DCUC Issues Statement Following Colorado Governor’s Veto of SB26-134

The Defense Credit Union Council (DCUC) welcomes Colorado Governor Jared Polis’ veto of the SB26-134, recognizing concerns with its potential impact on consumers, small businesses, and financial institutions operating in Colorado. ​

DCUC previously urged the Governor to reject the legislation due to its far-reaching operational implications for payment systems and the broader financial ecosystem. In a May letter to the Governor, DCUC noted that while the proposal was framed as a narrow effort to address interchange on the tax portion of purchases, the bill’s underlying requirements would have imposed sweeping changes on how transactions are processed, settled, and disputed across the card system. 

As DCUC wrote, the legislation would have required “changes to how transactions are settled, how tax is reconciled after the fact, how exempt cards are identified, how fee schedules are built, and how payment disputes are defended in court,” effectively amounting to an operational mandate on the payment rails rather than a narrow pricing adjustment. 

“When policies reduce the resources community-based institutions can devote to fraud prevention, responsive service, and affordable products, military families often feel that loss first,” wrote Jason Stverak, DCUC Chief Advocacy Officer. “[T]his issue comes down to a simple question: should Colorado gamble with the reliability of the card system and the institutions that serve military families in exchange for consumer benefits that the bill does not clearly require, audit, or verify? We believe the answer is no.” 

“Governor Polis’ veto reflects a clear understanding of the complexity and interconnected nature of the payments system and the importance of avoiding unintended consequences for consumers and financial institutions,” says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. “We appreciate his leadership in recognizing these concerns and taking action to protect Colorado consumers, small businesses, and the credit unions that serve military and veteran families.” 
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DCUC will continue to engage with state and federal policymakers to support balanced, workable approaches that ensure credit unions can best serve and protect their members while preserving the stability and integrity of the payments system.