Introduced Version
SENATE BILL No. 542
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-27.
Synopsis: Electronic payments to governmental bodies. Amends the
definition of "electronic payment" for purposes of the statute governing
electronic payments to a governmental body (defined as the state or a
state agency) to include a payment made by means of any of the
following: (1) Interactive voice response. (2) A digital wallet. (3) A
digital currency. Provides that after June 30, 2025, a governmental
body may not enter into or renew a contract: (1) that is made with a
provider or vendor of payment processing services; and (2) the terms
of which provide that any: (A) vendor transaction charge; (B) discount
fee; or (C) other service charge or fee; assessed in connection with the
contract is payable by the person who makes an electronic payment.
Effective: July 1, 2025.
Spencer
January 16, 2025, read first time and referred to Committee on Appropriations.
2025 IN 542—LS 7018/DI 101 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 542
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-27-2-3 IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2025]: Sec. 3. "Electronic payment" means a
3 payment by means of any of the following:
4 (1) A credit card.
5 (2) A debit card.
6 (3) A charge card.
7 (4) A stored value card.
8 (5) A bank card.
9 (6) An electronic check. or
10 (7) An electronic funds transfer, including: but not limited to:
11 (A) Fed wire; and
12 (B) Automated Clearing House.
13 (8) Interactive voice response.
14 (9) A digital wallet.
15 (10) A digital currency.
16 SECTION 2. IC 5-27-3-3 IS AMENDED TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Except as provided in
2025 IN 542—LS 7018/DI 101 2
1 subsection (c), a governmental body may:
2 (1) if the governmental body obtains the consent of each
3 governmental body that is directly affected by the transaction,
4 recognize the net amount remitted by the provider company as
5 payment in full of an amount due the governmental entity for a
6 service, a tax, a license, a permit, a fee, information, or any other
7 amount due the governmental body that was paid by an electronic
8 payment; or
9 (2) collect a sum for the vendor transaction charge, discount fee,
10 or any other charge from the person who makes an electronic
11 payment.
12 A fee under subdivision (2) may be collected as an enhanced service
13 fee by a governmental body. The fee is a permitted additional charge
14 under IC 24-4.5-3-202.
15 (b) A governmental body may pay a service charge or fee in
16 connection with its agreement with the provider company.
17 (c) After June 30, 2025, a governmental body may not enter into
18 or renew a contract:
19 (1) that is made with a provider company or any other vendor
20 of payment processing services; and
21 (2) the terms of which provide that any:
22 (A) vendor transaction charge;
23 (B) discount fee; or
24 (C) other service charge or fee;
25 assessed in connection with the contract is payable by the
26 person who makes an electronic payment, as described in
27 subsection (a)(2).
28 (d) Subsection (c) does not:
29 (1) affect the validity of a contract that:
30 (A) is entered into by a governmental body and:
31 (i) a provider company; or
32 (ii) any other vendor of payment processing services;
33 before July 1, 2025; and
34 (B) provides that any:
35 (i) vendor transaction charge;
36 (ii) discount fee; or
37 (iii) other service charge or fee;
38 assessed in connection with the contract is payable by the
39 person who makes an electronic payment, as described in
40 subsection (a)(2); or
41 (2) prohibit the collection of any:
42 (A) vendor transaction charge;
2025 IN 542—LS 7018/DI 101 3
1 (B) discount fee; or
2 (C) other service charge or fee;
3 assessed in connection with a contract described in
4 subdivision (1), from a person making an electronic payment
5 for an amount owed to the governmental body for any service,
6 tax, license, permit, fee, information, or other amount owed to
7 the governmental body.
2025 IN 542—LS 7018/DI 101