As Amended by House Committee on

Financial Institutions


H.B. 2904, as amended, concerns the process certain state agencies are to follow for the bidding of debit cards. The bill would require institutions under the supervision and control of the State Board of Regents entering into contracts for the use or acceptance of debit cards, to enter into such contracts only on the basis of competitive bids under the state competitive bid statutes or under state competitive procurement negotiating statutes.

The House Committee amendment would allow for competitive procurement negotiating for such debit card contracts.


H.B. 2904 was explained by Charles Hostetler, an independent insurance agent and banker from Manhattan. The conferee noted that Kansas State University was not required to bid and did not bid a debit card. As a result, the process was flawed and ended in a suit against the University. Passage of the bill would remove any appearance of a conflict of interest and ensure that the procedures were followed correctly and intelligently.

The Director of Purchasing for the state requested the amendment to allow competitive negotiating for debit cards, since such purchases are technical and require discussions of the offeror's bid to understand all the proposals.

H.B. 2904 would have no fiscal effect.

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