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Committee backs SB 17 allowing state contract recovery of credit-card processing fees
Summary
SB 17 would allow certain entities to use the state credit-card processing contract and recover processing 'recovery fees'; sponsor said the change responds to a 2024 audit and focuses on higher education and local LEAs.
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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.
