OLR Bill Analysis

sSB 114 (File 178, as amended by Senate "A")*

AN ACT PROHIBITING LANDLORDS FROM REQUIRING TENANTS TO PAY RENT BY ELECTRONIC FUNDS TRANSFER.

SUMMARY:

For leases or rental agreements executed on or after October 1, 2013, this bill prohibits landlords (residential or commercial) from requiring that rent or security deposits be paid by electronic funds transfer. The bill defines “electronic funds transfer” as a funds transfer initiated through an electronic terminal, telephone, computer, or magnetic tape that orders, instructs, or authorizes a financial institution to debit or credit an account. It does not include any transfer originated by check, draft, or similar paper instrument.

*Senate Amendment “A” limits the prohibition to leases or rental agreements executed on or after October 1, 2013.

EFFECTIVE DATE: October 1, 2013

COMMITTEE ACTION

Housing Committee

Joint Favorable Substitute

Yea

12

Nay

0

(03/12/2013)