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Minutes for HB2541 - Committee on Taxation
Short Title
Allowing certain private not-for-profit postsecondary educational institutions to recoup credit card fees by permitting a surcharge for credit card transactions in the same manner as municipal universities, community colleges, technical colleges and vocational educational schools.
Minutes Content for Wed, Feb 19, 2020
Adam Siebers, Assistant Revisor provided an overview for HB2541 noting the bill would clarify that certain not-for-profit private post secondary educational institutions accepting payment of fees, tuition or other charges in the form of a credit card or debit card the ability to charge a surcharge.. There is in statue which prohibits sellers from imposing surcharges on cardholders who elect to pay by credit or debit in lieu of cash or a check.
Proponents:
Matt Lindsey, President, Kansas Independent College Association, representing twenty independent colleges of Kansas testified for HB2541 stating under current law in the corporate code that entities, vendors in Kansas who accept a credit card may not pass on the surcharge that a credit or debit card requires to the end customer. Kansas statute has an exemption for state or local governmental agencies including Regents, universities, community and technical colleges to pass on the surcharge. He noted Kansas law does not allow non-profit colleges to choose to pass this cost on. Instead, Kansas law requires non-profit colleges to absorb the credit card surcharge costs. The central principle for HB2541 is that the permission granted to pass on the credit card surcharge should include all Kansas-based educational entities, including the non-profit colleges (Attachment 1).
Written only testimony to HB2541 was presented by:
Clark Ribordy, Executive Vice President & Chief Financial Officer, Ottawa University, (Attachment 2).
Rick Tuxhorn, Vice President Finance, McPherson College, (Attachment 3).
Hearing closed on HB2541.
