Committee backs SB 17 allowing state contract recovery of credit-card processing fees

Representative Wintern told the committee that SB 17 responds to a legislative audit that found a missed step in the state’s procurement/processing approach for credit-card fees. The bill clarifies how a recovery fee charged by a credit-card processor may be handled and makes it clear organizations on the state contract — including higher-education institutions and local education agencies — can use the contract to process electronic payments.

The sponsor described the change as narrowly administrative and limited to entities that participate in the state contract; no public comment was offered. Representative Keller moved that the committee favorably recommend SB17 to the full House; the committee approved the motion by voice vote.

Committee members characterized the change as corrective to prior oversight identified by auditors rather than a policy expansion. The bill will go forward to the full House for consideration.