LCO No. 6175 1 of 5 General Assembly Committee Bill No. 1118 January Session, 2025 LCO No. 6175 Referred to Committee on GOVERNMENT ADMINISTRATION AND ELECTIONS Introduced by: (GAE) AN ACT PROHIBITING REQUIRING THE PAYMENT OF FEES FOR DEBIT OR CHARGE CARD PAYMENTS TO A STATE OR MUNICIPAL AGENCY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 1-1j of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2025): 2 (a) Each state agency, as defined in section 4-166, shall accept 3 payment in cash or by check, draft or money order for any license issued 4 by such agency pursuant to the provisions of the general statutes. 5 (b) Except as provided by any other provision of the general statutes, 6 the Secretary of the Office of Policy and Management may authorize any 7 state agency to accept payment of any fee, cost or fine payable to such 8 agency by means of a credit card, charge card or debit card or an 9 electronic payment service, provided each state agency that accepts 10 payment by means of a credit card, charge card or debit card and any 11 entity processing such payment on behalf of the state agency shall not 12 charge the payor using such card a service fee. [, except that such service 13 fee may be waived by such state agency for a category of fee, cost or fine, 14 Committee Bill No. 1118 LCO No. 6175 2 of 5 if such waiver has been approved by said secretary.] 15 [(c) (1) Any service fee imposed pursuant to subsection (b) of this 16 section shall (A) be for the purpose of defraying the cost of service, (B) 17 not exceed any charge by the credit card, charge card or debit card issuer 18 or processor, including any discount rate, and (C) be applied only when 19 allowed by the operating rules and regulations of the credit card, charge 20 card or debit card issuer or processor involved or when authorized in 21 writing by such issuer or processor. 22 (2) Each state agency that charges a service fee pursuant to this 23 section or any other provision of the general statutes shall disclose such 24 service fee to a payor prior to the imposition of such service fee. Such 25 disclosure shall be made in accordance with any requirements for 26 disclosure set forth by the card issuer or processor.] 27 [(d)] (c) Payments by credit card, charge card, debit card or an 28 electronic payment service shall be made at such times and under such 29 conditions as the secretary may prescribe in regulations adopted in 30 accordance with the provisions of chapter 54. 31 [(e) Payment of a fee, cost or fine, and any applicable service fee, by 32 credit card, charge card, debit card or an electronic payment service 33 shall constitute full payment of such fee, cost, fine or service fee, 34 regardless of any discount applied by a credit card company.] 35 Sec. 2. Section 12-39r of the general statutes is repealed and the 36 following is substituted in lieu thereof (Effective July 1, 2025): 37 The Commissioner of Revenue Services may allow the payment of 38 taxes, penalties, interest and fees by means of a credit card, charge card 39 or debit card, [and may] provided the commissioner shall not charge the 40 taxpayer a service fee for any such payment made by any such card. 41 [The fee shall not exceed any charge by the card issuer, including any 42 discount rate.] Payments by any such card shall be made at such times 43 and under such conditions as said commissioner may prescribe. The 44 Committee Bill No. 1118 LCO No. 6175 3 of 5 debt incurred through the payment of taxes by means of any such card 45 shall not be considered a tax collectible pursuant to the provisions of 46 sections 12-35a and 12-35b. 47 Sec. 3. Section 12-141a of the general statutes is repealed and the 48 following is substituted in lieu thereof (Effective July 1, 2025): 49 Each municipality may allow the payment of taxes, penalties, interest 50 and fees by means of a credit card, charge card or debit card or an 51 electronic payment service, [and may] provided the municipality shall 52 not charge the taxpayer a service fee for any such payment made by any 53 such card or electronic payment service. [Such fee shall not exceed any 54 charge by the card issuer or electronic payment service provider, 55 including any discount rate.] Payments by credit card, charge card or 56 debit card or an electronic payment service shall be made at such times 57 and under such conditions as the municipality may prescribe. The debt 58 incurred through the payment of taxes by means of a credit card, charge 59 card or debit card or an electronic payment service shall not be 60 considered a tax collectible pursuant to the provisions of section 12-172. 