An Act Concerning Minors' Money Sharing Application Accounts.
Summary
SB 1338 creates new rules for money-sharing application accounts used by minors. It defines a “money sharing application” as an internet-based service or app owned or operated by a licensed entity and primarily intended to let users send and receive money, with certain exempt entities excluded. Beginning October 1, 2025, a licensee may not allow someone to sponsor, open, or establish such an account for a minor unless the licensee receives a notarized statement from the adult attesting that the person is the minor’s parent or legal guardian.
The bill also gives minors, parents, or legal guardians the right to request deletion of a minor’s money-sharing account. The licensee must delete the account and stop processing the minor’s personal data within 15 business days, with one possible 15-business-day extension if needed and properly noticed. The request may also ask for account data, including transaction history and the identity of the person who opened the account. Licensees must provide secure and reliable ways to submit these requests and must explain those methods in their privacy notices. If a request cannot be authenticated, the licensee is not required to comply but must notify the requester and explain what additional information is needed.
The bill’s legal effect is to add a new consumer-protection requirement to the statutes governing licensed money-sharing services and related data handling. It ties compliance to Connecticut’s unfair trade practice law, making violations an unfair trade practice enforceable only by the Attorney General. It also expressly bars private lawsuits under the consumer protection statute for violations of this section. The bill takes effect October 1, 2025.
The available voting history shows strong support: the Joint Favorable Substitute passed committee 11-0. No committee transcript is provided, so there is no recorded debate to indicate broader public disagreement. The overall sentiment appears favorable and protective of minors’ privacy and financial safety, with the bill framed as a consumer-protection measure rather than a punitive one.
The main point of potential contention is the compliance burden on licensees, especially around notarized parental/guardian attestations, authentication of deletion requests, and the obligation to provide account data and transaction histories. Another possible issue is the balance between minors’ privacy rights and the operational needs of money-transfer platforms, though the bill’s unanimous committee vote suggests these concerns did not prevent consensus.
Impact
This bill adds a new section to Connecticut law regulating licensed money-sharing application providers. It imposes parental/guardian verification requirements for opening accounts for minors, creates a statutory right to delete a minor’s account and associated personal data, requires disclosure of certain account information upon request, and mandates secure request procedures and privacy-notice disclosures. Violations are treated as unfair trade practices enforceable by the Attorney General, with no private right of action.
Sentiment
The bill appears to have broad support based on the 11-0 Joint Favorable Substitute vote, and the absence of recorded opposition or committee testimony suggests a generally positive reception. The measure is framed as protecting minors’ privacy, limiting unauthorized account creation, and giving families control over children’s financial-app data.
Contention
The likely areas of concern are operational and compliance-related: requiring notarized proof of parent or guardian status, authenticating deletion requests, and meeting short deadlines for account deletion and data production. These requirements may be viewed as burdensome by licensees and app operators, while supporters would likely emphasize the need to prevent unauthorized minor accounts and protect children’s personal data. No explicit opposition is documented in the provided materials.