(1) The State Treasurer, with state agency approval, may electronically collect a bad debt and a fee from a debtor of the state agency equal to the cost of processing any payments for returned check charges or charges for electronic payments not accepted, except that the fee shall not exceed thirty dollars. The fee shall be remitted to the State Treasurer Administrative Fund.

(2) After the payor has originated two bad debt payments to a state agency in a period of one year, the state agency may refuse to accept future payments by check and may require a money order, cash, a cashier’s check, or a certified check for payment.