State Credit Card Cost Recovery. In 2012, the state worked with credit card companies to begin the cost recovery of credit service fees. This program is known as the Government Service Fee Program. A variety of state agencies participate in this program, including the Department of Licensing (DOL).
As of June 30, 2019, this meant that DOL was charging service fees for credit card transactions in licensing service offices, vehicle/vessel licensing offices, prorate and fuel tax offices, and business and professions offices. For the most part, DOL was not charging service fees for on-line transactions.
2019-21 Transportation Budget. Funding was provided in 2019-21 transportation budget for the Office of Financial Management (OFM) to evaluate, coordinate, and assist in efforts by state agencies in developing cost recovery mechanisms for credit card and other financial transaction fees currently paid from state funds. OFM was also directed to provide a report to the Legislature on options to expand similar cost recovery mechanisms to other state agencies and programs, including Washington State Ferries. This report was submitted on October 30, 2019.
As part of this effort, OFM, with the assistance of DOL, was directed to develop implementation plans and take all necessary steps to ensure that credit card service fee cost recovery mechanisms were in place for the vehicles and drivers programs by January 1, 2020. This effectively meant that credit card service fees were being collected for in office and online vehicle and driver transactions. The 2019-21 transportation budget created the Agency Financial Transaction Account to receive the credit cost service fee recovery amounts and to offset state and some local government credit card service fees.
Unless reauthorized in subsequent law, the DOL credit card cost recovery provisions expire on June 30, 2021.
The changes requiring DOL to implement credit card service fee cost recovery mechanisms for vehicle and driver licensing transactions established in the 2019-21 transportation budget are made permanent.
No public hearing was held.