S.B. 17 Credit Card Processing Fees Amendments

What this bill does

S.B. 17 would let higher education institutions join the state's credit card processing contract, which currently covers other government entities. It would allow those institutions to pass credit card processing fees on to cardholders if they choose, but would not require them to do so.

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Every vote

• 3 yes, 2 no, 2 absentSenate Education Committee: vote to approve it · Jan 21, 2026Who voted how
• 23 yes, 1 no, 5 absentFirst of two Senate votes · Jan 27, 2026Who voted how
• 29 yes, 0 noFinal Senate vote · Jan 28, 2026
• 6 yes, 0 no, 6 absentHouse Government Operations Committee: vote to approve it · Feb 3, 2026Who voted how
• 28 yes, 43 no, 4 absentHouse vote, which failed · Feb 5, 2026

Hearings and debates

• Jan 21, 2026 Senate Education Committee▶ Watch
  Transcript (26 turns)

  1. Committee chair32:05

     Okay, the first item on the agenda is, uh, Senator Winder SB 17 Credit card processing fees Amendment. Go ahead.

  2. Sen. Ronald M. Winterton32:21

     Okay. Thank you. Uh, this is a committee bill and, uh, it was brought to our attention that we're always looking for, you know, more revenue or cost savings. This one here, credit card, all it does is it allows the higher education agencies to pass along the processing fees that come along with the credit cards. We're absorbing that right now. So if we start there, uh, higher ed ed, sometimes it's three to $4,000 every single month. It could be hired besides the transactions. And so if we give them the ability to charge the person, the cardholder, those fees we're held neutral on that, and we're not paying it. So that's what the bill does. It's very simple. They said it doesn't go far enough, but, uh, that's what it is.

  3. Committee chair33:15

     Okay. Does that conclude your Presentation? That concludes it. Senator Fillmore. Thank you.

  4. Sen. Lincoln Fillmore33:21

     Uh, Senator Winterton, thank you for being here. I'm glad we get to hear this in education. I know it passed in government ops in the interim, but I hope you don't mind that. I wanted education to be the education committee to, to, No, I think it's appropriate there. So My question for you is, would this include any transaction at any public university higher, or are you thinking of just, uh, no, like tuition and credit Card transactions? So if I'm at shopping at the University of Utah bookstore, they could, would charge me an extra two or 3% for buying a textbook.

  5. Sen. Ronald M. Winterton33:58

     If, if they are being charged that, yes, that passes back to you.

  6. Sen. Lincoln Fillmore34:06

     I think this is a fine idea when it comes to tuition. I, uh, I really worry about it when it comes to retail purchases. Would you like to see it changed? But if, if we are paying it as a college, where are you putting it in the budget line item to cover those costs? Because that's an unforeseen cost that we don't have a line item for. And Mr. Chair, I, that's a, that's a fair question. Um, and I, I guess I think I understand this, but like, I'm just thinking of like, I'm, you, you go to the University of Utah Gymnastics meet, which I did not too long ago. It was fantastic. It was great. But, you know, you go to buy a popcorn and they're going to, it's like, okay, it's gonna be eight bucks. It's already outrageously priced anyway. You know, like they, they're already pricing this, uh, to cover, you know, just the cost of doing business, right? They've got labor costs and, and banking costs, and, you know, you replace that with cash and there's gonna be the cost of people counting cash. Uh, all of those things have a cost. It just seems, uh, uh, maybe I'm just approaching this as a, a, a retail business owner. I just cannot imagine. Do, like my customers would hate me. Yeah. Um, But as a business owner, Do you, so, like, for tuition, I get it. Do you, For concessions and, uh, and mints or gum at the bookstore? I just, I don't know. It just seems nickel and d At what point does the charges become effective? Is that what you're asking? Or do we need to make some kind of exclusion on this? Because, uh, the retail, uh, market and, and the, and, uh, uh, restaurants, they came and said, you're not going far enough. One restaurant said it costs them $40,000 a year in these bank charges that they don't recover. That's the business cost.

