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 electronic methods. The bill emphasizes the importance of online payment systems for ratepayers, particularly for low-income individuals, and asserts that municipalities can absorb the costs of these systems into their general operating expenses without imposing additional financial burdens on 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 charge processing or convenience fees. It encourages the State Treasurer to assist municipalities in negotiating cost-effective payment processing terms and to explore fee-free payment methods. A grant program is also proposed to help municipalities transition to modern online payment systems, with findings and recommendations to be submitted to relevant Senate and House committees by December 15, 2025. The act is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-583