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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                             CHAPTER 13-S.F.No. 509 
                  An act relating to local government; authorizing the 
                  use of credit cards by city and town officers and 
                  employees; providing for payment of city and county 
                  obligations by electronic transfer or credit card; 
                  authorizing electronic approvals; amending Minnesota 
                  Statutes 2000, section 471.38, subdivision 1; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 471. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 471.38, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ITEMIZATION; DECLARATION.] Except as 
        provided in subdivision 2, where an account, claim or demand 
        against any county, local social services agency, county board 
        of education for unorganized territory, school district, town or 
        home rule charter city of the second, third or fourth class, or 
        any park district, for any property or services can be itemized 
        in the ordinary course of business, the board or officer 
        authorized by law to audit and allow claims shall not audit or 
        allow the claim until the person claiming payment, or the 
        person's agent, reduces it to writing or an electronic 
        transaction record, in items and signs a declaration to the 
        effect that such account, claim, or demand is just and correct 
        and that no part of it has been paid.  The board or officer may 
        in its discretion allow a claim prepared by the clerk or 
        secretary of such board or officer prior to such declaration by 
        the claimant if the declaration is made on the check or 
        order-check by which the claim is paid, as provided in section 
        471.391, subdivision 2. 
           Sec. 2.  [471.381] [CITY AND COUNTY OBLIGATIONS AND 
        PAYMENTS.] 
           Subdivision 1.  [PAYMENT METHODS.] Payments of claims and 
        obligations of a statutory or home rule charter city or county 
        may be made by warrant, check, or all forms of electronic or 
        wire funds transfer.  If the city or county may make 
        investments, it may make electronic or wire transfers of funds 
        notwithstanding any other law to the contrary. 
           Subd. 2.  [AUTHORITY TO ACCEPT PAYMENT BY CREDIT CARD OR 
        OTHER METHODS.] A statutory or home rule charter city or a 
        county may accept payment by use of a credit card, debit card, 
        or all forms of electronic or wire funds transfer.  Subject to 
        any other law to the contrary, the city or county may add to the 
        amount due a service charge for the acceptance of a payment 
        method authorized in this subdivision.  The city or county shall 
        adopt policies and procedures regarding the payments.  The 
        payment of property taxes by credit card is subject to section 
        276.02.  
           Subd. 3.  [ELECTRONIC APPROVAL.] "Electronic approval" 
        means any electronic identifier intended by the person making, 
        executing, or adopting it to authenticate and validate a city or 
        county administrative action.  Notwithstanding any other general 
        or special law to the contrary, a statutory or home rule charter 
        city or a county may use electronic approvals, which have the 
        same validity and consequences as an actual signature.  The city 
        or county must establish policies and procedures to ensure the 
        validity of electronic approvals. 
           Sec. 3.  [471.382] [CREDIT CARDS.] 
           A city council or town board may authorize the use of a 
        credit card by any city or town officer or employee otherwise 
        authorized to make a purchase on behalf of the city or town.  If 
        a city or town officer or employee makes or directs a purchase 
        by credit card that is not approved by the city council or town 
        board, the officer or employee is personally liable for the 
        amount of the purchase.  A purchase by credit card must 
        otherwise comply with all statutes, rules, or city or town 
        policy applicable to city or town purchases. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Section 3 is effective the day following final enactment. 
           Presented to the governor April 4, 2001 
           Signed by the governor April 6, 2001, 10:14 a.m.