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SB 1118 Connecticut Senate · 2025 Regular Session

AN ACT PROHIBITING REQUIRING THE PAYMENT OF FEES FOR DEBIT OR CHARGE CARD PAYMENTS TO A STATE OR MUNICIPAL AGENCY.

SB 1118 prohibits state and municipal agencies from charging service fees when taxpayers pay fees, taxes, or fines using debit or credit cards. This affects individuals paying for services like driver’s licenses, property taxes, or municipal permits through card payments, as agencies can no longer add extra charges for card processing. The bill amends multiple statutes to require agencies to accept cash or checks without fees and bans all service fees for card transactions, effective July 1, 2025. It removes previous allowances for agencies to pass on card processor costs to payors.
Issues: ✓ Budget & TaxesSupports Budget & TaxesProhibits service fees on card payments for taxes/fees, reducing taxpayer burden. Aligns with tax relief and fiscal responsibility under Budget & Taxes.90% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 23, 2025 Last action Mar 17, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Proposed Bill → Committee Bill · 6 edits
MODERATE
The bill was amended to shift focus from prohibiting third-party processing fees to allowing state and local agencies to accept credit/debit card payments without charging service fees to payors. The committee version adds specific provisions for credit card payments, clarifies when fees can be charged, and expands applicability to municipalities and specific departments.
Scope change
The bill's scope expanded from only prohibiting third-party fee requirements to actively allowing and regulating credit card and electronic payment options across state agencies, municipalities, and specific departments.
REQUIREMENT

Changed the title and purpose from prohibiting third-party license fee processing to prohibiting service fees on credit/debit card payments to state and municipal agencies.

Added provisions allowing state agencies to accept credit/debit card payments with explicit restrictions that no service fees can be charged to payors.

Added disclosure requirements for service fees and conditions for when fees may be charged based on card issuer rules.

ELIGIBILITY

Extended payment options to include municipalities and specific departments like Motor Vehicles and Public Health.

DEFINITION

Added references to the Secretary of the Office of Policy and Management for oversight of service fee waivers and regulations.

TIMELINE

Added effective date of July 1, 2025 for all substituted statutory sections.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
5
Key actions
1
Committee
3
Mar 14, 2025
Committee
REF. TO JOINT COMM. ON Government Administration and Elections
upper
Mar 13, 2025
Upper · Passed
DRAFTED BY COMMITTEE
upper
Jan 23, 2025
Committee
REF. TO JOINT COMM. ON Government Administration and Elections
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.