  7. Sen. Ronald M. Winterton35:52speaker not certain

     Mr. Chair, that's a, a, a restaurant that's owned by the university. No. Or that operate To the university Private. And I said, this bill only addresses government a higher ed right now. But you bring up a good point.

  8. Sen. Lincoln Fillmore36:04

     We didn't have that discussion as far as what are the small items? At what point do we get charged that, is there a dollar fee before they start assessing it? Do you go up to $20 before you get assessed at, uh, two or 3%? So I take that point and I take Mr. Chair, is is he saying that the, uh, the universities say this doesn't go far enough, or that private business also wants the ability private Business would like it extended into their businesses. And yet Here We're just looking at from our standpoint, a as the state and we operate those, we are getting charged for these. Is it truly our charge? I, I, so let me speak as a business owner again. Okay, Mr. Chair. So my three biggest expenses are labor, rent, credit card fees. So I understand the pain, but I also, I mean, I think everybody understands that the cost of those credit card fees are wrapped up in the cost of the product, right? Um, it costs two or 3%. Not everybody pays with a credit card, but most people do. Uh, and so the price that you pay when you're making the purchase reflects the fact already that the cost of processing a transaction is in addition to the cost of the product, whatever that product or service is. Um, and lemme tell you, don't get me started on gift cards, right? I still have to pay the processing fee on gift cards, and they're gonna go, might might go spend it at somebody else's store. It sucks. Um, but again, it's all priced in. And I guess my worry here is that the universities have priced this in two, um, and we're gonna give them the ability to charge their students another 3%. And I doubt that that's going to be reflected in the price. Do you know what I mean? I, I don't see the university being like, oh, thank goodness. Now we can adjust tuition down by two point a half percent and then only charge 3% to people who pay with a credit card. I think the price will stay the same and it will be a windfall. Um, that said, the fact that I have some beefs with it, I don't, uh, I don't mean mean to belabor this, but those are the concerns that I've got about it. Um, and, um, I, I appreciate that the sponsor is willing to have conversations about, you know, if there's a price limit or only for certain kinds of goods or, or things like that. But I'll yield my light. Okay.

  9. Committee chair38:32

     Any other, uh, questions from members of the committee? No more questions. Okay. We will, uh, go to members of the public. Anyone like to speak to this bill, come, come up. State your name for the record and, uh, sign in. Tell us who you represent.

  10. Ella Frandsen, student39:04

      Um, my name is Ella Franon. I'm a current senior in high school. Uh, I'm committed to the University of Utah for the upcoming fall semester. I didn't plan to speak on this, but I think, uh, Senator Fillmore good points that it's already priced into the cost. And I, he, with bringing up the bookstore example, I think it's a fair point. Like everyone hates extra fees. Like there's even laws in other cities or states saying like, you have to have fees up front. And I think everyone just prefers if things are factored into the cost versus coming after the fact. 'cause it's a lot easier to budget. Like if I have to budget an extra two to 3%, like that's fine, I can do it, but it's a lot easier if it's just included in the upfront price. So I think we should keep it how it is and just let it stay within the price and have the universities account for it in their budgets. Thank

  11. Committee chair39:53

      You. Thank you. Any other comments? So we'll come back to the committee, I guess for if, if public, If public comment is done.

  12. Sen. Lincoln Fillmore40:06

      Mr. Chair, I might ask, is there anybody from higher ed that's here? So, you know, the sponsor mentioned that businesses would like to do this too. And the, the truth is they do, but they do it by offering a discount for paying with cash, right? It's like we, we post a price, and if you pay cash, you save, you know, you save some percent. Um, do the universities, current colleges currently offer a discount for paying tuition in cash or via a CH?

  13. Committee chair40:40

      Go ahead. Go, uh, state your name for the record.

