Substitute House Bill No. 5489 addresses the calculation of interchange fees on electronic payment transactions, specifically excluding the amount of tax imposed under chapter 219 of the general statutes from the calculation of these fees. The bill defines relevant terms and requires payment card networks to either deduct the tax amount from the interchange fee at the time of settlement or provide a rebate for the proportionate amount of the interchange fee attributable to the tax. Retailers can either transmit the tax amount at the time of sale for immediate deduction or submit sales data for a credit to their settlement account. The bill also authorizes the Attorney General to enforce these provisions, with the ability to impose civil penalties and demand refunds for violations. The bill is set to take effect on October 1, 2024, and has no fiscal impact on state or municipal budgets.

The bill has been through committee action and received a Joint Favorable Substitute from the Finance, Revenue and Bonding Committee with a vote of 35 in favor and 16 against on April 2, 2024. While the bill's specific legal language changes, such as insertions or deletions, are not provided in the summary, it is clear that the bill aims to regulate how interchange fees are calculated in relation to the sales tax component of transactions. This legislation is relevant to retailers and payment card networks, as it changes the financial dynamics of electronic payment processing.