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Minutes for HB2316 - Committee on Taxation

Short Title

Eliminating the prohibition of a surcharge when purchases are made with a credit or debit card.

Minutes Content for Mon, Feb 22, 2021

Ms. Kovar-Donohue provided an overview on HB2316  that would repeal K.S.A. 16a2-403 which is the statute dealing with financial transactions that prohibits sellers from imposing a surcharge when a credit or debit card is used to make a purchase. (Attachment 9)

Ms. Smith, Department of Revenue stated HB2316 would have no fiscal effect on state revenues or expenditures.


Tom Palace, Fuel True, Independent Energy & Convenience representing over 250 independent Kansas Energy distribution companies and convenience store retailers throughout Kansas testified as proponent for HB2316 noting the bill allows retailers that accept credit cards to pass credit card fees to consumers just like the state and local government do when Kansas consumers pay taxes with a credit card. The convenience stores as a retailer accepts credit cards as a form of payment and amounts to 85% of all sales and 100% for fuel pump sales.  Mr. Palace noted credit card theft has been a problem for years and theft at the fuel pump is a growing problem.  To end the liability, credit card companies will soon require fuel dispensers to accept EMV cards based upon a technical standard for smart payment cards and for payment terminals and automated teller machines. EMV requires retailers to retrofit a dispenser to accept these cards which is very expensive and will force some members out of business.  He noted the passage of HB2316 will allow retailers the ability to pass on credit card fees to their customers. (Attachment 10)

Mr. Palace stood for questions from Committee members. 

Scott Schneider, Hinkle Law Firm testified on behalf of the Kansas Restaurant & Hospitality Association as a proponent for HB2316.  He noted eliminating K.S.A. 16a-2-403 from statute will allow businesses to disclose to customers their actual costs.  (Attachment 11)

Mr. Schneider stood for questions from Committee members.

Amy Campbell, Kansas Association of Beverage Retailers testified as a proponent for HB2316.  Kansas is one of four states that currently prohibit surcharges on purchases made with a credit card that cost the retailer money.  Changing K.S.A. 16a-2-403 will provide a benefit to retailers. (Attachment 12)

Ms. Campbell stood for questions from Committee.

Written testimony as a proponent to HB2316 was presented by Eric Stafford, Vice President of Government Affairs, Kansas Chamber. (Attachment 13)

Chairperson Smith closed the hearing for HB2316.

Chairperson Smith adjourned the meeting at 4:44 pm.