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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	March 27, 2013 09:14 AM
From:	Representative Robert F. Matzie
To:	All House members
Subject:	Banning Internet Convenience Fees without Legislative Approval

Recently, the Commonwealth of Pennsylvania, through a sole source contract awarded a contract for the state web site for a five year contract, with a 5 year renewal option. This contract was described as “self-funded.” What this actually means is that is that for every single new feature, transaction or mobile application on the Commonwealth web site, the Commonwealth and company are going to separately negotiate whether a new “convenience fee” will be attached to that feature, transaction or mobile application or whether fees or subscriptions from other new transactions will be used. While the first and second pages of the contract contemplates that these fees will be placed on business to government transactions, nothing in the contract prevents these fees from being placed on every new type feature, transaction or mobile application through our web site. In fact the contract provides several examples of hypothetical transaction fees on everyday transactions by ordinary citizens. Missing in the contract is any mention that executive agencies should not be able to impose new fees without legislative advice and consent by the General Assembly. Of course, the legislature has in the past explicitly delegated the setting of some fees to different departments or boards. But this General Assembly has not given blanket authorization for the imposition of a new and separate fee by executive branch agencies to perform a transaction over our web site or through a mobile device. I will be offering legislation to require legislative approval for new internet convenience fees. It will simply and clearly limit “internet convenience fees” unless the General Assembly specifically authorizes them.

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