Connecticut Seal

General Assembly

File No. 275

    February Session, 2016

Substitute House Bill No. 5296

House of Representatives, March 30, 2016

The Committee on Banking reported through REP. LESSER of the 100th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING CREDIT AND DEBIT HOLDS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2016) No gas station or convenience store that accepts credit or debit cards for the retail sale of gasoline shall, without the knowledge and consent of the consumer, place or allow a third party to place a hold on any credit or debit card account in an amount larger than the actual purchase amount for the gasoline without providing notice in conspicuous type and proximate to the point of payment prior to the consumer's purchase.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2016

New section

Statement of Legislative Commissioners:

In Section 1, "credit hold on purchases" was changed to "hold on any credit or debit card account in an amount" and "for the gasoline" was inserted before "without" for clarity and consistency with other provisions of the Section.

BA

Joint Favorable Subst.

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

This bill prohibits gas stations and convenience stores that accept credit or debit card payments for the retail sale of gasoline from placing, or allowing a third party to place, a hold on any such card for an amount larger than the actual gasoline purchase without the customer's knowledge and consent or without notice. As this provision relates to private entities, it does not result in a fiscal impact to the state or municipalities.

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

sHB 5296

AN ACT CONCERNING CREDIT AND DEBIT HOLDS.

SUMMARY:

This bill prohibits gas stations and convenience stores that accept credit or debit card payments for the retail sale of gasoline from placing, or allowing a third party to place, a hold on any such card for an amount larger than the actual gasoline purchase without the customer's knowledge and consent or without notice. The notice must be (1) in conspicuous type and close to the point of payment and (2) given before the customer's purchase.

EFFECTIVE DATE: October 1, 2016

COMMITTEE ACTION

Banking Committee

Joint Favorable Substitute

Yea

18

Nay

0

(03/15/2016)

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