61 Sec. 4. Section 14-11i of the general statutes is repealed and the 62 following is substituted in lieu thereof (Effective July 1, 2025): 63 The Commissioner of Motor Vehicles may allow the payment of any 64 fee specified in this chapter or chapter 247 by means of a credit card, 65 [and] provided the commissioner shall not charge [each] a payor a 66 service fee for any payment made by means of a credit card. [The fee 67 shall not exceed any charge by the credit card issuer or by its authorized 68 agent, including any discount rate.] Payments by credit card shall be 69 made under such conditions as the commissioner may prescribe. [, 70 except that the commissioner shall determine the rate or amount of the 71 service fee for any such credit card in accordance with subsection (c) of 72 section 1-1j. Such service fee may be waived by the commissioner for a 73 category of fee if such waiver has been approved by the Secretary of the 74 Office of Policy and Management pursuant to subsection (b) of section 75 1-1j. If any charge with respect to payment of a fee by means of a credit 76 Committee Bill No. 1118 LCO No. 6175 4 of 5 card is not authorized by such issuer or its authorized agent, the 77 commissioner shall assess the payor the fee specified in subsection (f) of 78 section 14-50.] 79 Sec. 5. Subdivision (2) of subsection (g) of section 19a-88 of the general 80 statutes is repealed and the following is substituted in lieu thereof 81 (Effective July 1, 2025): 82 (2) The department shall not charge a service fee for [each] any 83 payment made by means of a credit card. [The Commissioner of Public 84 Health shall determine the rate or amount of the service fee for any such 85 credit card in accordance with subsection (c) of section 1-1j. Such service 86 fee may be waived by the commissioner for a category of fee if such 87 waiver has been approved by the Secretary of the Office of Policy and 88 Management pursuant to subsection (b) of section 1-1j.] 89 Sec. 6. Section 45a-113b of the general statutes is repealed and the 90 following is substituted in lieu thereof (Effective July 1, 2025): 91 Each Probate Court may allow the payment of any fees charged by 92 such court by means of a credit card, charge card, debit card or an 93 electronic funds transfer. Such court shall not charge the person making 94 such payment a service fee for any such payment made by means of any 95 such card or electronic funds transfer. [The fee shall not exceed any 96 charge by the card issuer or processing fee for electronic funds transfer, 97 including any discount rate. The Probate Court Administrator shall 98 determine the rate or amount of the service fee for any such card in 99 accordance with subsection (c) of section 1-1j.] 100 Sec. 7. Section 51-193b of the general statutes is repealed and the 101 following is substituted in lieu thereof (Effective July 1, 2025): 102 Payment of any fees, costs, fines or other charges to the Judicial 103 Branch may be made by means of a credit card and the payor shall not 104 be charged a service fee for any such payment made by means of a credit 105 card. [The service fee shall not exceed any charge by the credit card 106 Committee Bill No. 1118 LCO No. 6175 5 of 5 issuer, including any discount rate.] Payments by credit card shall be 107 made at such time and under such conditions as the Office of the Chief 108 Court Administrator may prescribe. [, except that the Chief Court 109 Administrator shall determine the rate or amount of the service fee for 110 any such card in accordance with subsection (c) of section 1-1j.] 111 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 1-1j Sec. 2 July 1, 2025 12-39r Sec. 3 July 1, 2025 12-141a Sec. 4 July 1, 2025 14-11i Sec. 5 July 1, 2025 19a-88(g)(2) Sec. 6 July 1, 2025 45a-113b Sec. 7 July 1, 2025 51-193b Statement of Purpose: To prohibit state agencies and municipalities from requiring the payment of any fee for use of a debit or charge card. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors: SEN. SAMPSON, 16th Dist. S.B. 1118