  14. Nate Talley, Deputy Commissioner and CFO, Utah System of Higher Education40:42

      Good afternoon. Yes, sir. Uh, Nate Talley, deputy Commissioner, CFO for the Utah System of Higher Education. Uh, thank you, Senator. I will actually have to check with our institutions to, um, identify that more precisely and make sure, uh, we're getting proper information to the committee. Uh, if I can just kind of take the 30,000 foot view for, um, for this bill specifically with respect to, to higher education. The bill doesn't require higher education institutions to pass on credit card processing fees to students. And there's nothing in code that prohibits that now, Uhhuh, uh, most institutions do not pass through those fees. Now, now, I appreciate what you're saying. As an economist, right, uh, uh, the, uh, costs are reflected in the price paid, and, uh, there's a consumer and, uh, producer surplus. And these costs from employers are, are, uh, absorbed and ultimately passed through, uh, to consumers. Uh, with respect to higher education, though, uh, I, I'm not, uh, certain that that's necessarily happening on the, on the tuition fee side. Uh, the bill itself is responsive, of course, to the Office of Legislative Auditor General's, uh, 20 24 18 performance audit on credit card processing fees, and the potential advantage for institutions to jump on the state contract for credit card processing fees. So this is sort of a, a, a kind of wonky way of getting there in that, uh, if you're an institution that does already pass through fees, now, you would be prohibited in, uh, from participating in the state contract unless state code supersedes that contract, which is what this bill is doing. So, uh, we actually, as you see in the fiscal note, you know, with respect to affordability for students, to whatever degree this isn't already baked in the price of tuition, we would discourage our institutions from passing it through to students because it just makes it more expensive, uh, for institute for students to attend those, those institutions, if they were to do that. Uh, I think our, our view would simply be to continue to explore, you know, opportunities for, for participating in the state contract independent of whether or not an institution would pass through these fees.

  15. Committee chair42:37

      Okay. Thank you. Any other, uh, comments from the public? Got it. Okay. If not, we'll return to the committee, uh, for, uh, clarifying questions. And action. Uh, Senator Hinkins.

  16. Sen. David P. Hinkins42:55

      Thank you, Mr. Chairman. I would like to make a motion that we pass out Senate bill 17 with the favorable recommendation.

  17. Committee chair43:02

      Okay. The motion on the table is to pass out Senate bill 17 with a favorable recommendation. Any discussion on the motion?

  18. Sen. Lincoln Fillmore43:15

      Uh, sure. Mr. Chair, Go, go Ahead. I think I'll be a no. Um, but I'm open to the idea. I just would like to see a bit some, some more guardrails here. I do think this actually makes a lot of sense to either offer a discount by paying with cash, especially for big items like tuition. Um, but I think that this, uh, is creating too big of a, uh, of a tunnel. So anyway, perhaps we can, uh, keep working on that and I can talk to somebody from higher ed about it.

  19. Committee chair43:43

      Senator Rebi.

  20. Sen. Kathleen A. Riebe43:45

      Thank you. I'm, uh, Noah on this bill too. I, I like the idea of it, but when I start thinking about our lower income students trying to budget properly, having those extra fees is really problematic when you are really on a tight budget. Um, and then also, uh, to the point that Senator Fillmore made, you know, providing a cash discount like many other stores. And, um, gas stations do this as well, that if you're going to be making something cheaper by not getting those fees, you should have that taken off your fee as well. So I think there's some avenues to explore here, but, um, right now I'm a no

  21. Unknown speaker44:25speaker not certain

      Nothing in a code that prevents us from doing. Are you, are you trying to comment because It's just about particip. Okay.

