SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

FRASER JEFFERY S

(Last)

(First)

(Middle)

C/O NIC INC.

10540 SOUTH RIDGEVIEW ROAD

(Street)

OLATHE

66061

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
NIC INC [ EGOV ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	X	10% Owner
X	Officer (give title below)		Other (specify below)
	Chairman and CEO

3. Date of Earliest Transaction (Month/Day/Year)
05/04/2006

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	05/04/2006		M		63,800	A	$2.57	365,731	D
Common Stock	05/04/2006		S		13,158	D	$6.05	352,573	D
Common Stock	05/04/2006		S		30,291	D	$6.07	322,282	D
Common Stock	05/04/2006		S		1,509	D	$6.08	320,773	D
Common Stock	05/04/2006		S		13,432	D	$6.1	307,341	D
Common Stock	05/04/2006		S		800	D	$6.11	306,541	D
Common Stock	05/04/2006		S		500	D	$6.12	306,041	D
Common Stock	05/04/2006		S		100	D	$6.14	305,941	D
Common Stock	05/04/2006		S		2,310	D	$6.15	303,631	D
Common Stock	05/04/2006		S		500	D	$6.17	303,131	D
Common Stock	05/04/2006		S		400	D	$6.18	302,731	D
Common Stock	05/04/2006		S		800	D	$6.19	301,931	D⁽¹⁾⁽²⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option (Right to Buy)	$2.57	05/04/2006		M			63,800	05/14/2004	05/14/2006	common stock	63,800	$2.57	0	D

Explanation of Responses:

1. The Reporting Person also indirectly owns 21,450,805 shares of NIC Inc. common stock, which are held directly by the National Information Consortium Voting Trust, for which the Reporting Person and Ross C. Hartley act as trustees. Of this amount, the Reporting Person indirectly owns 1,023,251 shares held directly by the Voting Trust for the benefit of a trust, of which the Reporting Person is the beneficiary, and 4,401,405 shares held directly by the Voting Trust for the benefit of entities of which the Reporting Person acts as manager; however, the Reporting Person disclaims beneficial ownership over 1,852,717 of the shares held by one entity.

2. The Reporting Person also directly owns the following employee stock options to purchase NIC common stock: (i) 150,000 shares at $3.34 per share, exercisable in four equal annual installments, beginning August 1, 2004, (ii) 20,000 shares at $7.67 per share, all of which are currently exercisable, (iii) 25,000 shares at $4.15 per share, exercisable in four equal annual installments, beginning on November 5, 2005, and (iv) 10,000 shares at $6.16 per share, exercisable in four equal annual installments, beginning on November 8, 2006.

	Stephen M. Kovzan, Attorney-in-Fact	05/04/2006
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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