Section 5-23-1
Section 5-23-1
Definitions.
The following terms shall have the meanings ascribed to them unless the context clearly indicates otherwise:
(1) TREASURER. The State Treasurer of Alabama.
(2) FINANCIAL INSTITUTION. Any bank, savings and loans association or credit union operating in Alabama which is chartered under federal or state statutes.
(3) FINANCIAL INSTITUTION CREDIT CARD. A credit card that entitles the holder to make open-account purchases up to an approved amount and which is issued through a financial institution.
(4) SPONSORING ENTITY. An entity, including specifically the State of Alabama, which solicits the use of a particular financial institution credit card bearing the entity's name in exchange for a fee from the credit card issuer.
(5) STATE FEES. All moneys generated from this program that are remitted to the State of Alabama.
(Acts 1990, No. 90-524, p. 764, §1.)Section 5-23-2
Section 5-23-2
State participation in financial institution credit card program; contact with financial institutions.
The State Treasurer is hereby authorized to participate in a financial institution credit card program for the benefit of the state. Within 180 days of April 19, 1990, the Treasurer shall contact as many financial institutions as, in the Treasurer's discretion is necessary, to determine if:
(1) The financial institution or its holding company or affiliate currently administers a credit card program;
(2) The credit card program provides a fee or commission on retail sales to the sponsoring entity for the issuance and use of the credit card; and
(3) The credit card program would accept the state as a sponsoring entity.
(Acts 1990, No. 90-524, p. 764, §2.)Section 5-23-3
Section 5-23-3
Negotiation of state's fee; contracts with financial institutions; use of state seal and insignia.
(a) If the Treasurer determines that the state may be a sponsoring entity for a financial institution credit card, he shall negotiate and contract for the most favorable rate of return for the state's fee by a credit card issuer. The state may not offer a more favorable rate to any one credit card issuer over another. The rate must be expressed as a percentage of the gross sales from the use of the credit card.
(b) In participating in a credit card program, the State Treasurer may contract with any number of financial institutions in order to establish the state as a sponsoring entity.
(c) There shall be only one official state sponsored credit card at any given time, and it shall be the official state sponsored credit card authorized by this chapter. It is provided further that the card issuer is authorized to use the official state seal and insignia on said official card.
(d) The state shall not contract to assume any liability for lost or stolen credit cards, nor any other legal debt owed to the financial institutions.
(e) The Treasurer is specifically authorized to extend any contract with a financial institution or institutions previously selected for the credit card program.
(Acts 1990, No. 90-524, p. 764, §3.)Section 5-23-4
Section 5-23-4
Proceeds.
The net proceeds of the state fees shall be transmitted to the state Comptroller and distributed as follows:
(1) Seventy-five percent to the Foundation for Local Schools as provided in Chapter 26C of Title 16, to be allocated to the credit of local school systems.
(2) Twenty-five percent to the Penny Trust Fund as established by Amendment 512 of the Constitution of Alabama of 1901, and by Chapter 15A of Title 41.
(Acts 1990, No. 90-524, p. 764, §5; Act 98-319, p. 535, §11.)Section 5-23-5
Section 5-23-5
Rules and regulations.
The State Treasurer is authorized to adopt such rules and regulations as may be necessary to implement the Alabama state-sponsored credit card program. The rules may include, without limitation, provisions governing the procedures for contacting financial institutions to determine if they would accept the state as a sponsoring entity for a credit card program and for negotiating, and collecting, the rate for the state's fee. The financial institution which administers the program may name or rename the card.
(Acts 1990, No. 90-524, p. 764, §6; Act 98–319, p. 535, §12.)Section 5-23-6
Section 5-23-6
Disclosure of information.
It shall be legal and permissible for the financial institution to request and receive from the state Comptroller a listing of all members of the Teachers' Retirement System, the Employees' Retirement System, and the Judicial Retirement System, including the names and addresses of the members on discs, tapes, or other appropriate electronic retrieval systems at actual costs. It shall also be legal and permissible for the financial institution to receive the names and addresses of all persons who purchase the 'Helping Schools' distinctive car tags, if the purchasers of the tags have not signed forms disallowing the release of their names and addresses as provided by federal regulations. The financial institution may use the information only for informational or promotional purposes, or both, pertaining to the Alabama state-sponsored credit card card programs as provided by this chapter.
(Act 99-592, p. 1354, §4.)
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