  22. Committee chair44:42

      Okay. Given no further, uh, comments, I'm gonna come back to Senator Winterton to sum. Sorry. Huh, Senator. Okay. Uh, Oh, do you have another question? I would Like to sum when he gets through? Okay. Yeah, we'll come

  23. Sen. Ronald M. Winterton44:57

      Back to you. No, I appreciate the motion and, uh, again, I, I appreciate the clarification that this is addressing the audit. Uh, what they found doesn't prohibit prohibit them from doing it right now, but they want to be in on the state contracting, uh, pool. And, and this would allow that to happen. So it was, staff recommended it came out as a committee bill because they thought that this would clear up some of the practices right now. So thank you. I'd encourage your support on that. Okay.

  24. Committee chair45:31

      Go ahead, Senator. Thank you. Thank you, Mr. Chairman.

  25. Sen. John D. Johnson45:33

      I, I actually, uh, have credit cards. Lots of them, too many. And, uh, I'm the one that gets the benefits. 'cause the reason they charge two and 3% on credit cards is because they give you miles towards airlines and different things like that. And I've paid for my grandchildren's tuition at times and things like that when they've had tough, tough times or whatever. And, and, uh, paying the 3%, you know, I'm the one that gets the frequent filer miles or whatever it might be. Uh, the state shouldn't have to pay for that. And so they're the ones that's getting the benefits of that because that's why they have to charge so much is 'cause of all their perks and stuff to get 'em to buy their, to use their credit cards. And so I think it's justified that they're the ones getting the perks. They should be the ones that do the paying and not the state. So anyway, I would like to see this, uh, bill pass out.

  26. Committee chair46:20

      Unanimous. Okay, thanks. Uh, so the motion on the table is to pass out, uh, not to pass out, but to send out No, to pass, uh, SB 17 to recommend SB 17 credit card processing fees, amendment to the full body of the Senate. Uh, all in favor say aye. Aye. Aye. Any opposed? Well, There goes my Senator. Rebe, were you a No, I was a, yes. Okay, so I'm a yes Johnson, and no, I'm, I'm a yes. Three to Two, please. A Yes. Okay, great. Okay, so three to two with, uh, Rebe and Fillmore as negative. And so the bill passes. Thank you very much. Thank you.

• Jan 27, 2026 Senate floor debate▶ Watch
  Transcript (13 turns)

  1. Senate President (presiding)47:27

     The bill is encircle. Senator Winterton.

  2. Sen. Ronald M. Winterton47:30

     Okay, thank you. Uh, this was a government operations interim committee recommended bill. It's following up on an audit that, uh, legislative auditors did back in 2024. Uh, this item was overlooked and it has to address credit card processing fees and we have a state contract and because we do, some of them can participate in it and some can't. And this bill opens a way up where they can be part of the state contract and so, uh, it just helps some so that they can, uh, uh, forward the fees on to the credit card owners if, if that's what the institution and this is for higher ed and that's all it does. Thank you for that explanation.

  3. Senate President (presiding)48:20

     Do we have discussion to the bill? Senator Fillmore? To the bill?

  4. Sen. Lincoln Fillmore48:25

     Thank you Mr. President. I voted against this in committee and I would like to let the sponsor know that I've had something of a change of heart here. Um, I do think that the bill is too broadly drafted. Uh, you know, the university can already do this and, and from what I understand they already do. I would be very disappointed if this authorization, you know, led to the university bookstore charging these fees on when people buy candy bars or something, uh, which, uh, would be allowed under the statute. But I understand there's nothing prohibiting them from doing it now. And the point of this bill is not to create this or open up this avenue so that they can start doing it, but rather bringing them into compliance so that they can get lower fees on their credit card processing by being part of the state contract. And I support that. So I'll be a yes on the bill.

  5. Senate President (presiding)49:10

     Thank you. Thank you. Further discussion. Senator Winterton, back to you

  6. Sen. Ronald M. Winterton49:17

     With that I'd call the question.

  7. Senate President (presiding)49:19

     Thank you. And the question is, shall Senate bill 17 be read A third time? Roll call vote.

