Senate Bill No. 1338 seeks to enhance the regulation of minors' access to money sharing application accounts by imposing specific requirements on licensed money transmitters, referred to as "licensees." Effective October 1, 2025, the bill prohibits licensees from allowing anyone to sponsor or open an account for a minor without a notarized statement confirming the individual as the minor's parent or legal guardian. Additionally, it mandates that licensees must delete a minor's account within 15 business days upon receiving a deletion request from the minor or their parent/legal guardian, with certain exceptions. The bill defines "money sharing application" and "minor," and classifies violations as unfair trade practices, enforceable solely by the Attorney General, with no private right of action for individuals.

The bill further establishes procedures for the deletion of minors' accounts and the processing of their personal data, requiring licensees to cease processing personal data within the same 15-business day period after a deletion request. It defines "personal data" and allows for a 15-business day extension for account deletion under specific conditions. Licensees must also create secure methods for submitting deletion requests and inform minors and their guardians about these methods in a privacy notice. Importantly, the bill clarifies that it does not create a private right of action or grounds for class action under the Connecticut Unfair Trade Practices Act (CUTPA).