TO: Honorable Members of the Board of Supervisors

FROM: Office of the Legislative Analyst

SUBJECT: Employee Suggestion No. 33: Adult Probation Department should accept credit cards payments for probation fines

The employee suggests that the Adult Probation Department accept credit card payments for probation fines.

The Department advises that there is a large population of indigent probationers in San Francisco who do not have credit cards. These probationers would continue to pay for their fines with cash, check, cashier’s check or money order. If so, the employee’s suggestion would generate only a limited amount of new revenue for the City.

Notably, the Department already has plans to implement the employee’s suggestion. In FY 04-05, the Department intends to install several ATM-like kiosks throughout the City on a trial basis to give probationers the ability to report to probation officers from remote locations. According to Department staff, these kiosks would also accept credit card payments for probation fines.

Currently, the Adult Probation Department accepts payment of fines in the form of cash, check, cashier’s check or money order. It does not accept credit card payments.

Section 10.11-1 of the City’s Administrative Code authorizes City departments to accept credit card payments for charges in excess of $10. However, department officials must obtain approval from both the City Treasurer and Controller to do so.

The Department already has plans to implement the employee’s suggestion. In FY 04-05, the Department intends to install several ATM-like kiosks throughout the City on a trial basis to give probationers the ability to report to probation officers from remote locations. According to Department staff, these kiosks would also accept credit card payments for probation fines. The City would rent the kiosks at no cost to the City from Syscon Inc. (a private vendor) during a 6-month trial period. Kiosk maintenance costs would be borne entirely by Syscon Inc. during the trial period. If the Department deems that the kiosks are successful, it would purchase the kiosks and assume their ongoing maintenance costs.

The proposed plan calls for the City Treasurer to accept the credit card payments and absorb any standard credit card user fee charged by credit card companies (at least through the trial period).

The Department advises that there is a large population of indigent probationers in San Francisco who do not have credit cards. These probationers would continue to pay for their fines with cash, check, cashier’s check or money order. If so, the proposed plan would generate only a limited amount of new revenue for the City.