VT H0265

Prohibits municipalities from charging processing fees, convenience fees, or surcharges on electronic payments for utility bills (electric, water, wastewater, communications), including payments via online portals, mobile apps, or credit cards

Requires municipalities to absorb online payment system costs into general operating expenses, regardless of whether they use third-party payment processors

Mandates annual budget disclosure of online payment system costs and requires any resulting rate increases to be directly proportional to actual costs incurred

Directs the State Treasurer to provide guidance on negotiating cost-effective terms with payment processors and exploring fee-free options like ACH transfers

Requires the Secretary of State to design a grant program to help municipalities transition to cost-efficient online payment systems, with recommendations due to legislative committees by December 15, 2025