition, G.S. 147-86.11(h) states, "The statewide cash management plan shall consider new technologies and procedures whenever the technologies and procedures are economically beneficial to the State as a whole." In many applications acceptance of credit/debit card payments by state agencies is considered both economically beneficial and a necessary business practice as computer access to state government continues to grow. Everyone seems excited about doing business through electronic transactions; however, several issues need to be addressed concerning legislation, statewide infrastructure, security and contracting for banking services.

Enabling legislation in the form of Senate Bill 222, GOVERNMENT ACCEPT ELECTRONIC PAYMENT, has passed the Senate and is expected to pass the House soon. The bill requires the State Controller to establish policies allowing electronic payments with the concurrence of the State Treasurer and the Administrative Officer of the Courts (for payments to the office of superior court clerk or magistrate). It further authorizes state payment of fees, when appropriate, for processing of electronic payments from General Fund and Highway Funds and authorizes the state, when permissable, to impose a fee for use of electronic payment. Senate Bill 222 also amends GS 132-1.2 of the public records law to protect from public disclosure an account number used for electronic payment.

Page 2

Credit Card Payments

The State Controller and the State Treasurer, working in conjunction with the Electronic Commerce Work Group and the Information Resource Management Commission, have initiated a project related to implementation of a strategy for statewide contracting and infrastructure to accommodate credit card payments and other related banking services. The project will develop a Request for Information for statewide banking services to include all electronic payments: payment by charge card, credit card, debit card, or by electronic funds transfer. Additional project issues include:

• An open system configuration, consistent with commercial industry rules, standards and procedures
• Secure and reliable transactions among all parties
• A system that is interoperable for government, commercial and private accessibility

All State agencies and institutions will need to work together as we advance into the E-commerce business arena. A coordinated statewide approach will offer efficiencies and economies that a fragmented approach cannot. With your assistance the State can implement best business practices that will offer all taxpayers a convenient way to complete most of their business transactions with the State.

We will provide you with periodic updates as progress is made and solicit your input through the use of task force and advisory groups. Amber Young from the Office of the State Controller, assisted by David Reavis from the State Treasurer’s Office, will be coordinating this project. You may contact us directly, or the project coordinator, to discuss any concerns that you may have. Thank you.

HB:ER:as