Connecticut Seal

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House of Representatives

File No. 644

General Assembly

 

February Session, 2016

(Reprint of File No. 275)

Substitute House Bill No. 5296

 

As Amended by House Amendment

Schedule "A"

Approved by the Legislative Commissioner

April 14, 2016

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 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

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 notice. As this provision relates to private entities, it does not result in a fiscal impact to the state or municipalities.

House “A” eliminated language that had no fiscal impact.

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

sHB 5296 (as amended by House "A")*

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 providing notice to the customer. The notice must be (1) in conspicuous type and close to the point of payment and (2) given before the customer's purchase.

*House Amendment “A” removes customer consent as an exception to the bill's notice requirement.

EFFECTIVE DATE: October 1, 2016

COMMITTEE ACTION

Banking Committee

Joint Favorable Substitute

Yea

18

Nay

0

(03/15/2016)

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