CHAPTER 26

(HB 1111)

Electronic payments may be used by the state and local governments.

         ENTITLED, An Act to  permit local government officials and employees to use electronic payments and to permit the state and its political subdivisions to accept electronic payments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 4-3-27 be amended to read as follows:

     4-3-27.   Notwithstanding any other provision of law, local government officials and employees may be permitted to use a credit card or electronic payment for the purchase of materials, supplies, equipment, or other authorized transactions for the benefit of the local government entity. Before authorizing the use of a credit card or electronic payment , the governing body shall, by resolution, establish policies providing for the use and accountability of credit card purchases or electronic transactions. However, no local governing body may mandate that the recipient of the payment for goods or services, other than payroll, shall accept payment by electronic transaction .

     Section  2.  That § 4-3-28 be amended to read as follows:

     4-3-28.   Notwithstanding any other provision of law, the state and its political subdivisions may accept a credit card or , a debit card , or an electronic payment as payment for a transaction. The state and its political subdivisions may assess and collect a fee in an amount sufficient to cover any processing fee associated with a credit card or , debit card , or electronic transaction. The Bureau of Finance and Management shall promulgate rules pursuant to chapter 1-26 relating to the establishment and collection of a processing fee associated with a credit card or debit card transaction. The governing body of each political subdivision may, by resolution, establish and collect a processing fee associated with a credit card or , debit card , or electronic transaction.

     Signed February 13, 2007

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