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Senate approves ban on swipe fees by large card networks after tight vote
Summary
The Senate passed Senate Bill 134, prohibiting very large financial institutions from charging swipe fees on sales tax collections; proponents said it aids small businesses while opponents warned of litigation and uncertain consumer savings. The measure passed 18–17.
The State Senate on May 1 approved Senate Bill 134, a measure that would bar institutions with more than $60 billion in assets from charging payment-card swipe fees on sales-tax collections.
Senator Linstead moved for third-reading passage after the bill title was read. In floor remarks, Senator Donna Gonzalez framed the vote as relief for small businesses and described intensive lobbying around the bill. "Shall an institution with over $60,000,000,000 in assets be prohibited from charging swipe fees on the sales tax that is collected," she said, calling the policy "a rather straightforward proposal" aimed at helping restaurants and small merchants.
Gonzalez acknowledged competing concerns, including warnings from opponents that the bill could prompt legal challenges and costly litigation. "Opponents say this is gonna get ... in the courts and will cost the state untold amounts in litigation costs," she said on the floor, noting federal preemption guidance issued to interfere with state interchange-fee prohibitions. Gonzalez urged senators to "vote your conscience" and suggested consumers can help local businesses by paying cash.
After limited further discussion, the Senate recorded 18 ayes and 17 nos; the clerk announced that Senate Bill 134 had passed. The vote was closely divided along varying lines of policy and fiscal caution, and sponsors did not list additional co-sponsors at the time of passage.
The bill now moves to the next steps in the legislative process for enrollment and, if applicable, the governor's consideration.
(For the record: the title of SB134 was read into the record by the clerk and sponsorship noted as Senators Linstead and Judah and Representatives Durand and McCluskey.)
