An Act Prohibiting Requiring The Payment Of Fees For Debit Or Charge Card Payments To A State Or Municipal Agency.
SB 1118 would prohibit state agencies, municipalities, and several other public entities from charging payors a service fee when they use a credit card, charge card, debit card, or certain electronic payment services to pay government fees, taxes, fines, and similar charges. The bill amends the state’s general statutes to remove language that currently allows agencies to pass along card-processing costs to the customer, and it applies this no-fee rule to state agencies, the Department of Revenue Services, municipalities, the Department of Motor Vehicles, the Department of Public Health, Probate Courts, and the Judicial Branch.
The bill also preserves the ability of these entities to accept card and electronic payments, but it lets them set the times and conditions for those payments through existing administrative authority. Its stated purpose is to prevent state and municipal agencies from requiring payment of fees for debit or charge card use, effectively shifting processing costs away from the individual payer and onto the public entity or its payment arrangements.
If enacted, the bill would amend sections 1-1j, 12-39r, 12-141a, 14-11i, 19a-88(g)(2), 45a-113b, and 51-193b of the general statutes, all effective July 1, 2025. The practical effect would be to eliminate service fees on card-based payments to covered state and local government entities, including tax payments, motor vehicle fees, public health fees, probate fees, and judicial branch charges. It would also remove prior statutory language that tied allowable service fees to card issuer processing costs or required approval for fee waivers, thereby changing how agencies and municipalities recover payment-processing expenses.
The available record suggests the bill was introduced as a committee bill and received a vote-to-draft tally sheet on February 14, 2025, with no yeas and no nays recorded, indicating no substantive recorded opposition or support at that stage. Because there are no committee transcripts or floor debate excerpts provided, the overall sentiment can only be characterized as procedurally neutral and early-stage rather than clearly contested. The bill’s sponsor and co-sponsorship indicate some legislative interest in consumer fee relief and payment convenience.
The main point of contention is likely fiscal: the bill shifts credit-card and electronic-payment processing costs away from the payer and onto state agencies, municipalities, or their payment systems. Supporters would view this as a consumer-protection and convenience measure, while opponents may argue it reduces local and state flexibility to recover transaction costs and could increase administrative expenses. Another possible issue is whether all covered entities should be treated the same, since the bill applies broadly across tax collection, licensing, courts, and public health fees despite differences in payment volume and processing arrangements.