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Utah House Rejects Proposal to Raise Merchant Bad‑check Fee After Heated Floor Debate
Summary
After hours of debate over whether raising the merchant dishonored‑check fee from $15 to $25 would help small merchants or punish low‑income consumers, the Utah House on Feb. 10, 1997 defeated the substitute measure 25‑46. The session also advanced several other bills to the Senate, including measures on housing, juvenile court access and elk farming.
The Utah House of Representatives rejected a substitute bill that would have raised the statutory merchant fee for dishonored checks from $15 to $25 after extended floor debate and several failed amendment votes.
Representative Lloyd W. Franson, the bill’s sponsor, told the chamber the change “is changing $15 to $25” to allow merchants to recover the cost of processing dishonored checks and to provide an incentive for retailers to handle collection internally rather than use third‑party collection agencies. Franson framed the proposal as a fairness measure for merchants who incur time and expenses to pursue payment.
Opponents on the floor said the increase would disproportionately hurt low‑income consumers and risked creating a larger business for collection agencies. Lawmakers raised examples of students and month‑to‑month households who could face steep fees for small errors, and argued automation and check‑verification services reduce merchants’ costs. One lawmaker urged caution, saying the people “we are hitting most… are people who live month to month just barely getting by.” (Statement unattributed in the transcript.)
Much of the debate centered on statutory language that could allow merchants either to collect a flat service charge or to pursue civil remedies that recover “actual costs of collection.” Lawmakers disagreed about whether the substitute would make $25 a cap or merely one option alongside other recoverable costs. Representative Aaron and others proposed targeted amendments to remove duplicative language and to clarify whether attorney fees and court costs could be added; the chair ruled one proposed amendment failed and later the body adopted a cleanup amendment removing repeated “service charge” language.
After debate and votes on amendments, the House took a recorded vote on Substitute House Bill 218. Voting closed with 25 yes and 46 no; the substitute failed and will be filed.
Votes at a glance (floor actions from Feb. 10, 1997): - Substitute House Bill 218 (merchant dishonored‑check fee): FAILED, 25 yes, 46 no (vote announced in SEG 1551–1555). - Substitute House Bill 91 (Cohabitant Abuse Act amendments): PASSED, 67 yes, 1 no (vote announced in SEG 429–431). The sponsor said the substitute clarifies that sheriffs serve ex parte protective orders and extends a presumptive civil timeframe to one year for domestic‑violence victims. - House Bill 63 (Olin Walker Housing Trust Fund appropriation): PASSED, 67 yes, 0 no (vote announced in SEG 546–548). Sponsors described matched funding and long‑term capitalization goals for affordable housing. - House Bill 81 (classroom supplies appropriation): PASSED, 69 yes, 0 no (vote announced in SEG 1636–1638). - Substitute House Bill 42 → first substitute House Bill 32 (juvenile hearings and records access): PASSED, 54 yes, 50 no (vote announced in SEG 1820–1822). The substitute changes access rules for juvenile hearings and lowers the record‑access age from 16 to 14 in specified cases while preserving judicial discretion to close hearings. - House Bill 90 (elk farming regulation): PASSED, 49 yes, 21 no (vote announced in SEG 2034–2036). The bill establishes licensing, containment and liability rules for domesticated elk and directs rulemaking and oversight. - House Bill 69 (continuation of the SHOCAP pilot and related information‑sharing): PASSED, 66 yes, 0 no (vote announced in SEG 2159–2161).
What happened next The failing of the merchant‑fee substitute leaves the current $15 statutory merchant fee in place. Bills that passed on the floor (HB91, HB63, HB81, HB42/32, HB90, HB69 and others) were reported to the Senate for consideration. The House adjourned to reconvene the following day at 10 a.m.
Reporting notes Direct quotes and attributions appear only when a speaker's identity is explicitly stated in the transcript. Other floor statements are paraphrased or labeled as unattributed when the transcript does not clearly link the remark to a named representative.
