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Committee advances bill to standardize online payment processing and procurement oversight after discovery of legacy board arrangements
Summary
Representative Britt McKenzie’s Junk Fee Elimination Act would dissolve a 1995 public‑private board (Information Network of Arkansas), move oversight into the state procurement system and seek greater competition to reduce credit‑card processing fees; the committee passed the bill after testimony from the sponsor and state technology staff.
Representative Britt McKenzie presented House Bill 1896, the “Junk Fee Elimination Act of 2025,” asking the committee to repeal the law that governs the Information Network of Arkansas (INA), a decades‑old public‑private arrangement that functions as the state’s “network administrator” for many online transactions.
McKenzie said the INA model has allowed a long‑standing incumbent processor to control a large portion of state agency online payments without going through standard state procurement competition. He described a constituent complaint about a short period when customers were charged an outdated 3% processing fee instead of the then‑announced 1.9% fee, prompting a deeper review of contracts and rulemaking.
“Anytime we can promote transparency and promote competition, it’s going to be the benefit of our constituents,” McKenzie told the committee. He said fiscal year 2024 saw about 1.7 million credit‑card transactions and roughly $7.3 million collected in processing fees; the bill would subject future contracts and services to the Office of State Procurement’s standard competitive processes.
McKenzie said he had met with the incumbent network administrator and that the company had not opposed the bill. Representative Meeks and others asked whether the duties would transfer to the Department of Information Services (now Office of State Technology) and whether the department was prepared to absorb any responsibilities. Leslie Fisken, Secretary of Transformation and Shared Services, testified the department had helped draft language and was prepared to take on the duties.
After public testimony and questions, the committee voted to pass HB1896. Sponsors said the change aims to increase procurement transparency, encourage competition, and reduce out‑of‑pocket processing fees for Arkansans.
