AZ HB2587

Authorizes the state treasurer to contract with authorized agents for electronic processing of transactions, with selection exempt from competitive bidding requirements but using substantially similar procedures.

Allows state agencies to impose convenience fees on credit card transactions, except for permits, licenses, vehicle registration, and driver licensing, with fees limited to offsetting authorized agent processing costs.

Requires state agencies to report annually by October 1 the number of transactions, electronic transactions, total transaction amounts, and all discount, processing, and convenience fees to the governor, department of administration, and joint legislative budget committee.

Enables local governments (cities, towns, counties, community colleges) to accept credit cards on majority vote and charge convenience fees only to offset discount or processing fees, with prohibition on retaining any excess fees.

Requires state treasurer to issue a request for proposals for electronic transaction processing by January 1, 2017, and prohibits state agencies from independently contracting for such services without treasurer authorization.