Let local governments pay claims electronically, House says

School districts can pay certain claims by electronic funds transfer. Other local units of government might be able to do the same.

Rep. Randy Jessup

The House passed HF997, sponsored by Rep. Randy Jessup (R-Shoreview), 131-0 Monday, sending the bill to the Senate, where Sen. Andrew Mathews (R-Milaca) is sponsor.

Jessup said current statute has “not been updated for modern commerce.” HF997 would allow local government entities to receive invoices and pay vendors electronically, he said.

Counties, local social service agencies, towns, park districts and home rule charter cities of the second, third and fourth class would join school districts in that ability if they enact a series of policy controls, including delegation of authority to make the transfers to an administrator, officer or another designee.

The bill would also repeal part of current statute that describes the form by which claimants declare their claims correct and not yet paid. It would provide that claimants make that declaration when they make the underlying claim. The statute does not apply to claims for salary or fees of jurors or witnesses, or to salary or wages of any employee paid on hourly, daily, weekly or monthly basis paid on a payroll basis.