SPRINGFIELD – State Senator Meg Loughran Cappel is heading a measure that would prevent software companies from stopping local governments’ use of certain payment processing systems.

“This measure gives power back to local governments,” said Loughran Cappel (D-Shorewood). “Software companies should not be dictating how governments work. That should be up to the governments to decide what is best for themselves.”

The measure would restrict software companies’ say in which payment processing systems local governments can use, including the State Treasurer’s ePAY program. Currently, software companies that contract with local governments can dictate which systems those governments use for billing, accounting and payroll services.

The State Treasurer’s Office established the Illinois ePAY program in 2002 to make accepting credit card, debit card and electronic check payments more affordable for local governments. However, software providers that run local governments’ technology are often unwilling to use the ePAY program or any payment system other than their own.

“This measure also saves the taxpayers money,” Loughran Cappel said. “Using the Illinois ePAY program is typically cheaper for local governments than using third-party systems, but they have been forced to work with third-party systems and pass the higher cost on to consumers.”

Senate Bill 3321 passed the Senate Local Government Committee Wednesday, and it will now head to the full Senate for further consideration.