The proposed bill, known as the Fair Access to Online Utility Payment Act, aims to prohibit municipal utilities from imposing convenience fees on utility bills paid through online payment methods. The bill emphasizes the importance of online payment systems as a convenient and accessible option for ratepayers, particularly for low-income individuals, and asserts that municipalities can absorb the costs of these systems into their general operating expenses without unfairly burdening ratepayers. The legislation includes provisions that require municipalities to disclose costs associated with online payment systems in their annual budgets and to ensure that any rate increases related to these costs are proportional to the actual expenses incurred.

Additionally, the bill mandates that municipalities accepting electronic payments for utility services cannot impose any additional costs on users for these payment methods. It also encourages the State Treasurer to assist municipalities in negotiating cost-effective terms with third-party payment processors and to explore fee-free payment options. A grant program is to be designed to help municipalities transition to modern online payment systems, with findings and recommendations due by December 15, 2025. The act is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-583