  8. Senate clerk49:25

     Senator Vickers Baldry Aye. Lewin Brammer Aye. Bus Gilmore Aye. Escamilla Aye. Fillmore Aye. Grover Harper Kinins. Ipson Aye. Johnson Aye. Juab McKay Mikel. Aye. Milner Musselman Owens pitcher Aye. Plum Aye. Rebi Aye. Sandal Stevenson Stratton Aye. Bickers Aye. Weiler Aye. Wilson Aye. Winterton Aye. President Adams Aye. Senate

  9. Senate President (presiding)50:24

     Bill 17, having received 23 yay votes one nay vote, five being absent shall be read a third time.

  10. Senate President (presiding)50:33

      Anybody else wanna encircle? Senator Fillmore, are you up?

  11. Sen. Lincoln Fillmore50:37

      I do, yes. I'd like to encircle Senate bill 58 and I'll make that motion.

  12. Sen. Lincoln Fillmore50:41speaker not certain

      Motion Uncer Senate bill 58 Public School Attendance amendments.

  13. Senate President (presiding)50:46

      All in favor say aye. Aye. Any opposed? Roll that motion passes. The bill is encircled. Senator Fillmore.

• Jan 28, 2026 Senate floor debate▶ Watch
  Transcript (5 turns)

  1. Sen. Ronald M. Winterton40:23

     of the Legislative auditor General released an audit of credit card processing fees, the focus of the state cooperative contract of which is required of all executive branch agencies and open to all other public entities compared to the contract secured by the LEAs. And, and, um, they base their analysts analysis, um, in the state is most likely getting the best rate and, and other entities should consider the potential benefits, uh, in participating on the state contract. And so this bill's addressing that last item on that audit and uh, it just says that they would be able to pass on the credit card fees if they're charged any.

  2. Speaker (presiding)41:10

     Okay. Thank you for the presentation. No discussion to you for a motion. A uh, motion that Senate Bill one seven pass. Thank you. And the question is, shall Senate bill one seven Shall Senate bill 17 pass Roll call vote.

  3. Unknown speaker (roll call)41:32speaker not certain

     Senator Vickers Baldy a Lewin Aye. Brammer bus Colmore Aye. Escamia Aye. Fillmore Aye. Grover Harper Hankins Aye. Ipson Ipson Johnson k Juab McKay Mikel Milner Musselman Owens Pitcher Plum Rebe Sandal Stevenson Aye. Stratton Aye. Vickers Aye. Weiler Aye. Wilson Aye. Winterton Aye. President Adams

  4. Speaker (presiding)42:27

     Aye. Senate Bill 17 having received 28 yay votes Senate Bill 17 having received now 29 yay votes, zero nay votes, zero being absent, passes his body and will be sent to the house for their consideration. Senate Bill 58, Senate Bill 58, public School Attendance Amendments. Senator Fillmore,

  5. Sen. Lincoln Fillmore43:00

     Senator Fillmore, Mr. President in response to an audit from the State Board of Education's internal auditor, uh, resulting in findings of, uh, uh, inconsistency and inaccuracy in the reporting of amendment data,

• Feb 3, 2026 House Government Operations Committee▶ Watch
  Transcript (14 turns)

  1. Committee chair (presiding)37:03

     Have a good day. Alright, uh, item number two, and my good friend Senator Winterton is all cocked, locked and ready to rock. Come on up here. Um, yeah, your, your mic is on. If you just, uh, go ahead and present your bill.

  2. Sen. Ronald M. Winterton37:18

     Okay. Thank you. This comes from our interim, uh, committee. Some of you would probably re remember it, but it was brought to our attention by the staff. But in 2024, uh, leg, uh, the legislative auditors went and audited and found out that, uh, we had missed a, a step here. And this is dealing with the credit card processing fees and it's on a state contract. And those that are not on it can't do this. And so, uh, we needed to, to pass this bill. It just addresses the recovery fee, uh, charged by a credit card company or processing agent to process an electronic payment. And this is for ue, the higher education and local LEAs. So by passing this, then it allows them to go in on the, uh, on the state contract. And that's the extent of this bill.

