Brief (1)
The bill would enact a new statute that would require state agencies to accept personal, certified, or cashier's checks or money orders for payment of fees, tuition, or other charges after July 1, 2000. The bill also would require agencies to accept credit cards for those payments after June 30, 2001. Prior to that date, agencies would be authorized, but not required to accept credit cards. The Department of Corrections would be exempt from the requirement.
Agencies also would be authorized to impose a fee to recover the actual amount of any cost incurred because of the method of payment used by the payee.
Background
The bill was introduced as a result of discussion that arose after enactment of 1999 SB 110 that requires the Board of Nursing to accept personal, certified, or cashier's checks, money orders or credit cards for payment of specific license and certificate fees. The introduced version of the bill would have imposed a similar requirement on all agencies that regulate professions.
Proponents of the introduced version of the bill who presented testimony to the House Committee on Governmental Organization and Elections included two licensed dietitians. The Kansas Insurance Department suggested possible amendments to the bill. The Director of Accounts and Reports in the Department of Administration presented a status report on its efforts to enable state agencies to accept credit cards for payment. No opponents of the bill presented testimony to the House Committee.
The Senate Committee on Ways and Means received testimony in support of the bill from two licensed dietitians and the Insurance Department. The Chair of the Board of Regents Council of Business Officers submitted testimony expressing concern on the potential impact the bill would have in areas of university operations that have low volume, low dollar transactions.
The Senate Committee on Ways and Means amended the bill to exempt fees charged by the Secretary of Corrections from the requirement to accept credit cards and to exempt state agencies and postsecondary educational institutions from the provisions of the Uniform Consumer Credit Code provisions which forbid charging fees for using a credit card.
The fiscal note prepared by the Division of the Budget for the introduced version of the bill stated that the transaction fee imposed by banks for credit card transactions would be a potential fiscal impact, but that the magnitude of that impact could not be estimated absent actual experience. The substitute bill would authorize recovery of actual costs incurred by state agencies because of the method of payment.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html