The House Labor and Commerce Committee introduced a committee substitute to Senate Bill 79 on pay‑card processing and adopted the substitute for consideration. Committee staff summarized new statutory language that would prohibit interchange fees on the tax and gratuity portion of electronic payment transactions, allow merchants up to 180 days to submit documentation, and establish a civil penalty of $1,000 per violation plus refund requirements.

Evan Anderson, committee staff, summarized the CS and said it adds sections to AS 6.09.020 that: bar issuers or payment networks from charging interchange fees on tax or gratuity when merchants provide proper documentation during authorization; permit merchants to provide documentation up to 180 days after a transaction if it was not transmitted initially; require issuers to refund interchange fees within 30 days of receiving documentation; and limit the use of transaction data to processing and legal requirements. The CS also amends AS 45.50.471(b) to add a new violation for misuse of electronic payment transaction data.

Senator Bjorkman and staff were present in the gallery. Several committee members asked whether the CS would be re‑noticed for public testimony; the chair set public testimony on the committee substitute for Monday, May 12, and set an amendment deadline of 10:00 a.m. on Monday, May 12. The committee did not take final action on the substitute on May 9 and set it aside for the scheduled public hearing.