  3. Committee chair (presiding)38:15

     All right. Thank you Senator. Um, we'll, uh, go to the committee for clarifying questions. Any questions from the committee? Seeing none, we'll, uh, go to the public for comment. Raise your hand if you wanna comment on this bill. Pretty straightforward, no public comment. So we'll close public comment. Come back to the committee for, uh, further discussion and or action on Senate bill 17.

  4. Committee chair (presiding)38:46

     Representative Keller, let me get you, go ahead, Mr.

  5. Rep. Paul A. Cutler38:49

     Chair. I'd move that we favor the recommend SB 17 to the full house.

  6. Committee chair (presiding)38:54

     Alright, thank you. That's an order. Do you wanna speak to that?

  7. Unknown speaker38:57speaker not certain

     Uh, it seems to make a lot of sense and, uh, we've thoroughly vetted

  8. Committee chair (presiding)39:00

     It. Alright, thank you. Um, so that's the, uh, motion before us to, uh, favorably pass out Senate bill 17, um, to the, uh, sponsor.

  9. Sen. Ronald M. Winterton39:12

     I'll waive. I appreciate the motion.

  10. Committee chair (presiding)39:13

      Alright. Thank you. Uh, waive summation. Alright. Summation waived in both cases. And so the motion before us favorably pass out Senate Bill 17 voice vote. All in favor say aye. Aye. Any opposed? All right.

  11. Committee chair (presiding)39:28speaker not certain

      You know, sometimes I wonder how this wasn't in code already, but, alright. Overlooked? Yep. Thank you Senator. Have a good evening.

  12. Committee chair (presiding)39:38

      Never say the house didn't treat you right. And get you outta here quick. Thank you. Alright, next.

  13. Unknown speaker39:45speaker not certain

      Oh, could I, uh, beg a favor here. The Kohler's gotta get back to his committee.

  14. Committee chair (presiding)39:50

      And so we're gonna bring Kohl, uh, Representative Kohler up first. Uh, and then we'll get pick up Representative Cutler. So, uh, what's before us now is House Bill 1 67.

• Feb 5, 2026 House floor debate▶ Watch
  Transcript (3 turns)

  1. Meeting clerk36:48

     of the president, Madam Meeting Clerk Senate Bill 17 credit card processing fees amendments by Senator Winter Finn. This bill was heard in government operations with a vote of 6 0 6. The House sponsors representative Joseph Ellon, Representative Ellon.

  2. Rep. Joseph Elison37:07

     Thank you Mr. Speaker. So Senate Bill 17, this is a, a government operations, uh, interim committee bill, and it was in response to a 2024 legislative audit. And in the audit they found that, um, there was an item that was overlooked. Uh, we have a state contract that allows entities to be able to participate in, um, credit card, uh, fees and so forth throughout the state. And one area was left out and that was, uh, higher ed. Um, uh, the issue was left outta that. And so what this bill does is it says that it, it actually will allow them to be part of that con that state contract, which they were not part of, but it doesn't force anybody to charge credit card fees. It just simply says that they can if they want to. In the audit, they found that there was one entity that's already charging, uh, the credit card fees, but it's not requiring anybody to do so. But it's just saying that they put it in code that they can actually, um, do so if they, if they choose to.

  3. Speaker (presiding)38:07

     Thank you, Representative Eliason. Discussion to the bill Being none. Back to your Representative, Eliason for summation. I'll waive. Thank you. Summation has been waived. Voting will now be open on SP 17. Representative Shallenberger, representative C all present, having voted voting is now closed. SB 17 fails to pass this body and will be sent at fails to pass this body with 28 yes votes. 43 no votes will be sent to the Senate for filing. Okay, Madam Reading Clerk