D. Edney - August 4, 2025 - Processing Fees for Electronic Payment Systems Associated with Regulatory Programs

550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 August 4, 2025 Dr. Daniel P. Edney, State Health Officer Mississippi State Department of Health Post Office Box 1700 Jackson, Mississippi 39215-1700 Re: Processing Fees for Electronic Payment Systems Associated with Regulatory Programs Dear Dr. Edney: The Office of the Attorney General has received your request for an official opinion. Background According to your request, the Mississippi State Department of Health (“MSDH”) is looking to move to electronic payment systems to eliminate the process of submitting paper checks to pay for fees associated with regulatory programs. The fees paid to MSDH associated with regulatory programs are set by statute. Most third-party vendors charge users a separate processing fee to submit their payments. The processing fee goes directly to the third-party vendor. Because the processing fee would cover the cost of the platform, the online payment platform would be offered at no cost to MSDH. Question Presented May MSDH assess users a processing fee, which would go directly to a third-party vendor, to cover the cost of an online payment platform for regulatory fees, or would this be seen as increasing regulatory fees without statutory authority? Brief Response Mississippi Code Annotated Section 27-104-33 allows MSDH to utilize an electronic payment system with third-party vendor fees assessed to the user so long as the system complies with the Mississippi Department of Finance and Administration’s (“DFA”) policies regarding the same. Section 27-104-33 specifically provides, “[a]ny fees or charges associated with the use of such electronic payments shall be assessed to the user of the electronic payment as an additional charge for processing the electronic payment, so that the user will pay the full cost of using the electronic Dr. Daniel P. Edney August 4, 2025 Page 2 550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 payment.” Accordingly, assessing a processing fee, which would go directly to a third-party vendor, to cover the cost of an electronic payment platform does not constitute an increase in regulatory fees without statutory authority. Applicable Law and Discussion You ask if MSDH may assess users a processing fee, which would go directly to a third-party vendor, to cover the cost of an electronic payment platform for regulatory fees, or if that would constitute an increase in regulatory fees without statutory authority.1 Section 27-104-33 charges DFA with establishing policies to allow the electronic payment of fees to state agencies: The State Department of Finance and Administration shall establish policies that allow the payment of various fees and other accounts receivable to state agencies, and the payment for retail merchandise sold by state agencies, by credit cards, charge cards, debit cards and other forms of electronic payment in the discretion of the department. Any fees or charges associated with the use of such electronic payments shall be assessed to the user of the electronic payment as an additional charge for processing the electronic payment, so that the user will pay the full cost of using the electronic payment. Agencies, with the approval of the Department of Finance and Administration, may bear the full cost of processing such electronic payments if the agency can demonstrate to the department’s satisfaction that they are able to assume these costs and provide the related service for the same or lesser cost. However, state agencies may bear the full cost of processing such electronic payments for retail merchandise sold by state agencies. As shown, absent express approval from DFA otherwise, Section 27-104-33 orders “[a]ny fees or charges associated with the use of such electronic payments shall be assessed to the user of the electronic payment as an additional charge for processing the electronic payment, so that the user will pay the full cost of using the electronic payment.” (emphasis added).2 It is the opinion of this office that Section 27-104-33 allows MSDH to utilize an electronic payment system with third- party vendor fees assessed to the user so long as the electronic payment system complies with these DFA policies.3 Such use would not be seen as increasing regulatory fees without statutory authority. 1 Pursuant to Section 41-3-65, Except as otherwise provided by law, the State Board of Health or the State Department of Health may increase the amount of any fee charged by the board or the department for providing a service, including the issuance and renewal of licenses and registrations, not more than two (2) times during the period from July 1, 2016, through June 30, 2020, with the percentage of each increase being not more than fifteen percent (15%) of the amount of the fee in effect at the time of the increase. 2 See also 12 Miss. Admin. Code Pt. 4, R. 2.1 (establishing DFA policies in accordance with Section 27-104-33). 3 We advise conferring with DFA regarding any additional requirements and restrictions pertaining to such electronic Dr. Daniel P. Edney August 4, 2025 Page 3 550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 If this office may be of any further assistance to you, please do not hesitate to contact us. Sincerely, LYNN FITCH, ATTORNEY GENERAL By: /s/ Maggie Kate Bobo Maggie Kate Bobo Special Assistant Attorney General payment system.